The memo
REJECTED on inherited exposure. ERC-4626 vault infrastructure that automatically allocates deposits across curated DeFi strategies, marketed as letting users "participate in DeFi without becoming a DeFi expert" — which is a fair ambition and precisely our job to do instead. The problem is what it allocates INTO. Documented integrations include Morpho (curator counterparty risk, which we cap at 10% and only with Steakhouse) and PENDLE, which we rejected outright because its mechanics cannot be explained to a client in two sentences. A vault-of-vaults inherits every underlying verdict while hiding which ones are live at any moment — so a client we told "no Pendle" would hold Pendle exposure without either of us being able to say how much. Add cross-chain bridge risk on multi-chain vaults, and ASYNC WITHDRAWALS, which is exit friction by design. The general rule this establishes: we do not delegate allocation to another discretionary layer. That IS the service we are being paid for, and outsourcing it to an unaccountable automated allocator forfeits both the fee and the fiduciary position.
What would reopen the file
- n/a — rejected
Facts on file
- Verdict
- Rejected
- Exposure
- stable lending
- Chains examined
- Ethereum
- Memo version
- v1
- Reviewed
- Next review