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ForgeYields

Rejected
Max sleeve
Reviewed
2026-08-15 · v1
Next review
2026-11-15
Chains
Starknet · hybrid, Ethereum · sovereign, Arbitrum One · hybrid, Base · hybrid, Monad · crypto-backed

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

ForgeYields is a cross-chain yield aggregator. Deposits enter gateways on several chains, get netted, and are placed into curated strategies through Veda BoringVaults. Protocol and external curators can rotate enabled strategies within Merkle permissions after a client deposits, while asynchronous exits depend on the resulting portfolio and cross-chain settlement. That delegated allocation is the fundamental mandate conflict; the approximately $1.25M DefiLlama TVL on 2026-08-15 is secondary. The version-1 delegated-allocation dossier controls and rejects the receipt at zero.

The research file

Mechanism applicability

ForgeYields mints fyTokens against deposits, batches and nets cross-chain flows through a clearing engine, and allocates vault capital among curated DeFi strategies. Offchain relayers propose movements, while Veda BoringVault managers enforce a Merkle allowlist of permitted protocols, methods and parameters. Protocol-managed and external curators can rotate exposures after deposit, so the holder cannot enforce the advisor’s venue-by-venue allowlist and caps. This is the continuing discretion addressed by the shared delegated-allocation dossier.

Current observation and perimeter

The DefiLlama protocol API read on 2026-08-15 classified ForgeYields as an Onchain Capital Allocator and reported approximately $1.25M across Starknet and Ethereum. ForgeYields’ current site separately reported about $1.81M and advertised live fyUSDC, fyETH and fyWBTC vault access across Ethereum, Arbitrum, Monad, Base and Starknet. The registry records those observed vault perimeters while keeping the reproducible DefiLlama value for the size test.

Control and exit applicability

The protocol-managed MVP and external curators can rotate strategies within Merkle-validated permissions; allocations inherit the risks of lending, wrappers, leveraged loops, Pendle and LP strategies plus bridge and execution dependencies. Deposits mint immediately, but redemption is asynchronous and queues until vault liquidity settles, with a stated 0.05% fee. Canonical bridges are the default, while documentation allows selected non-canonical bridges for some opportunities.

Why the class rule decides

The Merkle allowlist constrains calls but does not make the live portfolio advisor-selected: authorized curators can rotate among enabled lending, wrapper, leveraged, Pendle and LP strategies, and the client receives one aggregate claim. The shared v1 delegated-allocation dossier therefore decides regardless of whether the reconciled balance is $1.25M or $1.81M. Reopen only if a named vault enforces immutable adviser-compatible venues and caps, publishes independently verifiable holdings, debt and losses, and completes a proposed-size stressed queue exit; compare with direct positions in each approved venue rather than another allocator.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.

ChainVerdictGradeControl constraint
StarknetApproved · limits hybrid validity proofs and a regular exit window constrain control, but permissioned proposers and an instant emergency Security Council remain live dependencies.
EthereumApproved sovereign No sequencer, no upgrade key, no operator who can be compelled — rule changes require social consensus.
Arbitrum OneApproved · limits hybrid a single sequencer orders >99% of transactions and admin keys can upgrade bridge contracts on a ~7-day timelock.
BaseApproved · limits hybrid Coinbase — one regulated US company — operates the only sequencer, and admin keys can upgrade bridge contracts within ~7 days.
MonadApproved · limits crypto-backed the L1 has a public validator path, but its short production record, single initial client lineage, and Foundation-directed delegation keep stake and operations concentrated.
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