infiniFi

infiniFi receives a B- risk grade (35/100) from Hindenrank, where lower scores indicate lower risk. Elevated risk — on-chain fractional reserve leverage and concentrated Ethena dependency, partially offset by transparent reserves and audited immutable contracts. infiniFi is a yield protocol on Ethereum that replicates fractional reserve banking on-chain, deploying deposits across Aave, Ethena, and Pendle to generate yield. Users can choose between liquid staking (siUSD) or locked higher-yield positions (liUSD). With $176M TVL and transparent on-chain reserves, it offers yields above typical money markets. Its C+ grade reflects the inherent risk of fractional reserve leverage and concentrated strategy dependency.

The key risks identified for infiniFi are: (1) infiniFi operates as an on-chain fractional reserve, deploying more capital into yield strategies than it holds in deposits (~$1.60 per $1 deposited). This amplifies returns but also amplifies losses if underlying strategies fail. (2) A transparent loss waterfall determines who absorbs losses first: locked liUSD holders, then staked siUSD holders, then plain iUSD holders. Higher-yield options carry genuine principal risk, not just yield reduction. (3) Heavy reliance on Ethena USDe for yield generation creates concentrated counterparty risk. If Ethena experiences issues, infiniFi's returns and reserve adequacy would be directly impacted.

infiniFi scores 35/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 8/20, Oracle Surface: 2/10, Documentation Gaps: 4/10, Track Record: 6/15, Scale Exposure: 3/10, Regulatory Risk: 3/10, Vitality Risk: 3/10. The highest risk area is Mechanism Novelty at 6/15.

Among 116 rated Yield protocols on Hindenrank, infiniFi ranks #49 by safety (lowest risk score = safest). Its 35/100 risk score and B- grade place it in the middle tier of Yield protocols.

infiniFi scores 6/15 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.