Is Felix CDP Safe?
Risk Grade: B- (33/100)
Felix CDP is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — proven Liquity V2 design and professional audits provide strong fundamentals, balanced by Hyperliquid ecosystem concentration risk and untested rapid growth.
Felix CDP is a Liquity V2 fork on Hyperliquid L1 that lets users mint feUSD stablecoins against HYPE and BTC collateral with user-chosen interest rates. With rapid growth to $1B+ in total deposits across Felix products and audits from Dedaub and Coinspect, its B- grade reflects solid fundamentals from the Liquity V2 design offset by concentration risk in Hyperliquid ecosystem assets and rapid growth that may outpace risk calibration.
TVL
$39M
Mechanisms
5
Interactions
4
Value Grade
D
Key Risks for Felix CDP Users
Felix heavily depends on HYPE as collateral. If HYPE price crashes, mass liquidations on Felix could further push down HYPE price, creating a negative spiral that amplifies losses for borrowers.
Borrowers choose their own interest rate, but positions with lower rates are closed first when the system needs to maintain the feUSD peg. Setting a very low rate saves on borrowing costs but makes your position more vulnerable to forced closure.
Felix grew from zero to over $1 billion in deposits in 5 months. This rapid growth is impressive but means the system's risk parameters have not been tested through a full market cycle.
Top Risk Factors
- •Felix is a Liquity V2 fork on Hyperliquid L1, inheriting Liquity's proven design but deploying on a relatively new blockchain where the validator set and sequencer infrastructure are less battle-tested.
- •feUSD stablecoin depends on Hyperliquid's native HYPE token and BTC as primary collateral, creating concentration risk in a single ecosystem's assets.
- •Rapid growth from $0 to $1B+ total deposits across Felix products in 5 months signals strong adoption but also rapid expansion that may outpace risk parameter calibration.
- •Redemption pricing was adjusted post-audit to fix a hidden peg assumption; similar latent design issues may exist in other modified Liquity V2 components.
Risk Score Breakdown
Felix CDP's highest risk area is Vitality Risk (8/10). Here's how each dimension contributes to the overall 33/100 score:
Read the Full Felix CDP 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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