Is dForce Safe?

|Lending
B-

Risk Grade: B- (35/100)

dForce is rated as moderate risk — some novel mechanisms, generally well-understood.

High risk — hacked twice with the same bug class and the multi-chain deployment multiplies every vulnerability across 7+ chains

A lending and stablecoin protocol deployed across 7+ blockchains including Ethereum, Arbitrum, and BSC, managing about $100M in deposits. Its D+ grade reflects two separate hacks ($25M in 2020, $3.64M in 2025) and the amplified risk of running the same code on many chains.

TVL

$1M

Mechanisms

7

Interactions

5

Value Grade

D+

Key Risks for dForce Users

1.

dForce has been hacked twice. The same type of bug (reentrancy) was exploited both times, five years apart. A pattern of repeated exploits suggests deeper code quality issues

2.

The same code runs on 7+ chains. When the 2025 hack hit Arbitrum, the identical bug existed on Optimism too. One vulnerability means simultaneous losses on every chain

3.

The USX stablecoin depends on liquidation bots that vary in quality across chains. On smaller chains like KAVA, bots are slow or absent, so bad debt piles up and USX can lose its peg

Top Risk Factors

  • Two separate exploit incidents (2020 reentrancy for $25M, 2025 read-only reentrancy for $3.64M) demonstrate persistent smart contract security weaknesses
  • Multi-chain deployment across 7+ chains creates a vast attack surface where a single vulnerability can be exploited across all deployments
  • USX stablecoin depends on liquidation infrastructure quality that varies dramatically across smaller chains with thin DEX liquidity

Risk Score Breakdown

dForce's highest risk area is Track Record (10/15). Here's how each dimension contributes to the overall 35/100 score:

Mechanism Novelty0/15
Interaction Severity8/20
Oracle Surface2/10
Documentation Gaps5/10
Track Record10/15
Scale Exposure0/10
Regulatory Risk5/10
Vitality Risk5/10

Read the Full dForce Risk Report

This protocol has 2 collapse scenarios. 2 critical and 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.

View Full Report →

Related Lending Safety Analyses

Related Lending Investment Analyses

Ratings use Hindenrank's eight-dimension risk rubric. Lower score = lower risk. Grades range from A (safest) to F (riskiest). This is not financial advice.