Framework v2.0 · Delta-neutral mandate

How scoring works

Every asset goes through two stages: a hard gate check, then a scored evaluation. An asset must pass all 9 gates before any score is assigned. The score determines which tier it belongs to and whether it is eligible for looping or Royco tranching.

Overview

01
9 gate checks

Binary pass/fail. Any single failure rejects the asset immediately — no score is given.

02
5 dimension scores

Each passing asset scored 0–5 per dimension. Max total is 25.

03
Tier assignment

Score maps to Tier 1, 2, 3, or Rejected. Tier determines loop and Royco eligibility.

Tier assignment thresholds
ScoreTierLoop eligibleRoycoMax allocation
20–25Tier 1 — Core stableYes (verify oracle)Senior tranche50% of index
14–19Tier 2 — Growth stableNoJunior tranche30% of index
8–13Tier 3 — High yieldNoNone15% of index
<8Rejected0%

Gate checks

Gates are binary — pass or fail. All 9 must pass. A single failure means the asset is rejected and no score is computed. Gates marked "hard reject" reflect structural risks that no score can compensate for.

G1
USD-pegged assethard reject
pegType must equal peggedUSD

This screener is delta-neutral only. Any crypto-correlated asset (ETH, BTC, LSTs, LRTs) is disqualified regardless of yield. Full stop.

source:Pharos API — stablecoin summary
G2
Pendle pool liquidity ≥ $3M
Best active pool must have ≥ $3M liquidity

Below $3M, entry and exit slippage becomes significant relative to PT yield. The gate ensures minimum tradeable liquidity exists.

source:Pendle API — live market data
G3
Protocol TVL ≥ $20M
DefiLlama TVL ≥ $20M (supply used as fallback)

A protocol with under $20M TVL has insufficient market validation. Small protocols carry disproportionate smart contract and liquidity risk.

source:DefiLlama API — protocol detail
G4
Protocol age ≥ 9 months
listedAt timestamp → ≥ 270 days old

New protocols haven't been battle-tested through market stress events. 9 months is the minimum to observe one full rate cycle.

source:DefiLlama API — listedAt field
G5
Public audit existshard reject
At least 1 audit recorded on DefiLlama

Unaudited protocols are non-negotiable rejections. Audit quality matters too — the oracle check (D5) rewards higher-quality oracle setups separately.

source:DefiLlama API — audits field
G6
No depeg > 2% in 12 months
Zero Pharos depeg events > 200bps in last 365 days

A 2% depeg on a stablecoin is a structural signal, not noise. Any such event in the last year means the peg mechanism has already shown weakness.

source:Pharos API — depeg events
G7
No exploit or pause in 12 monthshard reject
No known exploit or emergency pause

An exploit or emergency pause in the last year disqualifies the asset permanently for this index cycle. Also cross-check rekt.news manually.

source:Known incidents list + Pharos defunct flag
G8
Pharos safety grade ≥ C
Pharos letter grade must be C or better

Pharos aggregates on-chain safety signals (liquidity, resilience, decentralisation, dependency risk) into a single grade. F or D means too many red flags.

source:Pharos API — report cards
G9
No active depeg right now
activeDepeg flag must be false

You cannot enter a PT position while the underlying is actively depegged. This is a live check run at time of screening.

source:Pharos API — peg summary (live)

Dimension scores

Five dimensions scored 0–5 each. Maximum total is 25. Scores are additive — no single dimension can override another. Oracle reliability (D5) is shown in the report but must be verified manually on app.euler.finance — it does not contribute to the automated score.

D1
Pool liquidity depth
max 5/5
5
Best pool ≥ $50M liquidity
4
Best pool $25M – $50M
3
Best pool $10M – $25M
2
Best pool $1M – $10M
1
Best pool $300K – $1M
0
No active pool found

Measured against the deepest active Pendle pool across Ethereum, Arbitrum, and Base.

