Hylo LSTs

Hylo LSTs receives a B risk grade (27/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — innovative oracle-free design with strong growth, but novel mechanics and short track record mean it has not yet been tested by market stress. Hylo LSTs is a Solana DeFi protocol offering two products: hyUSD, a stablecoin backed by Solana liquid staking tokens, and xSOL, which provides up to 4x leveraged SOL exposure without liquidation risk. The protocol is notable for operating without external price oracles, instead relying on on-chain LST redemption rates. With $19M in TVL and launched in June 2025, it features innovative but untested mechanics.

The key risks identified for Hylo LSTs are: (1) Novel and untested design: Hylo's zero-liquidation leverage and oracle-free pricing are innovative but have not been tested through a severe market downturn. New mechanics can behave unpredictably in extreme conditions. (2) SOL price exposure: hyUSD is backed entirely by SOL-based liquid staking tokens, meaning a large SOL price decline directly threatens the stablecoin's collateral backing. This is different from stablecoins backed by fiat or T-bills. (3) Short track record: The protocol launched publicly in June 2025 with less than a year of operation. While growth has been strong, newer protocols are inherently riskier until they survive multiple market cycles.

Hylo LSTs scores 27/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 5/20, Oracle Surface: 0/10, Documentation Gaps: 2/10, Track Record: 5/15, Scale Exposure: 3/10, Regulatory Risk: 2/10, Vitality Risk: 4/10. The highest risk area is Mechanism Novelty at 6/15.

Among 83 rated Liquid Staking protocols on Hindenrank, Hylo LSTs ranks #19 by safety (lowest risk score = safest). Its 27/100 risk score and B grade place it among the safer Liquid Staking protocols.

Hylo LSTs scores 5/15 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.