Is Lolik Liquid Staking Safe?
Risk Grade: C (45/100)
Lolik Liquid Staking is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Higher risk — standard liquid staking mechanics but concentrated on a small new chain (Bahamut) with sparse documentation, no published audits, and minimal DeFi ecosystem for LST utility
Lolik is a liquid staking platform that lets users stake FTN (Fasttoken), ETH, and MATIC tokens to earn daily staking rewards while receiving liquid staking tokens that can theoretically be used in other DeFi activities. The majority of its approximately $30M in deposits is FTN staked on the Bahamut blockchain. Lolik acts as an intermediary between stakers and node operators, using a standard liquid staking model. However, the protocol has very limited public documentation, no publicly available audit reports, and operates primarily on Bahamut — a relatively new and small EVM chain with limited decentralization and DeFi ecosystem depth.
TVL
$0
Mechanisms
5
Interactions
3
Value Grade
D-
Key Risks for Lolik Liquid Staking Users
Most of Lolik's deposits are in FTN on the Bahamut blockchain, which is a small and relatively new chain. If Bahamut experiences technical issues or validator failures, your staked assets could be frozen or at risk.
There are no publicly available audit reports for Lolik's smart contracts. For a protocol managing $30M in user deposits, the absence of published security audits is a significant concern.
Liquid staking tokens from Lolik have minimal DeFi utility — the Bahamut ecosystem has very few protocols where you can actually use these tokens, making them effectively illiquid despite the name.
Top Risk Factors
- •Lolik's TVL is heavily concentrated on Bahamut, a relatively new and small EVM chain. Bahamut itself has limited decentralization, few validators, and a short track record, making chain-level risk the dominant concern.
- •Very limited public documentation, no published audit reports, and sparse technical details make independent risk assessment nearly impossible — the protocol operates largely as a black box.
- •FTN (Fasttoken) is the primary staked asset, concentrating exposure in a single token with limited liquidity and DeFi composability outside the Bahamut ecosystem.
How Lolik Liquid Staking Compares to Peers
Lolik Liquid Staking ranks #79 of 83 Liquid Staking protocols (bottom quartile — among the riskiest). At a risk score of 45/100, it's 13 points riskier than the sector average of 32/100.
Adjacent peers: Stroom (C, 44/100) is ranked just safer, and Crypto.com Liquid Staking (C, 45/100) is ranked just riskier.
See the full Liquid Staking sector leaderboard or the Lolik Liquid Staking vs Crypto.com Liquid Staking comparison.
Common Questions about Lolik Liquid Staking
Plain-English answers based on Lolik Liquid Staking's scores across Hindenrank's 8 risk dimensions. The highest-scoring (riskiest) dimension is Vitality Risk (9/10).
Has Lolik Liquid Staking ever been hacked or exploited?
Lolik Liquid Staking has a documented incident history that materially raised its risk grade — the track record dimension scored 12/15, near the high end of the scale. Past exploits, governance failures, or contract issues are baked into this rating. Anyone considering deposits should review the incident details before allocating capital.
How much money is at stake in Lolik Liquid Staking?
Lolik Liquid Staking currently holds a small TVL — exit liquidity is a real concern at this size. 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 Lolik Liquid Staking?
Hindenrank has identified specific collapse scenarios for Lolik Liquid Staking. The most prominent: "Bahamut Chain Failure and FTN Staking Freeze". The trigger condition is Bahamut chain experiences prolonged halt, validator collusion, or critical exploit that freezes all on-chain activity. 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 Lolik Liquid Staking regulated or insured?
Lolik Liquid Staking has low regulatory exposure on Hindenrank's framework (3/10). 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 Lolik Liquid Staking?
Hindenrank's retail-focused risk audit flagged: Most of Lolik's deposits are in FTN on the Bahamut blockchain, which is a small and relatively new chain. If Bahamut experiences technical issues or validator failures, your staked assets could be frozen or at risk. There are no publicly available audit reports for Lolik's smart contracts. For a protocol managing $30M in user deposits, the absence of published security audits is a significant concern. Liquid staking tokens from Lolik have minimal DeFi utility — the Bahamut ecosystem has very few protocols where you can actually use these tokens, making them effectively illiquid despite the name.
Should beginners deposit into Lolik Liquid Staking?
Lolik Liquid Staking's C grade puts it in the elevated-risk band. This is not a beginner-friendly protocol. Anyone depositing here should treat the position as speculative and avoid concentrating significant savings in it.
How does Lolik Liquid Staking compare to safer Liquid Staking alternatives?
Lolik Liquid Staking is one protocol in Hindenrank's Liquid Staking coverage. The safest Liquid Staking protocols on the leaderboard tend to share three traits: a long incident-free track record, conservative mechanism design, and high-quality public documentation. Compare Lolik Liquid Staking against the full Liquid Staking ranking before committing capital.
For the full 8-dimension score breakdown, the radar chart, and dependency graph, see the Lolik Liquid Staking risk report.
Read the Full Lolik Liquid Staking 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.
View Full Report →Dig deeper
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