Wasabi

Wasabi receives a C+ risk grade (40/100) from Hindenrank, where lower scores indicate lower risk. Elevated risk — novel application of leveraged derivatives to highly volatile long-tail assets, with LP vaults exposed to extreme directional risk. Wasabi is a leverage trading protocol enabling long and short positions on long-tail crypto assets including memecoins and NFTs, using physically-settled perpetual contracts backed by ETH-ERC20 LP vaults. With $18M TVL, its C+ grade reflects the novel application of leveraged derivatives to highly volatile assets, creating risks that exceed typical perp DEX exposure.

The key risks identified for Wasabi are: (1) Wasabi enables leveraged trading on memecoins and NFTs — assets that can lose 90%+ of their value in hours. LP deposits act as counterparty and can lose value when traders profit. (2) The protocol uses physical settlement, meaning actual tokens must be held. For illiquid memecoins, this can create issues when large positions need to be closed. (3) An insurance fund exists to cover extreme losses, but memecoin crashes can create losses that exceed the fund's reserves.

Wasabi scores 40/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 8/20, Oracle Surface: 5/10, Documentation Gaps: 4/10, Track Record: 6/15, Scale Exposure: 0/10, Regulatory Risk: 5/10, Vitality Risk: 6/10. The highest risk area is Vitality Risk at 6/10.

Among 53 rated Derivatives protocols on Hindenrank, Wasabi ranks #32 by safety (lowest risk score = safest). Its 40/100 risk score and C+ grade place it in the middle tier of Derivatives protocols.

Wasabi scores 6/15 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.