Question 1

What is the Pharos Yield Score (PYS)?

Accepted Answer

The Pharos Yield Score (PYS) is a risk-adjusted yield metric scored 0-100 that balances yield magnitude against safety, benchmark context, and consistency. It starts from 30-day average APY, adds 25% of the row's benchmark spread, divides that effective yield by a safety-derived risk penalty raised to a fixed exponent, then applies a sustainability multiplier based on APY volatility over the same period. Higher-safety stablecoins incur a much lower adjusted penalty, so moderate but durable yield can compete with riskier double-digit offers.

Question 2

How are stablecoin yields sourced?

Accepted Answer

Yields are resolved through deterministic on-chain reads, curated DeFiLlama sources, price-derived or rate-derived fallbacks, and curated lending opportunities. Rankings refresh hourly, with slower supplemental-source families merged in from a separate four-hour lane, and preserve source-specific history so trailing APY metrics stay tied to the active source.

Question 3

What does 'risk-adjusted' mean for stablecoin yield?

Accepted Answer

Risk-adjusted yield accounts for the safety of the stablecoin issuing the yield, not just the raw APY. A stablecoin with a high safety grade (A or A+) receives a much lighter adjusted penalty in the PYS formula, so even a moderate APY can score well. Conversely, a risky stablecoin must offer meaningfully higher raw yield to achieve the same PYS, reflecting the extra risk borne by the holder.

Yield Intelligence