BeraborrowMicro-cap

Beraborrow receives a B- risk grade (35/100) from Hindenrank, where lower scores indicate lower risk. Elevated risk — near-complete TVL collapse, minimal development activity, and underfunded stability pool make this protocol effectively abandoned with active exit liquidity risk for remaining depositors. Beraborrow is a Liquity v1 fork on Berachain that launched on February 6, 2025 (Berachain mainnet day one) and reached $423M TVL within 8 days via its novel PoL auto-compounding mechanism. As Berachain's ecosystem TVL collapsed 97%+ from its March 2025 peak, Beraborrow's TVL fell to approximately $384K by May 2026 — a 99.9% decline. The protocol has no confirmed exploits, but the near-complete TVL collapse and minimal development activity represent severe exit liquidity risk for remaining depositors. The POLLEN governance token has a $135K market cap.

The key risks identified for Beraborrow are: (1) Exit liquidity is critically low: with $384K TVL, the protocol is near-abandoned. If you deposit into Beraborrow, you may struggle to exit at fair value as NECT redemption mechanics can force-liquidate your den even if you are solvent. The stability pool required to absorb liquidations is likely underfunded. (2) The PoL flywheel that drove Beraborrow's growth has collapsed: Beraborrow's original value proposition was auto-compounding Berachain BGT emissions into CDP positions. As Berachain validator emission incentives for NECT liquidity pools dried up, this mechanism stopped generating yield, and TVL evaporated. (3) POLLEN governance can be controlled for almost nothing: the governance token has a $135K market cap. Acquiring enough vePOLLEN to influence protocol parameters requires minimal capital, creating governance attack risk. (4) Berachain-specific collateral is illiquid: iBGT, BEX LP positions, and Berps positions used as collateral have very thin secondary markets. In a forced liquidation scenario, the protocol may not be able to liquidate collateral at quoted oracle prices.

Beraborrow scores 35/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 11/20, Oracle Surface: 5/10, Documentation Gaps: 4/10, Track Record: 3/15, Scale Exposure: 0/10, Regulatory Risk: 2/10, Vitality Risk: 7/10. The highest risk area is Vitality Risk at 7/10.

Among 27 rated CDP protocols on Hindenrank, Beraborrow ranks #12 by safety (lowest risk score = safest). Its 35/100 risk score and B- grade place it in the middle tier of CDP protocols.

Beraborrow scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.