KETJU Research

← The Register

other

WOOFi Earn

Rejected
Max sleeve
Reviewed
2026-08-15 · v1
Next review
2026-11-15
Chains
Arbitrum One · hybrid, OP Mainnet · hybrid, Avalanche · crypto-backed, Polygon PoS · hybrid, Base · hybrid, BNB Smart Chain · freezable, Mantle · freezable

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

WOOFi Earn permits its sPMM pool manager to borrow as much as 90% of Supercharger assets without collateral, deploy them as swap inventory, and hedge through WOO X before repaying principal plus a fixed rate. Depositors therefore underwrite manager credit, exchange hedge and settlement risk that cannot be independently reconciled on chain. The version-1 off-chain-credit dossier is dispositive regardless of the approximately $2.48M observed across nine chains on 2026-08-15.

The research file

Mechanism applicability

WOOFi Earn accepts single-asset deposits into Supercharger vaults, deploys idle balances into third-party yield strategies, and permits the WOOFi sPMM pool manager to borrow as much as 90% without collateral for swap liquidity. The manager hedges on-chain inventory through WOO X and owes principal plus a fixed borrowing rate back to the vault. The unsecured manager receivable and exchange-dependent hedge directly meet the shared v1 off-chain-credit dossier.

Current observation and perimeter

The DefiLlama protocol API read on 2026-08-15 classified WOOFi Earn as Yield and reported approximately $2.48M across Arbitrum, Avalanche, Optimism, Base, Polygon, BSC, Mantle, zkSync Era and Fantom. Fantom is added to the registry perimeter. WOOFi’s current site and user guide still display Earn vaults and deposit or withdrawal workflows, supporting an active rather than archived lifecycle.

Control and exit applicability

WOOFi explicitly acknowledges trust in the sPMM pool manager, which can borrow uncollateralized and manages hedges across on-chain pools and WOO X. Standard withdrawals enter a seven-day settlement cycle and depend on manager repayment; only a 10% reserve supports instant weekly withdrawals, with a 1% fee. External farming contracts, block reorg or hedge delay can produce loss or unavailable funds, and emergency recovery returns only the user’s proportional vault share.

Why the class rule decides

The defining risk is not only the roughly $2.48M scale: depositors become unsecured creditors of the pool manager while the corresponding WOO X hedge, exchange balances and manager capitalization are not independently observable from vault contracts. The shared v1 off-chain-credit dossier therefore controls. Reopen only with independently reconciled manager assets, liabilities and exchange hedges, enforceable credit protections, authority and custody evidence, audited loss allocation and successful stressed proposed-size withdrawals.

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
Arbitrum OneApproved · limits hybrid a single sequencer orders >99% of transactions and admin keys can upgrade bridge contracts on a ~7-day timelock.
OP MainnetRejected hybrid Ethereum forced inclusion limits sequencer censorship, but the Foundation and Security Council can co-sign an immediate upgrade before a client can exit.
AvalancheApproved · limits crypto-backed no party can freeze or seize C-Chain funds, but one vendor writes the only production client and Messari measured over a third of stake hosted on AWS.
Polygon PoSRejected hybrid a public validator set orders transactions, but a 5-of-9 multisig can instantly upgrade staking and canonical bridge contracts, while a 5-of-8 controls custom child tokens.
BaseApproved · limits hybrid Coinbase — one regulated US company — operates the only sequencer, and admin keys can upgrade bridge contracts within ~7 days.
BNB Smart ChainRejected freezable the validator set concentrates around one company, and the chain has been halted by decision.
MantleRejected freezable the team can push instant upgrades — there is no exit window a client could use.
The memo is public. The watching is the product: the terminal reads your clients’ wallets against this Register and flags the events above when they fire. $49 per advisor per month, first 14 days free. Start the trial.