Market Dynamics & Analysis

The current Decentralised Finance environment is exhibiting a rising yield environment. Based on our aggregate data from the last 6 months, the base rate has hovered between a low of 2.74% and a high of 2.91%. This range indicates the market is currently remarkably stable.

The "Risk-Free Rate" of Crypto

What is this metric? The DeFi risk-free rate represents the weighted average yield of the safest stablecoin pools in the ecosystem over the last 24 hours. It strictly filters for protocols with a Safety Score > 80/100 and minimum liquidity of $5M. This acts as the fundamental gravity for all other crypto yields.

How to use it: Use this rate as your benchmark for safe stablecoin yields. If a new protocol offers you 15% APY while the Composite Rate is 3.1%, the excess return represents risk. In simpler terms, you are being paid extra to accept higher probabilities of peg failure, smart contract exploits, or liquidity crunches.

Methodology & Safety Criteria

To ensure this index accurately reflects a "blue-chip" standard, we utilise a rigorous filtering process. Not every pool qualifies for the Composite Index. We specifically exclude highly volatile algorithmic stablecoins and newer, unproven protocols. Data is aggregated hourly via our internal indexer.

Our Safety Score (80+) requirement mandates that included pools must have:

• Audited Contracts: Multiple independent security audits from reputable firms.
• Time-Weighted TVL: Sustained liquidity over $5M USD to prevent manipulation by whales.
• Lindy Effect: Protocols must have been operational for a significant period without critical exploits.
• Decentralised Governance: Administration keys must be behind a timelock or multisig wallet.