Is ICHI Safe?

|DeFi
B-

Risk Grade: B- (31/100)

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

Moderate risk — proven concentrated liquidity management across multiple chains, but automated strategies can underperform during volatile markets and single-token deposits mask underlying LP exposure.

ICHI is a liquidity management protocol that lets you deposit a single token into automated vaults that manage concentrated liquidity positions on Uniswap V3 and 15+ other AMMs across 10+ blockchains. With $18M in TVL, ICHI simplifies the complexity of concentrated liquidity provision by handling rebalancing and fee collection automatically.

TVL

$17M

Mechanisms

5

Interactions

4

Value Grade

C-

Key Risks for ICHI Users

1.

Hidden impermanent loss: You deposit one token, but the vault creates a two-sided liquidity position. If the paired token moves significantly in price, you can lose value even though you only deposited one asset.

2.

Automated strategy risk: The vault rebalancing algorithm decides when and how to adjust your position. During volatile markets, these algorithms can make suboptimal decisions that result in losses for all depositors.

3.

Multi-chain surface area: ICHI operates across many blockchains, each with different security properties. A bug in the vault code could potentially be exploited on multiple chains simultaneously.

Top Risk Factors

  • Automated rebalancing algorithms manage concentrated liquidity positions; poorly tuned strategies or edge-case market conditions can cause significant impermanent loss for depositors
  • Multi-chain deployment across 10+ networks (Base, Hedera, Binance) increases smart contract surface area and introduces chain-specific risks
  • Single-token deposit vaults obscure the actual concentrated liquidity exposure, potentially misleading users about their risk profile
  • Vault strategies are algorithmically managed without individual user control; strategy errors affect all vault depositors simultaneously

Risk Score Breakdown

ICHI's highest risk area is Vitality Risk (8/10). Here's how each dimension contributes to the overall 31/100 score:

Mechanism Novelty3/15
Interaction Severity5/20
Oracle Surface2/10
Documentation Gaps2/10
Track Record6/15
Scale Exposure3/10
Regulatory Risk2/10
Vitality Risk8/10

Read the Full ICHI 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.

View Full Report →

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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.