Leaderboard

How leaderboard rankings work

The dHEDGE Leaderboard aims to rank pools on risk-adjusted returns and assets under management (AUM).

The leaderboard shows all pools across all supported networks. You can filter by the network.

Pool Score

The default ranking on the leaderboard is assigned based on a score that is based on a pool's Sortino Ratio, adjusted for assets under management.

Eligibility

A pool doesn't receive a score until the following conditions are met:

• A minimum history of 28 days.

• An annual return of 20% adjusted for AUM over time.

Because the 20% target is adjusted by AUM, this means that this target return is continuously weighed against the pool value, and is influenced by new deposits, depending on the size of the deposit.

For example, being up 50% on a pool with $100 AUM may be canceled out by being down 10% after a $100,000 deposit. Performing well with this higher AUM will bring the score back up again.

Once eligible, a score is assigned, which increases ranking on the leaderboard, and approves the pool to receive Performance Mining rewards.

Score Explained

Once eligible for a score, the score is calculated as follows: Score = Sortino Ratio * SQRT(7 Day Average Pool Value)

Sortino Ratio measures risk-adjusted returns and is calculated from the time of the funding of the pool and is annualized.

The target return in the Sortino Ratio formula is set to 20%. The Sortino Ratio calculation has been modified to incorporate a pool's historical relative size. This means that more emphasis is put on performance figures when the total value of the pool is larger vs. smaller.

The Sortino ratio seen in a pool's stats is an adjusted Sortino Ratio using the adjustments described above.

Risk Factor

A pool's Risk Factor is a function of Downside Volatility, a measure used in the Sortino Ratio calculation. Risk Factor is 1 for a pool that has had very little Downside Volatility and 5 for a pool with high historical Downside Volatility.