Skip to main content

Risk-adjusted APY

Yield & returns

Headline APY discounted by the pool's durability rating, so a fragile 20% and a robust 6% can be compared on one axis.

The discount reflects the probability that the observed rate persists and that principal survives — thin depth, reward-heavy composition and unstable TVL all reduce the adjusted figure.

It is a ranking device, not a forecast. Two pools with the same adjusted number can still fail in completely different ways.

Why it matters

It is the fastest way to strip incentive noise out of a yield leaderboard.

See it in action

Related terms

More in Yield & returns