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 (Core/Preserve 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 [2%, 40%] — 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 Max Yield 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 — 10+ adapters

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

RiskPolicy v1.0 Parameters

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

Parameter Value
TVL floor $500M minimum
Per-protocol cap 25% of portfolio
Tier 1 minimum allocation 60%
Cash buffer 5%
APY lower bound 2% (avoid dust yields)
APY upper bound 40% (sanity cap)
Monthly drawdown kill switch −5%
Max single-asset concentration 40%

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 compete on risk-adjusted performance. The tournament ensures only the best-performing approach gets capital allocation.

Participants

Multiple strategies run in parallel on paper

Scoring

Risk-adjusted APY (Sharpe-weighted)

Promotion

Top performers promoted to paper track record

Current Leader

Core strategy — current tournament winner

Strategy Profiles

SPA offers three strategy profiles: Preserve, Core, and Max Yield. Each has a distinct risk/return target and validation status.

Paper Tracked Core

Paper tracked since June 10, 2026. Verified performance data available on dashboard.

Validation Pending Preserve / Max Yield

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 20 / 26 pass

26 criteria must pass before live deployment.

Failing criteria visible in Dashboard → GoLiveChecker tab.

Go-live target: August 1, 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

Continue your due diligence

Risk Disclosure Fee Structure All Strategies

⚠ Risk Warning: Investing in crypto-assets and DeFi protocols involves significant risks, including complete loss of capital. Crypto-assets are highly volatile and unregulated in many jurisdictions. Past performance does not guarantee future results.

Paper Trading Disclosure: This platform is currently in paper trading mode. All performance data reflects simulated trading on a virtual $100,000 USDC portfolio since June 10, 2026. Simulated performance does not account for live slippage, liquidity impact, or smart contract execution risk. Go-live target: ~2026-08-01 pending all 26 GoLiveChecker criteria.

Regulatory Status: SPA is NOT regulated by ESMA, the EBA, or any national competent authority. This does not constitute investment advice, financial advice, or a solicitation to invest in any jurisdiction.

Restricted Jurisdictions: Not available to US Persons (as defined under Regulation S of the US Securities Act of 1933), or residents of Russia, Belarus, Iran, North Korea, Cuba, Syria, or other sanctioned jurisdictions. By accessing this service you confirm you are not a restricted person.

DeFi-specific risks: Smart contract vulnerabilities and exploits · Protocol insolvency · Stablecoin de-pegging · Oracle manipulation · Regulatory actions · Technology failure. Funds in DeFi protocols are not covered by any investor compensation scheme.

Not financial advice: Nothing on this website constitutes financial, investment, legal, or tax advice. Consult qualified professionals before making investment decisions.

Read the full Risk Disclosure →