Is Bonzo Finance Safe?
Risk Grade: B- (29/100)
Bonzo Finance is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — solid Aave v2 foundation with strong oracle redundancy, but Hedera ecosystem limitations and points-driven TVL create uncertainty about long-term sustainability.
Bonzo Finance is the largest lending and borrowing protocol on Hedera, forked from the well-established Aave v2 codebase. It enables over-collateralized lending of HBAR, HTS tokens, and stablecoins with triple oracle redundancy (Chainlink, Pyth, Supra). With ~$16M TVL and a points program driving user growth, it serves as Hedera's primary money market.
TVL
$16M
Mechanisms
6
Interactions
4
Value Grade
D+
Key Risks for Bonzo Finance Users
As the primary lending protocol on Hedera, its success depends on the broader Hedera DeFi ecosystem growing — limited liquidation infrastructure could be a problem during market stress
The protocol runs a points program to attract deposits, which means some TVL may leave once the incentive program ends
While based on the proven Aave v2 code, the adaptation to Hedera Token Service has been tested for less time than the original
Top Risk Factors
- •Single-chain dependency on Hedera limits DeFi composability and exposes the protocol to Hedera-specific risks
- •Relatively new deployment adapting Aave v2 to Hedera Token Service introduces potential compatibility edge cases
- •Limited DeFi ecosystem on Hedera constrains liquidation infrastructure and market depth
Risk Score Breakdown
Bonzo Finance's highest risk area is Vitality Risk (6/10). Here's how each dimension contributes to the overall 29/100 score:
Read the Full Bonzo Finance Risk Report
This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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