Sharpe ratio
Excess-return-over-cash divided by return volatility — the canonical risk-adjusted-return metric.
Sharpe = (R_strategy − R_riskfree) / σ_strategy. Useful for comparing strategies but assumes Gaussian returns; underestimates fat-tailed strategies. StableLens reports both Sharpe and a downside-only variant (Sortino) on yield pages to penalise asymmetric loss distributions.
Related terms
- DrawdownPeak-to-trough loss over a window — the headline measure of strategy-level downside risk.
- Risk-adjusted APYHeadline APY discounted by the StableLens risk model — comparable across protocols, chains, and structures.
- Tail riskThe risk of rare, large-loss events sitting in the far end of the return distribution — typically underestimated by short-window historical models.