Bonzo FinanceMicro-cap

Bonzo Finance receives a C+ risk grade (42/100) from Hindenrank, where lower scores indicate lower risk. Severe risk — protocol suffered a $9.05M oracle signature bypass exploit in July 2026; core Lend product paused; $9M unrecovered; user position restoration contingent on Hedera Foundation credit facility. Not suitable for new capital until Lend relaunches with audited security and organic TVL is established. Bonzo Finance is the largest lending protocol on Hedera, forked from Aave v2. On July 11, 2026, an attacker exploited a signature verification flaw in the Supra oracle verifier to inflate SAUCE collateral prices by ~12 orders of magnitude and drain $9.05M in USDC and WHBAR. Bonzo Lend and Points are paused pending a Halborn audit of new redemption contracts; the Hedera Foundation has committed a credit facility to restore all pre-exploit user positions. The BONZO token launched on Kraken in April 2026 and governance remains inactive.

The key risks identified for Bonzo Finance are: (1) The protocol suffered a confirmed $9.05M oracle exploit on July 11, 2026; Bonzo Lend is paused, the attacker has not been apprehended, and drained funds remain unrecovered (2) Recovery of pre-exploit deposits depends entirely on the Hedera Foundation's credit facility — if that backstop is delayed or insufficient, depositors face direct losses (3) Supra left Hedera's oracle verifier unpatched for 8+ days after fixing the same vulnerability on 11 other chains, raising questions about third-party oracle vendor diligence specific to this ecosystem

Bonzo Finance scores 42/100 across eight risk dimensions: Mechanism Novelty: 0/15, Interaction Severity: 8/20, Oracle Surface: 5/10, Documentation Gaps: 2/10, Track Record: 15/15, Scale Exposure: 0/10, Regulatory Risk: 5/10, Vitality Risk: 7/10. The highest risk area is Track Record at 15/15.

Among 99 rated Lending protocols on Hindenrank, Bonzo Finance ranks #73 by safety (lowest risk score = safest). Its 42/100 risk score and C+ grade place it among the riskier Lending protocols.

Bonzo Finance scores 15/15 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.