infiniFi

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

infiniFi runs a fractional-reserve yield system on Ethereum, pooling liquid and illiquid deposits and allocating them across a governance-controlled farm registry. The current registry spans liquid DeFi venues, managed credit and basis products, receivables, and other illiquid strategies. A depositor cannot pin the resulting iUSD or siUSD claim to Ketju-approved venues or enforce advisor limits as allocations change. The DefiLlama API read on 2026-08-15 reported about $52.3M of TVL, but below-materiality is not the deciding class: delegated allocation is the durable v1 rejection, with off-chain-credit look-through.

Kill criteria: the events that revoke this verdict
• The product enforces an immutable or client-specific allowlist and per-venue limits covering only currently approved venues
• Position-level holdings, debt, counterparties, legal seniority, realized losses and executable withdrawal liquidity become continuously independently verifiable
• A separate non-discretionary wrapper fixes its exposures and cannot add or resize underlying venues after the client deposits

The research file

Mechanism and class applicability

A USDC depositor mints iUSD and may stake it for liquid-yield siUSD or lock it into duration-specific liUSD. infiniFi deploys the pooled balance sheet across registered liquid and illiquid farms rather than giving the depositor a fixed underlying position. Locked liUSD holders vote collectively on capital allocation, subject to duration-bucket restrictions, while the FarmRegistry records the approved farms, their type, duration and current allocation. Because venue weights can change after deposit and no individual client can enforce an advisor-approved allowlist and per-venue caps, the v1 delegated-allocation dossier applies directly.

Current observation and look-through

The DefiLlama protocol API read on 2026-08-15 reported approximately $52.3M of infiniFi TVL on Ethereum, still below $100M but no longer disposed of by size because a more fundamental class applies. The current official vault page lists liquid and illiquid integrations including Spark, Cap, FalconX Institutional, Fasanara Genesis and mGLOBAL, Maple Institutional and New Silver. Several depend on managed basis trades, institutional borrowers, receivables, custodians, monthly NAV or monthly redemption, so the delegated portfolio also inherits the off-chain-credit dossier’s counterparty, valuation and legal-recovery concerns.

Control and governance applicability

Every access-controlled contract delegates to InfiniFiCore, where the GOVERNOR is root administrator and separate roles can pause or unpause functions, change protocol parameters, manage operational roles, mint or burn receipt tokens, manage locks and restrict transfers. The security page identifies one-day and seven-day timelocks and a 4-of-7 multisig. liUSD voting directs allocations among registered farms, but collective voting and timelocked administration do not let an advised holder prevent later exposure to a rejected venue or preserve a client-specific limit.

Loss, assurance and exit applicability

The protocol documents first-loss absorption by locked liUSD, then impairment of siUSD and ultimately iUSD if losses exceed the junior buffer. Its risk disclosure includes underlying protocol loss, credit default and off-chain NAV impairment, and says direct redemption can become temporarily unavailable during a bank run; immediate secondary exit may require selling at a depeg or with slippage. The RedeemController queues requests FIFO when reserves are insufficient and relies on illiquid maturities, new deposits or profits to refill the queue. Published audits and monitoring cover protocol controls, not continuous reconciliation of every underlying asset, liability, counterparty or recovery.

Why the shared dossier decides

The v1 delegated-allocation rule rejects infiniFi without purporting to underwrite each farm: the advisor cannot document a stable set of approved venue exposures when governance and registry roles may alter the portfolio after the client deposits. Direct positions in individually approved venues preserve explicit limits and kill criteria; a non-discretionary wrapper with immutable exposures could be reviewed separately. Reopen only if the product enforces a fixed client-compatible allowlist and caps, and position-level holdings, debt, counterparties, realized losses and executable withdrawal liquidity are continuously independently verifiable.

Sources

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

• infiniFi Docs — whitepaper and fractional-reserve mechanism · primary · accessed 2026-08-15
  Supports: iUSD, siUSD, liUSD, fractional reserve, liquid and illiquid farms, duration mismatch
• infiniFi Docs — current vault registry · primary · accessed 2026-08-15
  Supports: current farms, liquid and illiquid allocations, managed credit, receivables, basis strategy, redemption terms
• infiniFi Docs — allocation voting · primary · accessed 2026-08-15
  Supports: liUSD governance, farm allocation voting, weighted voting, duration buckets
• infiniFi Docs — farm registry · primary · accessed 2026-08-15
  Supports: approved farms, farm type, duration bucket, current allocation
• infiniFi Docs — core roles and controls · primary · accessed 2026-08-15
  Supports: root governor, pause roles, parameter control, mint and burn roles, transfer restriction
• infiniFi Docs — contract security and governance · primary · accessed 2026-08-15
  Supports: audits, monitoring, one-day timelock, seven-day timelock, 4-of-7 multisig
• infiniFi Docs — slashing and loss waterfall · primary · accessed 2026-08-15
  Supports: realized impairment, liUSD first loss, siUSD impairment, off-chain NAV, recovery
• infiniFi Docs — redemption controller · primary · accessed 2026-08-15
  Supports: reserve sufficiency, FIFO queue, illiquid maturities, new-deposit funding
• infiniFi Docs — risk disclosures and bank-run exit · primary · accessed 2026-08-15
  Supports: temporary redemption unavailability, secondary-market discount, underlying losses, bad debt, loss socialization
• DefiLlama — infiniFi survey record, read 2026-08-15 · secondary · accessed 2026-08-15
  Supports: current TVL, Ethereum, yield category, survey perimeter

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.