Is Capyfi Safe?
Risk Grade: B (25/100)
Capyfi is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — battle-tested Compound v2 codebase with professional audits, balanced by LaChain ecosystem immaturity and limited liquidation infrastructure depth.
Capyfi is a Compound v2 fork deployed on LaChain, providing overcollateralized lending and borrowing with KYC/AML access controls, primarily serving the LATAM market. With $97M in TVL and audits from OpenZeppelin and Coinspect, its B grade reflects the battle-tested Compound v2 codebase offset by the risks of operating on a less-established blockchain with limited liquidation infrastructure.
TVL
$97M
Mechanisms
5
Interactions
4
Value Grade
D-
Key Risks for Capyfi Users
Capyfi runs on LaChain, a less-established blockchain with fewer active participants than Ethereum. During a market crash, there may not be enough liquidators to process underwater positions, potentially creating bad debt that affects depositors.
The protocol requires KYC/AML verification to access, which adds centralization. The entity managing the whitelist has significant control over who can participate.
While the codebase is based on the well-audited Compound v2, the specific deployment on LaChain has a shorter operational track record.
Top Risk Factors
- •Capyfi is a Compound v2 fork deployed on LaChain, a relatively niche blockchain with limited DeFi ecosystem depth, meaning liquidation infrastructure and oracle coverage may be less robust than on mainnet Ethereum.
- •The protocol includes KYC/AML whitelist-based access control, which adds centralization vectors and could create regulatory compliance risk depending on jurisdiction.
- •LaChain-specific deployment limits the pool of available liquidators and arbitrageurs, potentially leading to slower or failed liquidations during market stress.
- •While audited by OpenZeppelin and Coinspect, the protocol's relatively short track record on a less-established chain limits confidence in battle-testing.
Risk Score Breakdown
Capyfi's highest risk area is Regulatory Risk (5/10). Here's how each dimension contributes to the overall 25/100 score:
Read the Full Capyfi Risk Report
This protocol has 2 collapse scenarios. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
View Full Report →Considering an investment?