Personal research project — paper-testing & tuning, not raising capital.

How SPA Works

The mechanics behind systematic, risk-gated DeFi yield management.

What SPA Does

SPA is an autonomous yield optimizer for onchain stablecoins. It runs daily scans of whitelisted DeFi lending protocols, applies a deterministic risk gate to every proposed allocation, and rebalances between protocols when drift exceeds a threshold. There is no discretionary human override in the execution path. There is no LLM in the execution path.

What SPA Does Not Do

Does not use leverage (Balanced/Conservative strategies)
Does not use unaudited protocols
Does not bypass RiskPolicy gates
Does not rely on LLMs for execution decisions
Does not hold non-stablecoin assets
Does not make discretionary overrides

Daily APY Scan

Every day, SPA executes a full scan of supported protocols to collect current yield data.

Data source DeFiLlama Yields API — primary APY feed
Adapters Dedicated read-only adapter per protocol
Sanity check APY bounds [1%, 30%] — anything outside triggers a flag
Schedule Daily cycle (automated via scheduler)
Output Timestamped JSON log per cycle

Data Sources

Primary

DeFiLlama Yields API

Aggregated APY/TVL across all supported pools

On-Chain

Protocol adapters (read-only)

Direct contract reads for position verification

Oracles

Chainlink / Pyth price feeds

Collateral checks for Aggressive strategy

Logging

All data sources logged per cycle

Full audit trail in timestamped JSON

Protocol Adapters

Each supported protocol has a dedicated read-only adapter. Adapters normalize APY, TVL, and pool metadata into a standard format for the allocation engine. No write access at scan stage.

CURRENT ADAPTER REGISTRY — 35 adapters (sample shown)

Aave V3 (ETH) Aave V3 (Base) Morpho Blue (ETH) Morpho Blue (Base) Compound V3 Yearn V3 Euler V2 Sky/sUSDS Spark sFRAX Pendle PT Maple Morpho Steakhouse

Evidence Levels (L0–L6)

Every yield number on this site carries an evidence level — how much real confirmation stands behind it. Below L2, no APY reaches any public surface. Paper is L3 and is always labelled "paper", never "live". This is the canonical scale (ADR-YL-009); other pages only use the tags.

L0 Idea / unverified — a hypothesis. No APY may be quoted at all.
L1 Historical public APY observed from a named source (label as historical, unverified as executable).
L2 Data-source verified — pulled by our own code, schema- & freshness-checked. Minimum level to show any number.
L3 Paper-tracked over N evidenced days against live data (no backfill). Must say "paper", never "live".
L4 Small-capital tested — real but small capital; execution frictions (slippage, gas, fills) observed.
L5 Live-capital tested — meaningful product-tier capital through at least one full entry/exit.
L6 Multi-cycle validated — survived multiple regimes incl. a stress episode. The only level supporting a durable claim.

Where SPA is now: our evidenced paper track is honest L3 ("paper-tracked over N evidenced days"), not L4+. The conservative "~3.3% real" baseline and the Paper APY on /track-record are L3 numbers, labelled "variable · not guaranteed". We never call paper "validated" or "live-tested"; promotion is one level at a time.

RiskPolicy v1.0 Parameters

A deterministic, hard-coded gate. No human, no AI, no strategy can override these parameters.

Parameter Value
TVL floor $5M minimum per pool
Per-protocol cap (Tier 1) 40% of portfolio
Per-protocol cap (Tier 2) 20% of portfolio
Tier 2 total cap ≤50% of portfolio
Cash buffer ≥5%
APY lower bound 1% (avoid dust yields)
APY upper bound 30% (sanity cap)
Kill switch — SOFT (peak drawdown) ≥5% → de-risk (halt new, no liquidation)
Kill switch — HARD (peak drawdown) ≥10% → all to cash

Risk-Gated Rebalancing

Rebalance triggered when allocation drift exceeds threshold
Each rebalance proposal checked against full RiskPolicy
If any gate fires → rebalance blocked, reason logged
Blocked rebalances visible in Dashboard → Risk Blocks tab
Human cannot override blocked rebalance in paper trading phase

Strategy Tournament

Multiple strategies run in parallel and are evaluated on risk-adjusted performance. Tournament output is advisory-only — all allocation decisions still go through RiskPolicy gate. No strategy can override the gate.

