Is Origami Finance Safe?
Risk Grade: B- (33/100)
Origami Finance is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — automated leverage amplifies yield but creates dependency on external platforms and heightened vulnerability to rapid price declines.
Origami Finance automates leveraged yield farming on Ethereum through its lov (Leveraged Origami Vaults), which recursively borrow against yield-bearing tokens like wstETH on external platforms (Spark Finance, Morpho) to amplify returns. With $45M TVL, its B- grade reflects the dependency on external lending platforms and the risks of automated high-leverage positions, balanced by audited contracts and transparent operations.
TVL
$47M
Mechanisms
5
Interactions
4
Value Grade
D
Key Risks for Origami Finance Users
Your deposits are automatically leveraged by borrowing on external platforms like Spark Finance. If those platforms pause or change their rules, your leveraged position could be stranded or liquidated.
The vaults maintain high leverage to maximize yield. During sharp market drops, the automated system may not deleverage fast enough, potentially resulting in larger losses than a non-leveraged position.
The vault depends on multiple protocols (Origami, Spark, Morpho, Lido). A security issue in any one of these could affect your deposited funds.
Top Risk Factors
- •Leveraged Vaults (lov) automate recursive borrowing on external protocols (Spark Finance, Morpho), maintaining high LTV ratios. A sudden collateral price drop could trigger cascading deleverage that incurs significant slippage.
- •The protocol depends on external lending platforms for the borrow side of its leverage. If Spark or Morpho change parameters, pause markets, or experience exploits, lov vault positions could be stranded or liquidated.
- •Automated leverage management means users do not directly control when the vault levers up or down. During extreme volatility, the automation may not react quickly enough to prevent losses.
- •The lov vault architecture using wstETH collateral on Spark Finance creates concentrated exposure to both Lido (wstETH) and Spark, compounding smart contract risk.
Risk Score Breakdown
Origami Finance's highest risk area is Vitality Risk (6/10). Here's how each dimension contributes to the overall 33/100 score:
Read the Full Origami Finance 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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