Summary
Ketju does not approve the EtherFi Borrowing Market: ether.fi’s documents call it “coming soon” while it holds real funds, and only ether.fi Cash customers may borrow. The market is an Aave v4 instance that ether.fi runs to back ether.fi Cash, its Visa card backed by crypto collateral. It has sound controls. Its price-cap adapter’s reset function is wired so that nobody can call it, “for us, for our multisig, for anyone,” in ether.fi’s words. Every public page about the product carries a “coming soon” banner. At this review, about $190M was supplied and about $25M borrowed on Optimism. That conflict between the stated status and the live activity is enough for Ketju not to approve it. Anyone may supply liquidity, but only ether.fi Cash account holders may borrow. We found no separate legal entity for this product.
Review triggers
- ether.fi updates its documentation to show the product’s live status, removing the “coming soon” banners
- ether.fi publishes a named legal entity for the Borrowing Market
- The borrow side opens beyond ether.fi Cash account holders, or ether.fi publishes the permissioned-borrow design as intentional and permanent, with its reasons
- ether.fi publishes and links the Certora or Paladin audit report, settling the conflict with DefiLlama’s record of no audits
Facts
- Verdict
- Not approved
- Type
- Other
- Chains examined
- OP Mainnet, Scroll
- Reviewed
- Last confirmed