Summary
Ketju does not approve Grove: it does not disclose how its money is allocated. Its "instant" liquidity claims also do not match the redemption terms of the credit it holds. Its audits are sound. Grove is the institutional credit arm of the Sky ecosystem, formerly MakerDAO. It lends USDS into named strategies, including $1B in the Janus Henderson Anemoy AAA CLO on Centrifuge. A retail depositor holds the same sUSDS token used across Sky, and the credit risk sits one step removed, on Grove’s own balance sheet. ChainSecurity, Spearbit and Certora have audited its controller, Basin and governance-relay contracts, and Sky governance keeps final admin authority over the contracts. Grove does not disclose what share of deposits sits in each strategy beyond the flagship CLO. Its own Basin documentation says "instant" settlement does not change the redemption terms of the illiquid credit beneath it. We could not reconcile the two. Grove also does not disclose where its operating entity is incorporated.
Review triggers
- Allocation percentages or dollar amounts by named strategy and counterparty are publicly disclosed
- Grove resolves and documents the mismatch between Basin's "instant" settlement and the redemption terms of the illiquid credit strategies beneath it
- The Grove Foundation's incorporation jurisdiction is publicly disclosed
- A consolidated third-party audit of the off-chain credit and RWA holdings, beyond the on-chain contracts, is published
Facts
- Verdict
- Not approved
- Type
- Other
- Chains examined
- Ethereum, Base, Avalanche, Plume Mainnet
- Reviewed
- Last confirmed