Custos

Custos is an on chain stablecoin risk oracle designed to provide transparent, real time risk signals for stablecoins used across the crypto ecosystem. Today, users and protocols often rely on fragmented analytics, delayed reporting, or centralized sources to understand the risk behind stablecoins. This makes it difficult to quickly detect issues such as liquidity deterioration, reserve instability, or peg deviation.
Custos solves this problem by publishing standardized risk scores directly on chain. The system collects several key data inputs including Proof of Reserves information, decentralized exchange liquidity data, and other financial indicators. This data is processed by the Custos risk engine, which evaluates metrics such as peg price deviation, Treasury bill yield deviation, and bank reserve concentration to produce a stablecoin risk score.
The workflow is powered by Chainlink Runtime Environment, which fetches external data, performs the risk calculation, and submits the resulting score to the Custos smart contract. Once updated, the contract emits an event and stores the risk score on chain.
Because the risk score is stored on chain, any external application such as wallets, analytics dashboards, exchanges, or DeFi protocols can read the data directly from the contract. This allows the broader ecosystem to integrate transparent risk intelligence and build safer financial systems around stablecoins.

Custos is built using a combination of smart contracts, an off chain risk evaluation engine, and Chainlink Runtime Environment to connect external financial data with on chain infrastructure.
The system begins by collecting external data inputs, including simulated Proof of Reserves data and decentralized exchange liquidity metrics retrieved from the DEX Screener API. This data is processed by the Custos risk engine, which calculates a stablecoin risk score based on several financial indicators such as peg price deviation, Treasury bill yield deviation, and bank reserve concentration.
The workflow is orchestrated using Chainlink Runtime Environment, which fetches the external data, performs the risk calculation, and securely submits the resulting score to the blockchain.
The risk score is stored in a Solidity smart contract that acts as the Custos risk oracle. When the oracle updates the score, the contract emits an event that external systems can monitor.
This design allows wallets, analytics platforms, exchanges, and DeFi protocols to read stablecoin risk scores directly from the blockchain, enabling transparent and composable risk intelligence for the ecosystem.