Is Anvil Safe?
Risk Grade: C (43/100)
Anvil is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Elevated risk — an innovative approach to DeFi credit with novel collateral management mechanisms, but short track record and untested fixed-term structures create meaningful uncertainty.
Anvil is a DeFi lending protocol that specializes in issuing collateral-backed letters of credit on Ethereum. Users deposit assets into vaults that back credit instruments, with time-based collateral pools offering fixed-term lending. With $40M in TVL, it brings traditional finance credit concepts to DeFi. The novel combination of letters of credit with DeFi composability is largely untested, and the protocol has less than 1 year of operational history.
TVL
$37M
Mechanisms
6
Interactions
5
Value Grade
C-
Key Risks for Anvil Users
Letters of credit in DeFi are a new concept — the protocol's approach to collateral management has not been tested through major market downturns
If the value of collateral drops quickly, the protocol may not liquidate fast enough to protect credit holders, especially in fixed-term pools
The protocol is less than a year old with limited track record compared to established lending protocols like Aave or Compound
Top Risk Factors
- •Novel collateral model: letters of credit issued against collateral vaults is an uncommon DeFi primitive with limited battle-testing
- •Oracle dependency: collateral valuation relies on price feeds to determine vault health and liquidation thresholds
- •Short track record: protocol launched in early 2025, less than 1 year of operational history
Risk Score Breakdown
Anvil's highest risk area is Vitality Risk (8/10). Here's how each dimension contributes to the overall 43/100 score:
Read the Full Anvil Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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