Is Felix USDhl Safe?
Risk Grade: B- (31/100)
Felix USDhl is rated as moderate risk — some novel mechanisms, generally well-understood.
Deprecated — this stablecoin product was sunsetted in late 2025. M0 backing remains intact for redemptions, but no new positions should be opened. Remaining holders should exit via direct redemption.
Felix USDhl was a T-bill-backed stablecoin on Hyperliquid that distributed yield in WHYPE tokens to active traders and liquidity providers. The protocol officially sunsetted reward distributions on December 20, 2025, and directed users to USDH as a replacement — which itself was discontinued by Native Markets in May–June 2026. Approximately $1M in residual TVL remains from users who have not yet exited. The underlying M0 reserve backing is intact and redemptions are still possible.
TVL
$1M
Mechanisms
6
Interactions
5
Value Grade
C
Key Risks for Felix USDhl Users
Product is deprecated: Felix Protocol officially ended USDhl rewards in December 2025 and no longer actively develops this product. New positions should not be opened.
Migration path closed: Felix directed users to USDH as a replacement, but USDH itself was sunsetted by Native Markets in May–June 2026, leaving holders with no officially supported successor stablecoin.
Exit risk from thin liquidity: With only $1M remaining in Curve pools and secondary market liquidity, large exits could push the peg below $1. Direct redemption via M0 infrastructure is recommended for any significant position.
Top Risk Factors
- •USDhl is officially deprecated — Felix Protocol ceased reward distributions on December 20, 2025, and directed users to USDH; the stablecoin is no longer actively maintained or developed
- •USDH (the successor stablecoin Felix directed USDhl users toward) was itself sunsetted by Native Markets in May–June 2026, leaving no sanctioned migration path for remaining USDhl holders
- •Residual $1M TVL represents users who have not yet exited; Curve pool liquidity is thin and simultaneous redemptions could cause a temporary depeg before M0 reserves clear
- •M0 infrastructure dependency for remaining redemptions — users wishing to exit still rely on M0's operational status for on-chain reserve verification and settlement
How Felix USDhl Compares to Peers
Felix USDhl ranks #29 of 121 Yield protocols (top quartile — safer than most). At a risk score of 31/100, it's 7 points safer than the sector average of 38/100.
Adjacent peers: TermFinance Vaults (B-, 30/100) is ranked just safer, and Aera V2 (B-, 31/100) is ranked just riskier.
See the full Yield sector leaderboard or the Felix USDhl vs Aera V2 comparison.
Common Questions about Felix USDhl
Plain-English answers based on Felix USDhl's scores across Hindenrank's 8 risk dimensions. The highest-scoring (riskiest) dimension is Vitality Risk (10/10).
Has Felix USDhl ever been hacked or exploited?
Felix USDhl has a fairly clean operational history. The track record dimension scored 5/15, indicating minor or no significant incidents on record. A clean track record is a positive signal but it does not guarantee future safety, especially as protocol complexity grows.
How much money is at stake in Felix USDhl?
Felix USDhl currently holds under $1M in user deposits — small enough that liquidity events could affect exits. Smaller TVL means individual depositors carry a larger share of any loss event, and it can be harder to exit a position quickly during stress.
What's the worst-case scenario for Felix USDhl?
Hindenrank has identified specific collapse scenarios for Felix USDhl. The most prominent: "M0 Reserve Confidence Crisis". The trigger condition is Concerns about M0 Treasury bill reserve integrity or regulatory action against M0 infrastructure triggers loss of confidence in USDhl backing. Reading through the full scenario list on the protocol page is the single best way to understand the actual failure modes — generic "smart contract risk" is rarely the thing that takes a protocol down.
Is Felix USDhl regulated or insured?
Felix USDhl has low regulatory exposure on Hindenrank's framework (2/10). The protocol is structured in a way that minimizes counterparty and jurisdiction concentration, though regulatory risk in crypto can change rapidly. No DeFi protocol carries FDIC-style insurance — even with low regulatory risk, depositors are not protected in the way bank customers are.
What are the biggest red flags for Felix USDhl?
Hindenrank's retail-focused risk audit flagged: Product is deprecated: Felix Protocol officially ended USDhl rewards in December 2025 and no longer actively develops this product. New positions should not be opened. Migration path closed: Felix directed users to USDH as a replacement, but USDH itself was sunsetted by Native Markets in May–June 2026, leaving holders with no officially supported successor stablecoin. Exit risk from thin liquidity: With only $1M remaining in Curve pools and secondary market liquidity, large exits could push the peg below $1. Direct redemption via M0 infrastructure is recommended for any significant position.
Should beginners deposit into Felix USDhl?
Felix USDhl is rated B-, which is acceptable for users who understand the protocol's mechanism. Beginners should read the full risk breakdown and only deposit after they can articulate the top three failure modes. If you cannot explain how the protocol works, do not deposit.
How does Felix USDhl compare to safer Yield alternatives?
Felix USDhl is one protocol in Hindenrank's Yield coverage. The safest Yield protocols on the leaderboard tend to share three traits: a long incident-free track record, conservative mechanism design, and high-quality public documentation. Compare Felix USDhl against the full Yield ranking before committing capital.
For the full 8-dimension score breakdown, the radar chart, and dependency graph, see the Felix USDhl risk report.
Read the Full Felix USDhl 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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