Frequently Asked Questions

Notara is an independent analytics platform that provides transparent, real-time data about DeFi yield vaults across multiple protocols and blockchains. We aggregate data from various sources to help users research and compare vault performance and risk characteristics.

Our goal is to bring standardization and transparency to the DeFi vault ecosystem by providing consistent metrics, risk assessments, and performance tracking across different protocols.

No. Notara is an independent platform. We are not affiliated with, endorsed by, or partnered with any vault protocol, DeFi project, or blockchain network. Our analysis and ratings are produced independently based on publicly available data.

Notara is currently an independent project. We do not receive payments from protocols to list or rate their vaults. Our ratings and data are not influenced by any commercial relationships.

DeFi vaults are smart contracts that automate yield-generating strategies in decentralized finance. Users deposit assets into vaults, which then deploy those assets across various DeFi protocols to generate returns.

Vaults can employ different strategies including lending, liquidity provision, yield farming, and more complex strategies that combine multiple approaches. The vault manages the strategy automatically, handling tasks like compounding rewards and rebalancing positions.

Impermanent loss (IL) occurs when you provide liquidity to a decentralized exchange pool and the price ratio of the deposited tokens changes. The greater the price divergence, the more impermanent loss you experience.

It's called “impermanent” because the loss only becomes permanent if you withdraw your liquidity. If the price ratio returns to its original state, the loss disappears. However, in practice, prices often don't return to their original ratios.

Vaults marked with “No IL” in our filters involve strategies that don't expose you to impermanent loss risk, such as single-asset lending or stablecoin-only pools.

Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the US Dollar. Examples include USDC, USDT, DAI, and FRAX. Stablecoin vaults tend to have lower volatility but may also offer lower yields compared to vaults involving volatile assets.

Liquid Staking Derivatives are tokens that represent staked assets. For example, stETH represents staked ETH on Lido, and rETH represents staked ETH on Rocket Pool. LSDs allow users to earn staking rewards while maintaining liquidity. LSD vaults often involve strategies built around these liquid staking tokens.

We classify vaults into three risk tiers based on five key risk factors:

• Prime: Highest confidence vaults with established protocols, extensive audits, significant TVL, long track records, and transparent operations. Maximum 1 risk factor present.
• Core: Solid vaults with good fundamentals but may have some areas that are less established. 2-3 risk factors present.
• Edge: Higher-risk vaults that may be newer, less audited, or have other elevated risk characteristics. 4-5 risk factors present.

Learn more about our methodology

We assess vaults on five dimensions:

1. Protocol Maturity: How long the protocol has been operating and its track record.
2. Audit Status: Whether the protocol has been audited by reputable security firms.
3. TVL Size: Total Value Locked as an indicator of trust and liquidity.
4. Strategy Complexity: How complex the vault's strategy is and the associated risks.
5. Asset Volatility: The volatility characteristics of the underlying assets.

Performance grades compare a vault's returns against peer vaults within the same risk tier and asset category. Grades are based on percentile rankings:

• A+: Top 5% performers
• A: Top 5-15%
• B: Top 15-35%
• C: Middle 35-65%
• D: Bottom 35-65%
• F: Bottom 35%

Performance is evaluated over multiple time periods (7-day, 30-day, 90-day) with more weight given to longer periods for stability.

APR (Annual Percentage Rate) and APY (Annual Percentage Yield) are calculated based on historical vault performance. APR represents the simple annualized return, while APY accounts for compounding effects.

Our calculations are based on share price changes over time, which reflects the actual returns depositors would have received. We calculate returns over multiple periods (7-day, 30-day, 90-day) and annualize them.

Important: Past performance is not indicative of future results. APR/APY figures are historical and can change significantly based on market conditions.

The vault listing page provides several filtering options:

• Search: Filter by vault name, protocol, or asset
• Risk Tier: Filter by Prime, Core, or Edge tiers
• Chain: Filter by blockchain network
• Quick Filters: Toggle specific characteristics like Stablecoins, LSDs, Single Exposure, No IL, Audited, or High Confidence

Quick filters can be combined to narrow down vaults matching multiple criteria.

High Confidence vaults are Prime-tier vaults that also demonstrate consistent, solid performance (grade A or B). These represent the intersection of low risk and good returns, making them suitable for users prioritizing capital preservation alongside reasonable yields.

Vault data including TVL, APR, and share prices is updated regularly throughout the day. However, there may be delays between on-chain events and their reflection in our data. Risk assessments and ratings may be updated less frequently as they depend on factors that change more slowly (audits, protocol maturity, etc.).

We currently support major yield vault protocols across popular EVM-compatible blockchains including Ethereum, Arbitrum, Base, Optimism, and Polygon. We continuously work to add support for additional protocols and chains. The specific list of supported protocols is visible in the vault filters.

No. Notara does not provide financial, investment, legal, or tax advice.

All information on this platform is for educational and informational purposes only. Nothing on Notara constitutes a recommendation to buy, sell, or hold any asset or to engage with any vault or protocol.

You should always conduct your own research (DYOR) and consult with qualified financial professionals before making any investment decisions.

Read our full Disclaimer

While we strive for accuracy, we make no guarantees about the accuracy, completeness, or timeliness of any data displayed on Notara.

Data is aggregated from third-party sources and blockchain networks, which may contain errors. Our calculations and ratings may also contain errors in methodology or implementation. You should independently verify any information before relying on it.

Read our full Disclaimer

DeFi vaults carry significant risks including but not limited to:

• Smart contract risk: Bugs or vulnerabilities could lead to loss of funds
• Protocol risk: The underlying protocol could be exploited or fail
• Market risk: Asset prices can be highly volatile
• Liquidity risk: You may not be able to withdraw when needed
• Regulatory risk: Legal and regulatory landscape is uncertain
• Impermanent loss: For LP-based strategies

You could lose all of your invested capital. Only invest what you can afford to lose entirely.

No. A Prime rating indicates relatively lower risk compared to other vaults in our system, but it does not mean the vault is safe or guaranteed to perform well.

All DeFi investments carry substantial risk. Even Prime-rated vaults can experience losses due to smart contract exploits, market conditions, or other unforeseen events. Our ratings are subjective assessments based on our methodology and should not be the sole basis for any investment decision.