Data Analysts screen any potential active strategies to be integrated into the Convex Index through a series of risk-assessments, ensuring any integrated active strategy improves the risk-adjusted performance of the index.
- Filter non-stable assets to avoid exposure to IL and volatile asset prices.
- Filter out the lowest APR listings to preserve yields
- Slippage (review of amplification coefficient)
- TVL (ensure sufficient TVL to reduce risk of sufficient exit liquidity)
- Review min volume required to reduce risk of mispricing from market inefficiency
- Review mechanics that maintain stablecoin peg with USD
- Assess exit strategies should a depeg or liquidity event arise