Moderate risk — automated leverage amplifies yield but creates dependency on external platforms and heightened vulnerability to rapid price declines.
Top Risks
1
Leveraged Vaults (lov) automate recursive borrowing on external protocols (Spark Finance, Morpho), maintaining high LTV ratios. A sudden collateral price drop could trigger cascading deleverage that incurs significant slippage.
2
The protocol depends on external lending platforms for the borrow side of its leverage. If Spark or Morpho change parameters, pause markets, or experience exploits, lov vault positions could be stranded or liquidated.
3
Automated leverage management means users do not directly control when the vault levers up or down. During extreme volatility, the automation may not react quickly enough to prevent losses.
4
The lov vault architecture using wstETH collateral on Spark Finance creates concentrated exposure to both Lido (wstETH) and Spark, compounding smart contract risk.
Risk Breakdown
Frequently Asked Questions
Is Origami Finance safe to use?
Origami Finance receives a B- risk grade (33/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — automated leverage amplifies yield but creates dependency on external platforms and heightened vulnerability to rapid price declines. Origami Finance automates leveraged yield farming on Ethereum through its lov (Leveraged Origami Vaults), which recursively borrow against yield-bearing tokens like wstETH on external platforms (Spark Finance, Morpho) to amplify returns. With $45M TVL, its B- grade reflects the dependency on external lending platforms and the risks of automated high-leverage positions, balanced by audited contracts and transparent operations.
What are the main risks of using Origami Finance?
The key risks identified for Origami Finance are: (1) Your deposits are automatically leveraged by borrowing on external platforms like Spark Finance. If those platforms pause or change their rules, your leveraged position could be stranded or liquidated. (2) The vaults maintain high leverage to maximize yield. During sharp market drops, the automated system may not deleverage fast enough, potentially resulting in larger losses than a non-leveraged position. (3) The vault depends on multiple protocols (Origami, Spark, Morpho, Lido). A security issue in any one of these could affect your deposited funds.
What is Origami Finance's risk score breakdown?
Origami Finance scores 33/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 6/20, Oracle Surface: 5/10, Documentation Gaps: 2/10, Track Record: 5/15, Scale Exposure: 3/10, Regulatory Risk: 3/10, Vitality Risk: 6/10. The highest risk area is Vitality Risk at 6/10.
How does Origami Finance compare to other Yield protocols?
Among 112 rated Yield protocols on Hindenrank, Origami Finance ranks #42 by safety (lowest risk score = safest). Its 33/100 risk score and B- grade place it in the middle tier of Yield protocols.
Has Origami Finance ever been hacked or exploited?
Origami Finance 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.