Circuit

Circuit is not on the current firm shelf because its structure falls within the rejected-chain policy class. This is a firm-policy classification, not a negative quality rating or a client trade instruction. The facts about its mechanism, control, losses, and exits remain below.

Review triggers: events that reopen the verdict
• Chia passes a versioned Ketju chain review with no active chain review trigger
• An economically separate Circuit product develops meaningful liquidity on an approved chain

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-16.

The research file

Mechanism and chain applicability

Circuit documents an on-chain Chia collateralized-debt system in which users lock XCH and borrow BYC, a Chia Asset Token intended to track one dollar. Stability fees increase the debt, the Statutes price supplies a delayed XCH/USD valuation, and undercollateralized vaults enter Dutch-auction liquidation. BYC holders may use a separate variable-rate savings vault. Each state transition is a Chia coin spend.

Control and loss boundary

CRT governance can change constrained Statutes after proposal, veto, and implementation delays, including liquidation and interest parameters, while approved oracle announcers update price data. Circuit warns that keeper delays can impair liquidation and that failed auctions can exhaust collateral and leave bad debt, which the Treasury may cover by melting BYC. The exact voting concentration, announcer set and performance, launch audit, incident record, and Treasury capacity will not be reviewed until the protocol clears the chain gate.

Current observation and lifecycle

The DefiLlama API read on 2026-08-16 classified Circuit as CDP and reported approximately $0.19M, entirely on Chia. Its adapter reads the latest XCH collateral from Circuit’s current protocol API. Current documentation now states that Circuit is live on Chia mainnet, although one stale FAQ still says testnet with mainnet expected later. The live API, mainnet connection guide, and asset identifier resolve that documentation inconsistency in favor of active coverage.

Why the chain dossier decides

Circuit has no deployment or exit path outside Chia. The shared version-1 rejected-chain dossier therefore sets the outcome before any review of the collateral ratio, oracle, governance, auction, bad debt, or savings vault. Reopen only if Chia passes a versioned Ketju chain review or an economically separate Circuit product develops meaningful liquidity on an approved chain. Then perform the full CDP and proposed-size exit review.

Class rule

The rejected chain class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

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

• Circuit Docs — current mainnet protocol overview · primary · accessed 2026-08-16
  Supports: Chia, XCH collateral, BYC, mainnet, CRT governance
• Circuit Docs — collateral vault and repayment mechanics · primary · accessed 2026-08-16
  Supports: stability fees, repayment, collateral withdrawal, liquidation threshold
• Circuit Docs — liquidation and bad debt · primary · accessed 2026-08-16
  Supports: Dutch auction, keeper delay, bad debt, Treasury BYC melt
• Circuit Docs — statutes and oracle price · primary · accessed 2026-08-16
  Supports: mutable parameters, governance constraints, delayed oracle price, implementation controls
• Circuit Docs — Chia mainnet wallet connection · primary · accessed 2026-08-16
  Supports: Chia mainnet, BYC asset, live interaction
• DefiLlama adapter — Circuit protocol API collateral · secondary · accessed 2026-08-16
  Supports: protocol stats API, latest XCH collateral, Chia accounting
• DefiLlama — Circuit survey record · secondary · accessed 2026-08-16
  Supports: current TVL, Chia-only perimeter, CDP category

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.