Participants

Multiple strategies run in parallel on paper

Scoring

Risk-adjusted APY (Sharpe-weighted)

Promotion

Top performers promoted to paper track record

Current Leader

Balanced strategy — current tournament winner

Strategy Profiles

SPA offers three strategy profiles: Conservative, Balanced, and Aggressive. Each has a distinct risk/return target and validation status.

Paper Tracked Balanced

Paper tracked since June 22, 2026 (evidenced anchor). Verified performance data available on dashboard.

Validation Pending Conservative / Aggressive

Target profile defined. Paper tracking not yet started. No historical performance data.

Supported Assets

SPA operates exclusively with stablecoins. Minimum asset set for private MVP:

USDT

  • TRC-20 (Tron)
  • ERC-20 (Ethereum)

USDC

  • ERC-20 (Ethereum)

Compounding & Logging

Yields compound daily (notional in paper mode)
Every cycle produces a timestamped JSON log
Logs available in Dashboard → Trades tab

GoLiveChecker

Criteria Status 27 / 29 pass

29 criteria must pass before live deployment.

Failing criteria visible in Dashboard → GoLiveChecker tab.

Go-live target: July 2026

Versioning & Changelog

RiskPolicy is versioned (currently v1.0)
Changes require a documented ADR (Architecture Decision Record)
All ADRs logged in repository with full rationale

Capital Preservation Algorithm (CPA)

CPA is a layered validation framework that governs how strategies move from research to live capital. Every step requires verifiable point-in-time evidence — no retrofitted data, no hindsight.

What is Point-in-Time Evidence?

SPA uses only data that would have been available on the simulation date. A protocol launched in 2023 is invisible to a 2022 backtest — no exceptions. This eliminates look-ahead bias, the most common cause of inflated backtest returns in DeFi.

Example: GMX launched Q3 2021. Any simulation dated before that launch treats GMX as non-existent, even if historical APY data was later published. The whitelist is date-gated per protocol. Each entry in the point-in-time whitelist carries a launch_date field — the backtest engine rejects any protocol whose launch date is after the simulation date.

4-State Gate System

Stage 01

Backtest Gate

Point-in-time simulation over historical on-chain data. CLEAN_INCLUDED sources only. No forward-looking inputs.

Stage 02

Pre-Paper Gate

Strategy tested on live market data with zero capital at risk. Formal approval before advancing.

Stage 03

Paper Trading

Full strategy run on virtual capital. Requires ≥ 30 clean evidence points via PaperEvidenceTracker.

Stage 04

Live Capital

Own capital only. Requires GoLiveChecker all 29 criteria pass (currently 28/29) + 7+ consecutive days READY + Owner manual review (ADR-002).

formal approval required at each gate

Source Quality Framework

State Meaning Examples
CLEAN_INCLUDED Full historical data, on-chain verifiable Aave V3, Compound, Morpho
PENDING Data found, under audit Morpho Steakhouse
RESEARCH_ONLY No historical data, model-based projections GMX exposure, Concentrated LP
SOURCE_NEEDED No data source identified yet Gold proxy, BTC pools

Why 86.97% Cash Drag?

In strict point-in-time mode across 2022–2026, most DeFi protocols had not yet launched or lacked verifiable on-chain data at the simulation date. CPA does not extrapolate or assume retroactive availability.

The result is a high cash drag — capital that cannot be deployed to a CLEAN_INCLUDED protocol is held as USDC. This is intentional: it is better to acknowledge limited deployment opportunity than to overstate historical returns using protocols that were not yet verifiable at the simulation date.

A 13% average deployed allocation (86.97% cash) is the honest answer for the 2022–2026 period. As CPA sources are audited and promoted from PENDING to CLEAN_INCLUDED, the deployable universe grows and cash drag falls.

Research vs Production Strategies

RESEARCH_ONLY RS-001 · RS-002

RS-001 and RS-002 are tagged RESEARCH_ONLY. Their APY figures are forward projections based on model assumptions — not verified historical data. They cannot be promoted to paper trading until a CLEAN_INCLUDED data source is identified and audited. Evidence points from research days score 0.3 (vs 1.0 for clean days).

CLEAN_INCLUDED S0–S9 (Balanced strategies)

Production strategies use only CLEAN_INCLUDED data sources. Each allocation target has on-chain verifiable APY history and a confirmed launch date. These are the strategies eligible for paper trading evidence accumulation (1.0 point per clean day, 1.5 per extreme-market day) and eventual live capital deployment.

Personal research project in paper validation — not investment advice, not a regulated service, not raising capital; results are simulated. Full disclaimer & risk disclosure →