Mountain Protocol

Mountain Protocol receives a C- risk grade (54/100) from Hindenrank, where lower scores indicate lower risk. D+ (historical rating): strong compliance masked critical single-entity and centralized-oracle dependency risks that ultimately materialized Mountain Protocol issued USDM, a yield-bearing stablecoin backed 1:1 by short-term US Treasury bills, operating from September 2023 until August 2025 when it was acquired by Anchorage Digital and wound down. USDM was the first regulated permissionless yield-bearing stablecoin: holders automatically accrued T-Bill yield (~5% APY at peak) via daily rebasing without needing to stake or lock tokens. The protocol was regulated by the Bermuda Monetary Authority (Class M license), required KYC only for primary users (minting/redemption), and held reserves in bankruptcy-remote segregated accounts with monthly third-party attestations. At its peak in early 2024, USDM reached ~$155M in circulating supply and was integrated into Curve, Morpho, and Balancer as yield-bearing collateral. Despite strong regulatory compliance and a clean security record (zero exploits, two OpenZeppelin audits), USDM's fundamental risk was complete dependence on Mountain Protocol as a single regulated entity — a risk that materialized when Anchorage Digital's acquisition triggered the orderly wind-down. The protocol is no longer active.

The key risks identified for Mountain Protocol are: (1) Protocol is fully wound down — USDM is no longer operational as of August 2025; this rating reflects historical risk profile for research and backtest purposes (2) Single regulated entity dependency: Mountain Protocol's corporate existence WAS the stablecoin — acquisition or regulatory action directly terminated the protocol (3) Manual centralized oracle controlled all user balances via daily reward multiplier updates — a compromised ORACLE_ROLE key could have drained all holdings (4) Regulation S restriction meant U.S. persons could only access USDM via secondary markets with no primary redemption rights

Mountain Protocol scores 54/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 20/20, Oracle Surface: 7/10, Documentation Gaps: 2/10, Track Record: 3/15, Scale Exposure: 0/10, Regulatory Risk: 9/10, Vitality Risk: 10/10. The highest risk area is Interaction Severity at 20/20.

Among 72 rated RWA protocols on Hindenrank, Mountain Protocol ranks #71 by safety (lowest risk score = safest). Its 54/100 risk score and C- grade place it among the riskier RWA protocols.

Mountain Protocol 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.