Risk-adjusted APY
Headline APY discounted by the StableLens risk model — comparable across protocols, chains, and structures.
Risk-adjusted APY = APY × (1 − model-implied tail-loss expectation), where tail-loss is a function of grade, exit liquidity, and historic-loss prior. Lets allocators compare an 8% APY on a B-graded pool vs. a 4.5% APY on AAA without manually adjusting. See /methodology/v0.1.
Related terms
- APY (annual percentage yield)An annualised yield that accounts for compounding — the standard quote for variable-rate lending.
- Risk gradeA letter grade (AAA → D) summarising overall stablecoin or yield-pool risk under the StableLens v0.1 model.
- MethodologyThe published, versioned framework StableLens uses to compute risk grades, peg-stability scores, and risk-adjusted APY.