The memo
REJECTED on track record, which is the cleanest rejection in the registry because it requires no judgement call — only counting. Cumulative bad debt exceeding $100M across repeated incidents: May 2021, XVS price manipulated ~$70 to ~$140 on thin CEX liquidity and used as collateral to borrow ~2,000 BTC and ~5,700 ETH, leaving $95M+ bad debt; 2022, $14M from the Terra/LUNA collapse; 2022, caught in the BNB Chain bridge hack when stolen BNB was used to borrow $150M of stablecoins; Feb 2025, a donation attack on the zkSync deployment for $700k+; Sept 2025, a $13.5M phishing incident that forced a protocol pause and emergency governance vote; 2026, ~$2.15M bad debt from a Thena THE token exploit. Note the repetition of ORACLE-adjacent failures specifically. One incident is bad luck; six over five years with a recurring mechanism is a design and process characteristic. Compounded by settling on BSC, which we reject at the chain layer independently. Either reason alone is sufficient.
What would reopen the file
- n/a — rejected
Facts on file
- Verdict
- Rejected
- Exposure
- stable lending
- Chains examined
- BSC
- Memo version
- v1
- Reviewed
- Next review