Is Hashnote Safe?
Risk Grade: C+ (41/100)
Hashnote is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — backed by the safest asset in the world (US Treasuries) but the custody chain and regulatory status add meaningful risk layers
A tokenized US Treasury fund (USYC) that lets you earn government bond yields on-chain. It manages $500M and is the primary backing for Usual's USD0 stablecoin ($700M). Its C grade reflects the concentrated counterparty risk where Hashnote's failure would cascade through USD0 into broader DeFi.
TVL
$500M
Mechanisms
5
Interactions
6
Value Grade
C
Key Risks for Hashnote Users
Usual's $700M stablecoin depends almost entirely on Hashnote's USYC. If Hashnote has an operational failure, USD0 breaks its dollar peg and triggers liquidations across every DeFi protocol that accepts it
Redeeming for actual dollars takes at least one business day because Treasuries settle on T+1. During a panic, you wait in line while the token price drops on secondary markets
If regulators decide USYC is an unregistered security, they can freeze the tokens and seize the underlying Treasuries. Your money could be locked indefinitely during legal proceedings
Top Risk Factors
- •USYC serves as primary backing for Usual's USD0 (~$700M), creating concentrated counterparty risk where Hashnote operational failure or Treasury depeg cascades through entire DeFi stablecoin ecosystem
- •T+1 redemption delay for underlying Treasuries creates bank-run risk during market stress; USYC can trade at significant discount while redemption queue builds, amplifying panic
- •Regulatory risk as tokenized Treasuries may be classified as unregistered securities; SEC enforcement could freeze all USYC tokens and underlying assets indefinitely
Risk Score Breakdown
Hashnote's highest risk area is Regulatory Risk (8/10). Here's how each dimension contributes to the overall 41/100 score:
Read the Full Hashnote 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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