Pell Network

Pell Network receives a C+ risk grade (37/100) from Hindenrank, where lower scores indicate lower risk. Pell is an ambitious extension of the restaking model to Bitcoin that could capture significant market if the BTC DeFi ecosystem matures. The risks are substantial: slashing risk is real principal loss, AVS demand is unproven, and multi-chain complexity is genuinely high. For sophisticated investors who understand EigenLayer restaking risks and believe BTC-native assets will become significant collateral in DeFi. Not appropriate as a core holding for BTC investors who cannot accept principal loss. Pell Network extends EigenLayer's Ethereum restaking model to Bitcoin, allowing holders of BTC-native assets like WBTC, BTCB, and stBTC to restake and earn yield by providing cryptoeconomic security to external services (AVSs). Users deposit BTC-native assets, receive pSTK liquid receipt tokens, and earn yield from AVS fees. The protocol operates across multiple chains including BNB Chain and Merlin. About $200M in TVL and backed by several crypto-native VCs.

The key risks identified for Pell Network are: (1) Slashing is real principal loss — a buggy or malicious AVS can permanently destroy a portion of your restaked BTC (2) Restaking yield depends on AVS demand, which is nascent; current yields rely partially on PELL token emissions (3) Cross-chain complexity multiplies failure points compared to single-chain restaking (4) BTC restaking is entirely experimental — there are no prior examples of this cryptoeconomic model in production at scale

Pell Network scores 37/100 across eight risk dimensions: Mechanism Novelty: 8/15, Interaction Severity: 10/20, Oracle Surface: 4/10, Documentation Gaps: 4/10, Track Record: 5/15, Scale Exposure: 0/10, Regulatory Risk: 2/10, Vitality Risk: 4/10. The highest risk area is Mechanism Novelty at 8/15.

Among 26 rated Restaking protocols on Hindenrank, Pell Network ranks #9 by safety (lowest risk score = safest). Its 37/100 risk score and C+ grade place it among the safer Restaking protocols.

Pell Network 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.