mStable

mStable receives a C risk grade (45/100) from Hindenrank, where lower scores indicate lower risk. mStable's mPT-sUSDe vault offers compelling yield but carries significant risk from its leveraged, multi-protocol architecture. Suitable only for risk-aware DeFi users who understand the liquidation mechanics. Not appropriate for conservative stablecoin holders seeking safe yield. mStable's mPT-sUSDe vault offers ~15% APY by combining Ethena's sUSDe yield with Pendle fixed-rate tokens and Aave leveraged looping (up to 7.5x). This is a sophisticated yield strategy that stacks three DeFi protocols together. While the returns are attractive, the leverage means losses are amplified — a modest stablecoin depeg could trigger cascading liquidations. The original mStable protocol was rebuilt in late 2025 with this new vault architecture.

The key risks identified for mStable are: (1) High leverage (7.5x) means small price moves cause big losses (2) Depends on Ethena's basis trade working — if funding rates flip negative, yield disappears (3) Three protocols stacked together means three times the smart contract risk (4) New vault architecture with limited track record despite the mStable name

mStable scores 45/100 across eight risk dimensions: Mechanism Novelty: 10/15, Interaction Severity: 12/20, Oracle Surface: 5/10, Documentation Gaps: 4/10, Track Record: 5/15, Scale Exposure: 0/10, Regulatory Risk: 3/10, Vitality Risk: 6/10. The highest risk area is Mechanism Novelty at 10/15.

Among 116 rated Yield protocols on Hindenrank, mStable ranks #102 by safety (lowest risk score = safest). Its 45/100 risk score and C grade place it among the riskier Yield protocols.

mStable 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.