3F
Summary
Ketju does not approve 3F under its class rule for leveraged loops: a depositor picks a tokenized real-world-asset vault and sets leverage of up to 17x on Morpho-powered lending vaults. The protocol coordinates flash loans, bridge facilitators and real-time liquidations. The return is a levered spread on a tokenized fund share. Holders lose money when the share is liquidated because the lending rate or the share price moves. We made no finding on how well 3F is run.
- 3F ships an unlevered product line that merits its own review
- 3F publishes a named audit and leaves private beta with a disclosed legal entity and terms
Ketju checks this memo every night and opens a review if its venues or files show a warning or a cited document changes. The first confirmation is due 2027-03-22.
Research
How it works
3F Labs describes the product this way: pick a tokenized real-world asset vault, set your leverage, and the platform ’handles the rest’. It says the platform does this by ’coordinating flash loans, bridge facilitators, and liquidations’, with leverage of up to 17x. The tracked pools are wrapped fund shares (wJAAA, wUSCC, wFALCONX) looped against stablecoin lending on Morpho. That is the recursive borrow-to-hold structure the class rule for leveraged loops covers.
Who controls it
The site states ’Private beta · Q2 2026 · Ethereum mainnet’ and lists an audits page, but the landing page names no auditor, and DefiLlama records no audit links. The wrapped fund shares carry the transfer controls of their issuers (Centrifuge, Superstate, FalconX). A liquidation therefore depends on selling a permissioned asset to an eligible buyer.
Withdrawals
About $6.6M sat in twelve pools when we reviewed it, against $37.7M of reported protocol TVL. Unwinding a levered position requires repaying the Morpho loan and selling or redeeming a permissioned fund share. The issuer’s redemption window limits that withdrawal, whatever the vault’s dashboard shows.
Comparison
Compared with an unlevered holding of the same tokenized fund, 3F adds a dependence on lending rates, the risk of liquidation and an operator still in private beta. The class rule decides, and a 3F product without recursive leverage would need its own memo.
Class rule
Ketju does not approve any protocol under the class rule for leveraged loops while the rule stands. The rule covers the structure and makes no finding about this protocol’s quality. It does not tell an advisor what a client should hold. The review triggers list the events that would lead Ketju to review the rule or this protocol again.
Sources
Each claim above comes from one of these sources. Where Ketju could not verify a number, the memo states that.
- 3F: product page and audits link · primary · accessed 2026-09-22
Supports: up to 17x leverage on tokenized RWA vaults, flash loans, bridge facilitators, liquidations, Private beta Q2 2026 Ethereum mainnet, 3F Labs - DefiLlama: 3F protocol data · secondary · accessed 2026-09-22
Supports: Leveraged Farming category, reported TVL, no audit links
The asset and the chain
This memo covers the protocol. A position also holds an asset and settles on a chain. Whichever of the three holds the most power over the position decides who can freeze it. These tables describe control and do not judge quality.
| Chain | Verdict | Freeze | What it can do |
|---|---|---|---|
| Ethereum | Approved | No freeze key | Ethereum has no sequencer, no upgrade key and no operator who can be compelled to act; rule changes require social consensus. |