Risk Scores

Risk Scores - Overview

The Risk Scores page displays Sphere Risk Scores together with supporting charts. Developed using Block Analitica’s proprietary data and risk-modelling expertise, Sphere Risk Scores aim to become the industry standard for evaluating pool-level risk and identifying the best risk-adjusted yields in DeFi.

This first version of Sphere Risk Scores covers two metrics: Market Risk Score and Liquidity Risk Score. A broader range of risk scores is in development and will be introduced in future updates.

Market Risk Scatter Plot

The Market Risk scatter plot compares each pool’s Market Risk Score (x-axis) with its Supply APY (y-axis). The Market Risk Score increases from left (low risk) to right (high risk), while returns rise from bottom (low APY) to top (high APY). The upper-left quadrant show pools with higher APY and lower Market Risk Score, suggesting an attractive balance of risk and reward.

Learn more about the Market Risk Score methodology:

Market Risk Score

Liquidity Risk Scatter Plot

The Liquidity Risk scatter plot compares each pool’s Liquidity Risk Score (x-axis) with its Supply APY (y-axis). The Liquidity Risk Score increases from left (low risk) to right (high risk), while returns rise from bottom (low APY) to top (high APY). The upper-left quadrant show pools with higher APY and lower Liquidity Risk Score, suggesting an attractive balance of risk and reward.

Learn more about the Liquidity Risk Score methodology:

Liquidity Risk Score

Risk Profile Radar Chart

The Pool Risk Profile Radar Chart offers a multidimensional overview of Sphere Risk Scores and other relevant pool metrics. To enable a clear and holistic comparison across pools, the radar chart displays six metrics, each rescaled to a uniform 0 - 100 range regardless of their original units. The radar chart follows a consistent principle across all axes: the farther a point lies from the center, the more favorable the score.

• Market Risk Score: Because lower risk is considered safer, lower values are plotted farther out from the center.

• Liquidity Risk Score: Because lower risk is considered safer, lower values are plotted farther out from the center.

• Average Supply APY: Because a higher supply APY signals a more attractive return, it is plotted nearer the perimeter of the radar chart.

• Average Utilization: A lower utilization generally considered safer from a liquidity perspective. Lower values are therefore plotted nearer the chart's perimeter, while higher utilization appears progressively closer to the center.

• Supplier Concentration (HHI): Lower HHI is generally considered safer. Lower values are therefore plotted nearer the chart's perimeter, while higher HHI appears progressively closer to the center.

• Borrower Concentration (HHI): Lower HHI is generally considered safer. Lower values are therefore plotted nearer the chart's perimeter, while higher HHI appears progressively closer to the center.