Sherlock

Sherlock receives a C+ risk grade (37/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — novel audit-plus-insurance model, but the pool is under-collateralized by design and audit failures directly threaten solvency A DeFi insurance protocol that audits smart contracts and then insures them against hacks, with $60M in its claims pool. You can deposit USDC to back those insurance policies and earn yield from premiums. Its B- grade reflects a fundamental tension: if Sherlock's audits miss bugs, it also has to pay for the losses.

The key risks identified for Sherlock are: (1) The $60M insurance pool covers far more than $60M in total risk. If multiple insured projects get hacked at the same time, the pool cannot pay everyone. Your USDC deposit gets slashed to cover claims (2) Sherlock only insures projects it audits. If its audit process has a blind spot, every insured project shares that same weakness (3) Insurance payouts max out at $10M per project. A $500M protocol paying premiums gets only $10M back if hacked

Sherlock scores 37/100 across eight risk dimensions: Mechanism Novelty: 8/15, Interaction Severity: 10/20, Oracle Surface: 0/10, Documentation Gaps: 3/10, Track Record: 5/15, Scale Exposure: 3/10, Regulatory Risk: 3/10, Vitality Risk: 5/10. The highest risk area is Mechanism Novelty at 8/15.

Among 68 rated DeFi protocols on Hindenrank, Sherlock ranks #36 by safety (lowest risk score = safest). Its 37/100 risk score and C+ grade place it in the middle tier of DeFi protocols.

Sherlock 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.