Yearn raises Fluid risk score to Medium over sUSDai and LayerZero concerns
Yearn's risk team upgraded Fluid from a 1.4 (Minimal) to a 2.6 (Medium) risk level, publishing a detailed breakdown of the drivers behind the change.
- The core concern is sUSDai, a synthetic dollar backed by AI-hardware loans issued by USDai. Fluid holds roughly two-thirds of the total sUSDai supply with limited exit liquidity — 24h onchain volume is about 0.2% of market cap and the asset has traded as low as $0.796.
- The concentration was first flagged in April at 19.9%, reached 28.3% in May (prompting a 30% trigger), hit 30.6% on July 6, and now sits at 31.2%.
- sUSDai uses the same LayerZero yield-bearing wrapper pattern as wstUSR, a setup tied to $21M in bad debt on Fluid in March. The sUSDai OAdapter can mint canonical Arbitrum supply, and the 10M/hr limit is outbound-only.
- Collateralization (2.75 → 4.0), Dependencies (2.5 → 4.0) and Provability (1.0 → 2.5) scores all rose, partly because ~37% of lending TVL depends on offchain inputs. Yearn says the full report is public and notes Fluid has responded well since March.
Sources
- @0xfluid has responded well since the accruing bad debt in March. We hope that our concerns are overblown, but we stand by our scores. We are always happy to discuss our analysis further. Read the full report here: https://t.co/ku8lxZie0s Replying to their earlier post: If we can't verify the value of collateral onchain then the rate can read healthy right up until bad debt is realized. In this case, the collateral is offchain, until an admin manually write the data…x.com ↗
- If we can't verify the value of collateral onchain then the rate can read healthy right up until bad debt is realized. In this case, the collateral is offchain, until an admin manually write the data onchain. Provability risk increased from 1.0 → 2.5. Replying to their earlier post: The increase in USDai concentration also impacted the asset provability score. While fToken rates are onchain and climbing, ~37% of lending TVL depends on offchain inputs: USDai's hardware-loan NAV an…x.com ↗
- The increase in USDai concentration also impacted the asset provability score. While fToken rates are onchain and climbing, ~37% of lending TVL depends on offchain inputs: USDai's hardware-loan NAV and reUSD's admin-written share prices. Replying to their earlier post: The sUSDai LZ OAdapter can mint canonical Arbitrum supply, not only on mainnet. The 10M/hr limit is outbound-only and doesn't cap inbound minting. These findings lead to Collateralization and Depende…x.com ↗
- The sUSDai LZ OAdapter can mint canonical Arbitrum supply, not only on mainnet. The 10M/hr limit is outbound-only and doesn't cap inbound minting. These findings lead to Collateralization and Dependencies scores rising: 2.75 → 4.0 and 2.5 → 4.0. Replying to their earlier post: In isolation, the sUSDai concentration may be a minor issue. But what is key is that the token adopts the same LayerZero (LZ) yield-bearing wrapper pattern as wstUSR. This wstUSR setup caused $21M in…x.com ↗
- In isolation, the sUSDai concentration may be a minor issue. But what is key is that the token adopts the same LayerZero (LZ) yield-bearing wrapper pattern as wstUSR. This wstUSR setup caused $21M in bad debt on Fluid in March. Replying to their earlier post: We first flagged sUSDai concentration as a potential risk in April, when it was at 19.9%. By May it was 28.3%, so we set an explicit 30% trigger. That trigger fired on July 6 at 30.6%. Now the concent…x.com ↗
- We first flagged sUSDai concentration as a potential risk in April, when it was at 19.9%. By May it was 28.3%, so we set an explicit 30% trigger. That trigger fired on July 6 at 30.6%. Now the concentration is 31.2% and rising. Replying to their earlier post: Our main concern is with sUSDai. It's a synthetic dollar backed by AI hardware loans issued by @USDai_Official. Fluid holds ~2/3 of total sUSDai supply with limited exit liquidity. 24h onchain volume…x.com ↗
- Our main concern is with sUSDai. It's a synthetic dollar backed by AI hardware loans issued by @USDai_Official. Fluid holds ~2/3 of total sUSDai supply with limited exit liquidity. 24h onchain volume is about 0.2% of market cap, and the asset has traded as low as $0.796. Replying to their earlier post: Lets break down the @0xfluid risk score update from our risk team Fluid went from a 1.4 (Minimal) to 2.6 (Medium) risk level. There were a few factors that led to the change, so let's break it down…x.com ↗
- Lets break down the @0xfluid risk score update from our risk team Fluid went from a 1.4 (Minimal) to 2.6 (Medium) risk level. There were a few factors that led to the change, so let's break it down 🧵 https://t.co/OZxgxtJsxY Quoting @yearnfi: Yearn's risk team constantly reviews and releases new risk reports. Last week: - New @SkyEcosystem stUSDS report: 2.6 - Updated @0xfluid report: 1.4 -> 2.6 - Updated @centrifuge JAAA report (no change in score) All reports are public on Yearn's risk site https://t.co/foFxJdibdK https://t.co/gH6kR6eX3tx.com ↗
