Introducing Sphere Risk Scores

We at Block Analitica are excited to introduce Sphere Risk Scores, a new system for finding the best risk-adjusted yields in DeFi. 🔮

→ https://sphere.blockanalitica.com/risk-scores

Use Sphere Risk Scores to:

• Explore risk vs return for all major stablecoins on mainnet

• Find the pools tailored to your risk profile

• Create a robust starting point for yield farming

This first version of Sphere Risk Scores covers two dimensions: market risk and liquidity risk. More risk scores are in development and will be introduced in future updates.

The market risk score measures the relative risk of undercollateralization caused by a sudden price shock, taking into account the second-order effects of onchain liquidity, liquidation bonuses, and the LTV of individual borrowers. Higher scores indicate elevated market risk.

The market risk scatter plot compares each pool’s Market Risk Score (x-axis) with its Supply APY (y-axis). Pools in the top-left quadrant offer the most attractive trade-off: higher yield with lower market risk.

The liquidity risk score evaluates pool liquidity by measuring supplier and borrower concentration, average utilization, and relative pool size. Higher scores indicate elevated liquidity risk.

Similar to market risk, pools in the top-left quadrant of the liquidity risk scatter plot offer the most attractive trade-off: higher yield with lower liquidity risk.

Further down the Risk Scores page, a table lists all pools with six relevant metrics:

• Current Supply Rate

• Average Supply Rate

• Total Supply

• Pool Utilization

• Market Risk Score

• Liquidity Risk Score

The Pool Risk Profiles page provides a multidimensional overview of pools, combining six metrics on a unified indexed scale. More favourable values appear nearer the radar chart’s perimeter, meaning a larger filled area typically signals a stronger risk-return profile.

New metrics have also been added to each pool page:

• Utilization moving averages

• Supplier and Borrower HHI

• Risk Scores

• Collateral Composition

• Collateral at Risk

To learn more about our methodology, visit the new Sphere Documentation Portal.

→ https://docs.blockanalitica.com/

Our goal is to deliver a comprehensive suite of curated risk scores, helping users find the best risk-adjusted yields in DeFi. Next, we plan on adding oracle risk and settlement process evaluations.

Let us know if you have any feedback about existing and upcoming features, we'd be happy to hear any ideas and suggestions!

With all the upcoming features in mind, make sure to bookmark the dashboard for future use!

🔖 🔖 https://sphere.blockanalitica.com/ 🔖 🔖

Disclaimer: The data and information presented in the Sphere dashboard are for informational purposes only and are provided “as is” without any warranty. The Sphere dashboard is not intended or offered as financial, legal, regulatory, tax, or investment advice. Any references in the Sphere dashboard to particular assets or protocols are not recommendations or solicitations to engage with said asset or protocol. The information presented in the Sphere dashboard does not constitute financial or investment advice. For financial advice, consult a professional advisor.