Collateral Tiers
Asset classification into Prime, Core, and Edge tiers with spot and collateral scores.
Assets are classified into three tiers based on liquidity, market capitalization, and track record. The tier determines the base score in the Asset Composition vector.
Tier Scores
| Tier | Spot Score | Collateral Score |
|---|---|---|
| Prime | 10 | 9 |
| Core | 8 | 6 |
| Edge | 5 | 3 |
Spot = the depositor's own asset (direct exposure). Collateral = asset backing a lending position (additional liquidation risk).
Prime Assets
Highest liquidity, longest track records, widest adoption.
ETH, WETH, USDC, USDT, WBTC, cbBTC, wstETH, rETH, weETH
Core Assets
Established but with smaller market caps or more complex mechanisms.
DAI, USDS, sDAI, sUSDe, USDe, GHO, FRAX, LUSD, LBTC, LINK, ARB
Edge Assets
Unlisted tokens, low-liquidity assets, newer wrappers, or anything not explicitly classified.
All unknown assets default to Edge tier.
How It Applies
For a single-asset vault (e.g., Aave USDC lending), the asset score is simply the spot score for the deposit asset.
For a multi-collateral vault (e.g., Morpho with multiple lending markets), the asset score is the weighted average across all collateral positions, with each position's score capped by its oracle quality.
Example: A Morpho vault lending against:
- 60% WETH collateral (Prime, score 9) with Chainlink oracle (10) → 9
- 40% LBTC collateral (Core, score 6) with Redstone oracle (7) → 6
Weighted asset score: 0.6 × 9 + 0.4 × 6 = 7.8