Monad APR Documentation Alpha

Risk Breakdown

The 4 Breakdown Axes

The risk breakdown explains why a pool received its score.

Each axis shows:

  • a score out of 100;
  • its weight in the final score;
  • readable notes;
  • sometimes a penalty or bonus.

1. Protocol

The Protocol axis measures protocol strength.

Signals include:

  • number of public audits;
  • protocol age;
  • protocol TVL;
  • hack or incident history;
  • open-source status when available;
  • firstSeen fallback when DefiLlama does not provide a reliable date.

Example notes:

  • Audits: 2 audits;
  • Age: established;
  • Protocol TVL: very high TVL;
  • History: 1 past hack/exploit;
  • Open-source: yes.

2. Asset

The Asset axis measures token quality and pool exposure.

Signals include:

  • tiers of underlying tokens;
  • stablecoin presence;
  • blue-chip or exotic assets;
  • single-asset or multi-asset exposure;
  • impermanent loss risk;
  • pool size.

A single-asset pool usually has a better IL profile than a volatile LP. A stable-stable or same-peg LP is penalized less than a volatile-volatile LP.

Examples:

  • Tokens: USDC=A+, WMON=A;
  • Exposure: single-asset (no IL);
  • Pair: stable-volatile;
  • Pool size: thin pool TVL <$50k.

3. Yield

The Yield axis measures yield quality.

The model distinguishes:

  • base yield;
  • native yield from the underlying asset;
  • rewards or incentives;
  • extreme APY;
  • APY marked as an outlier.

Yield that mostly comes from real revenue or native staking scores better than yield mostly driven by temporary incentives.

Examples:

  • Yield: real revenue / staking;
  • Yield: mostly token incentives;
  • APY > 200%;
  • DefiLlama flagged APY as outlier.

4. Liquidity

The Liquidity axis measures how easily a user can exit the position.

Signals include:

  • protocol family;
  • product type;
  • instant withdrawal or withdrawal queue;
  • bridge or cross-chain dependency;
  • TVL depth.

Examples:

  • AMM: exit limited by slippage;
  • lending: instant withdraw, pause-able;
  • LST with unbonding queue;
  • cross-chain: bridge dependency;
  • Pool depth: exit slippage risk.

Manual Overrides

Monad APR can apply a manual override when automatic data is not enough, for example after a known exploit.

An override can:

  • add a visible reason;
  • cap the score;
  • show a red callout in the breakdown.

Overrides are intentionally conservative.