Sherpa

Sherpa is not on the current firm shelf because its structure falls within the delegated-allocation 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
• The vault immutably enforces a client-specific allowlist and per-venue limits covering only currently approved protocols
• Position-level holdings, debt, realized losses and executable withdrawal liquidity are continuously published and independently reconcile across Ethereum, Base and Monad

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

Managed strategy applicability

Sherpa describes a global USDC strategy that Hedgemony, a digital-asset fund, allocates among positive-carry capture, basis trading, volatility hedging, and other arbitrage opportunities. Algorithmic rebalancing and macro signals can change venues and positions after a client deposits. shUSD represents a pro-rata claim on the combined strategy, not an immutable USDC position in a named approved protocol. The structure therefore meets both policy tests for delegated allocation.

Cross-chain control and accounting

The same CREATE2 vault and wrapper system spans Ethereum, Base, and Monad. Operator-controlled ownerMint and ownerBurn functions adjust yield distribution and cross-chain liquidity. Offchain keepers advance cycles and synchronize global state, while Chainlink CCIP pools burn and mint shUSD between networks. Multi-RPC checks and emergency unpause reduce some operational risks, but they do not let a client enforce an advisor-approved list of underlying venues or a capital limit.

Current observation, audit and loss boundary

The DefiLlama adapter reads totalStaked plus totalPending USDC from the SherpaVault on all three chains. The 2026-08-16 API value was about $0.46M, predominantly on Ethereum. Cyfrin audited the documented vault contracts and reports that the listed findings were resolved. That audit does not cover every trading venue, hedge, bridge, offchain model, execution decision, or market loss inherited from Hedgemony’s live allocation. Sherpa itself states that strategy losses remain possible.

Exit and comparison

Deposits and withdrawals settle in cycles maintained by an offchain keeper. Standard withdrawals take one cycle and require reserves on the selected network. A cross-chain withdrawal can also depend on CCIP and synchronized accounting. Direct USDC positions in individually approved lending venues preserve protocol visibility and explicit caps, unlike aggregate shUSD. Reopen only if the vault immutably enforces the client mandate’s list of allowed venues and limits, and continuously publishes underlying positions, losses, and executable chain-level 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.

• Sherpa — vault and managed strategy overview · primary · accessed 2026-08-16
  Supports: Hedgemony manager, delta-neutral strategies, basis trading, volatility hedging, algorithmic rebalancing
• Sherpa — multi-chain contracts and operator controls · primary · accessed 2026-08-16
  Supports: Ethereum, Base, Monad, ownerMint, ownerBurn, CCIP, shUSD
• Sherpa — cycles and keeper dependency · primary · accessed 2026-08-16
  Supports: cycle settlement, offchain keeper, yield reporting delay, share price
• Sherpa — withdrawal flow · primary · accessed 2026-08-16
  Supports: pending withdrawal, network reserve, cycle exit, USDC settlement
• Sherpa — Cyfrin audit and findings · primary · accessed 2026-08-16
  Supports: Cyfrin, contract scope, owner controls, withdrawal findings, resolved findings
• DefiLlama adapter — SherpaEarn vault accounting · secondary · accessed 2026-08-16
  Supports: totalStaked, totalPending, USDC, Ethereum, Base, Monad
• DefiLlama — Sherpa survey record · secondary · accessed 2026-08-16
  Supports: current TVL, chain perimeter, Onchain Capital Allocator 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.