Risk Scoring
Every vault in YeldX has a composite risk score computed from 5 independent components. The score determines the risk label shown on each vault card.
Risk levels
| Label | Score range | Color |
|---|---|---|
| Low | 0 – 25 | Green |
| Medium | 26 – 50 | Yellow |
| High | 51 – 75 | Orange |
| Degen | 76 – 100 | Red |
The score is the weighted sum of 5 components, each contributing 0–20 points.
The 5 risk components
graph TD
Score[Risk Score 0-100] --> Protocol[Protocol Safety 0-20]
Score --> TVL[TVL Size 0-20]
Score --> APY[APY Anomaly 0-20]
Score --> Rewards[Reward Dependency 0-20]
Score --> Redeem[Redeemability 0-20]
1. Protocol Safety (0–20)
Assigns a penalty based on the protocol's maturity and track record:
| Protocol | Penalty |
|---|---|
| Aave v3, Morpho, Compound v3, Spark | 0 (safest) |
| Yearn, Beefy, Euler | 5 |
| Pendle, Velodrome, Aerodrome | 10 |
| Unknown / other | 15 |
2. TVL Size (0–20)
Larger TVL = more liquidity = lower risk:
| TVL | Penalty |
|---|---|
| > $100M | 0 |
| $10M – $100M | 5 |
| $1M – $10M | 10 |
| < $1M | 20 |
3. APY Anomaly (0–20)
Detects vaults where live APY significantly exceeds the 30-day average — a sign of temporary reward spikes that may not sustain:
| Condition | Penalty |
|---|---|
| Live APY < 1.5x the 30d avg | 0 |
| Live APY 1.5x – 3x the 30d avg | 10 |
| Live APY > 3x the 30d avg | 20 |
4. Reward Dependency (0–20)
Vaults whose yield is primarily driven by token emissions (not organic protocol fees) are riskier — emissions can end:
| Reward share of total APY | Penalty |
|---|---|
| < 20% | 0 |
| 20% – 50% | 5 |
| 50% – 80% | 12 |
| > 80% | 20 |
5. Redeemability (0–20)
Non-redeemable vaults (locked positions, expired PTs) carry maximum penalty:
| State | Penalty |
|---|---|
isRedeemable: true | 0 |
isRedeemable: false | 20 |
Example calculations
Aave USDC on Base
| Component | Value | Penalty |
|---|---|---|
| Protocol | Aave v3 | 0 |
| TVL | $450M | 0 |
| APY anomaly | Live ≈ 30d avg | 0 |
| Reward dep. | 0% reward | 0 |
| Redeemability | Redeemable | 0 |
| Total | 0 → Low |
Small incentivized LP vault
| Component | Value | Penalty |
|---|---|---|
| Protocol | Velodrome | 10 |
| TVL | $3M | 10 |
| APY anomaly | 2x spike | 10 |
| Reward dep. | 90% reward | 20 |
| Redeemability | Redeemable | 0 |
| Total | 50 → High |
Design philosophy
The scoring system is inspired by Beefy Finance's safety score and adapted for YeldX's use case. The goal is to surface objective signals — not to make subjective judgments about individual protocols. A Degen score doesn't mean "don't use this vault" — it means "understand the risks before you do."
YeldX does not audit smart contracts or provide financial advice. Always DYOR before depositing.