ShMonad

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

ShMonad is a liquid staking protocol on Monad: users stake MON and receive shMON, a token that keeps earning staking and MEV rewards while it circulates. At the August 14, 2026 survey it held $8.9M in a single pool, well under our $100M materiality line. At that size an advised position would dominate the venue. Rejected on size: one practice advising 100 households moves $1M to $8M into a venue on the same research, and below $100M TVL that book becomes the exit crush. The file reopens if it grows past the threshold and stays there.

Kill criteria: the events that revoke this verdict
• TVL sustained above $100M for 30 days

The research file

Applicability to the surveyed record

ShMonad accepts MON and issues shMON as a transferable claim on pooled staked MON and accumulated rewards. The exchange rate grows from Monad validator rewards and FastLane-linked MEV revenue, while an onchain formula reallocates stake toward validators based on smoothed revenue. That establishes liquid staking as the surveyed mechanism.

Current observation and perimeter

The DefiLlama API read on 2026-08-15 classified ShMonad as liquid staking on Monad and reported approximately $8.66M TVL. The single-chain record remains far below the shared v1 $100M threshold and remains conditional on Monad chain eligibility.

Control and exit applicability

Returns depend on validator performance, staking rewards, MEV revenue, protocol commissions and the shMON/MON exchange rate. Traditional exit burns shMON, fixes the exchange rate and waits roughly four to five epochs before a second claim transaction; atomic exit uses a targeted liquidity pool and a utilization-based fee, so stressed immediacy depends on pool depth.

Why the class rule decides

The shared v1 below-materiality dossier controls. Reopen only after TVL sustains at least $100M for 30 days and Monad is eligible, then verify shMON backing and exchange-rate history, validator allocation and concentration, MEV dependencies, governance and upgrades, commissions, audits and incidents, slashing and loss allocation, traditional and atomic exit capacity, and named Monad staking alternatives.

Sources

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

• ShMonad — staker FAQ · primary · accessed 2026-08-15
  Supports: MON deposit, shMON receipt, exchange-rate rewards, staking and MEV yield, traditional and atomic exits
• ShMonad — parameters and fees · primary · accessed 2026-08-15
  Supports: unstaking epochs, atomic liquidity target, commissions, utilization-based exit fee, circuit breaker
• ShMonad — stake-allocation formula · primary · accessed 2026-08-15
  Supports: validator allocation, smoothed revenue, automatic reallocation, validator entry and exit
• DefiLlama — ShMonad survey record · secondary · accessed 2026-08-15
  Supports: current TVL, Monad, liquid-staking 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.