D2
Protocol TVL & age
max 5/5
5
TVL ≥ $2B and age ≥ 2 years
4
TVL ≥ $500M and age ≥ 18 months
3
TVL ≥ $200M and age ≥ 12 months
2
TVL ≥ $50M and age ≥ 9 months
1
TVL ≥ $20M and age ≥ 9 months
0
Below minimums or age unknown

Both TVL and age must meet the threshold. A large but new protocol scores lower than an established one.

D3
Yield source quality
max 5/5
5
Fiat-backed (USDC, USDT, USDS) — direct redemption, no model risk
4
Delta-neutral funding rate (USDe, sUSDe) — audited, transparent hedging
4
RWA-backed (T-bills, money market) — regulated counterparty
3
Institutional overcollateralised loans (Maple syrupUSDC)
2
Multi-layer protocol stacking — complex dependencies
1
Incentive or points-driven yield — temporary and unsustainable
0
Opaque or unknown yield source

Average of mechanism score and Pharos resilience score (0–100 scaled to 0–5). Blended to avoid over-relying on either signal alone.

D4
Peg stability
max 5/5
5
Pharos peg score ≥ 90
4
Pharos peg score 75–89
3
Pharos peg score 60–74
2
Pharos peg score 45–59
1
Pharos peg score 30–44
0
Peg score below 30 or unavailable

Powered by Pharos peg score — a continuous 0–100 signal based on historical deviation, active monitoring, and peg defence mechanisms.

D5
Maturity profile
max 5/5
5
90–180 days to maturity — optimal sweet spot
4
60–90 days or 180–270 days
3
45–60 days or 270–365 days
2
30–45 days — approaching rollover zone
1
21–30 days or over 365 days
0
Under 21 days or no active pool

Based on the best active pool with at least 21 days remaining. Under 21 days = not scored (approaching expiry). Over 365 days = thin liquidity on long-dated pools.

D6
Oracle reliability
shown in report · not scored

Oracle quality determines whether a PT can be safely looped on a lending protocol. This cannot be automated reliably — it requires checking each lending platform directly.

5 — RedStone Dynamic PT Oracle + Chainlink fallback (Euler)
4 — RedStone Dynamic PT Oracle only
3 — Pendle native TWAP on Silo or Dolomite
1 — No lending protocol integration found
Check app.euler.finance ↗

What this screener does not cover

YT tokens

Yield tokens have a separate evaluation framework (time decay, implied vs realised yield edge, catalyst clarity). Not included here.

Looping mechanics

Loop spread, Euler utilisation ratio, LTV guardrails, and unwind schedules are position-level decisions made after tier assignment — not part of this screener.

Royco tranche sizing

Whether to use Senior or Junior and at what allocation requires checking live Royco pool TVL and Junior buffer ratios at time of entry.

Non-stablecoin PTs

ETH, BTC, LSD, and LRT-based PTs are excluded by the delta-neutral mandate. This screener is stablecoins only.

Real-time price data

Results are cached for 60 minutes. For live position management, always verify current data directly on Pharos, Pendle, and DefiLlama.

Data sources & freshness

SourceWhat we useUpdate frequencyCache
Pharos WatchSafety grade, peg score, depeg events, supplyEvery 10–15 min60 min
DefiLlamaProtocol TVL (time-series), age, audit countDaily60 min
Pendle APIPool liquidity, PT APY, maturity dateReal-time60 min

All data is fetched fresh on first request and cached for 60 minutes server-side. Cached results show a timestamp at the bottom of each report. For time-sensitive decisions, verify directly on the source platforms.

Disclaimer

PT Screener is a research tool built for informational purposes only. It is not financial advice, investment advice, or a recommendation to buy, sell, or hold any asset. DeFi protocols carry smart contract risk, liquidity risk, oracle risk, and governance risk that no automated screener can fully capture. Always do your own research. Never invest more than you can afford to lose.