Protocols Analysis
How Analys evaluates different protocols.
How Analys evaluates different protocols.
The goal at this point is to assess a multi-factorial grading of each token of each protocol and store these information in a transparent, cheap and decentralized way.
Analyis communicates with to collect the primary data it needs about all DeFi yield-earning protocols on Solana. Secondly, Analys communicates with to access real-time price feeds of the different TAFs.
Additionally, to access specific data about each protocol such as their yield, liquidity depth, deposit requirements or minimum staking period (if existing), Analys interacts with the different smart contracts in order to collect these information. It then send this data off-chain to store the final data as well as its evolution.
To minimize costs and offer a seamless user experience, Analys stores the data previously collected off-chain, in secure servers. This enables Alchemis to drastically reduce its costs, only storing critical information on-chain.
By storing the data, Analys can evaluate the evolution of the different metrics, separately and together to assess a general grade for each TAF. Complementing these data with temporality enables Analys to determine metrics such as mean yield as well as standard deviations to analyze the volatility of different metrics. Additionally, Analys combines price feeds to determine if the yield is market dependent (which would decrease the protocols' rating).
Note: To reduce costs whilst ensuring a maximal quality, Analys runs a data collection and storage for each TAF every 5 minutes.
Ultimately, considering the 3 main criteria (TVL, liquidity, yield) as well the multiple secondary criteria mentioned above as well as other, Analys assesses a multi-factorial grade (multiple gradings for multiple analysis angles) of each TAF on the protocol side, that will later be used to assess yield expectation as well as risk.