Digital Liquidity Stress Index

DLSI is a multi-dimensional composite that summarizes liquidity conditions in digital markets into a 0–100 stress score. It combines 6 sub-components—supply momentum, peg stability, risk premium, yield dispersion, funding rates, and DEX TVL—with dynamic weighting. Higher values indicate tighter market plumbing and elevated fragility; lower values suggest healthier conditions.

Last 30 Days

Historical Track Record

The DLSI has been computed daily since February 2024 (514+ observations). The table below shows how the index aligned with known market events — demonstrating that it correctly distinguishes genuine systemic stress from idiosyncratic noise.

Distribution (514 obs): min 15.08 · median 40.57 · 90th pctile 58.26 · max 87.05

How To Interpret

• 0–20 (Calm): Low structural stress; liquidity conditions are supportive.
• 20–40 (Moderate): Mild stress; conditions are mixed but not alarming.
• 40–60 (Elevated): Meaningful stress; risk management gains importance.
• 60–80 (High Stress): Significant tightening; fragile conditions likely.
• 80–100 (Crisis): Severe stress; systemic fragility and dislocations.

DLSI v2 composite methodology uses 6 weighted sub-components with dynamic weight redistribution when data sources have insufficient history. This metric is currently in beta.

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Underlying Components

Each sub-component is independently normalized to 0–100 (higher = more stress) then combined via weighted average. When a component lacks sufficient historical data, its weight is redistributed proportionally among the active components — so the composite is always fully weighted and comparable.

Methodology

The DLSI is analogous to the Bloomberg Financial Conditions Index or the Chicago Fed NFCI — but fully transparent. Every input, weight, and normalization step is documented and auditable. The composite uses a weighted average of independently normalized sub-components with dynamic weight redistribution when components lack sufficient history.

All inputs are daily granularity. The composite starts February 2024 (earliest date with 3+ overlapping components). Intraday stress spikes are captured only at daily close. Full methodology documentation is available in the DLSI v2 methodology spec.