Genesis Risk Model
The Genesis Risk Model, also called the Spool Labs Risk Model, is the first Risk Model supported within the Spool Ecosystem. The model strives to give quantifiable Risk Scores to DeFi Protocols based on the following input parameters:
- The "Risk Free" annual percentage yield
- Time deployed
This model takes into account the aforementioned input variables to construct a Risk Score based on the differences between selected protocols on these particular input variables.