infiniFi

infiniFi remains outside the current firm shelf because it falls into the delegated-allocation policy class. This is a firm policy decision, not an adverse quality rating or a client trade instruction. The sections below retain the facts about its mechanism, control, losses, and exits.

Review triggers: events that reopen the 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

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-15.

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 invests the pooled balance sheet across registered liquid and illiquid farms instead of giving each depositor a fixed underlying position. Locked liUSD holders vote together on capital allocation, subject to duration-bucket restrictions. The FarmRegistry records each approved farm, its type, duration, and current allocation. Venue weights can change after deposit, and no client can enforce an advisor-approved allowlist or client-specific venue limits. The v1 delegated-allocation dossier therefore 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. The protocol remains below the size floor, and an individual review does not open until it clears that floor. A more basic policy class also 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 rely on managed basis trades, institutional borrowers, receivables, custodians, monthly NAV, or monthly redemption. The delegated portfolio therefore also carries the off-chain-credit dossier’s concerns about counterparties, valuation, and legal recovery.

Control and governance applicability

Every access-controlled contract delegates to InfiniFiCore, where the GOVERNOR serves as root administrator. 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 block later exposure to a rejected venue or keep a client-specific limit in place.

Loss, assurance and exit applicability

The protocol says locked liUSD absorbs losses first, followed by siUSD and then iUSD if losses exceed the junior buffer. Its risk disclosure covers underlying protocol loss, credit default, and off-chain NAV impairment. It also says direct redemption can become temporarily unavailable during a bank run. An immediate secondary exit may require a sale 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 checks of every underlying asset, liability, counterparty, or recovery.

Why the shared dossier decides

The v1 delegated-allocation rule rejects infiniFi without reviewing each farm. An advisor cannot document a stable set of approved venue exposures because governance and registry roles may change the portfolio after a client deposits. Direct positions in individually approved venues keep clear limits and review triggers. We could review a non-discretionary wrapper with immutable exposures separately. Reopen only if the product enforces a fixed, client-compatible allowlist and caps, and independent checks continuously verify position-level holdings, debt, counterparties, realized losses, and executable withdrawal liquidity.

Class rule

The delegated allocation 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.

• 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 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.