A recent report by Messari Research highlighted InfiniFi's structured yield model, which aims to mitigate structural risks in DeFi and rebuild depositor confidence. According to the report, InfiniFi differentiates itself in the stablecoin yield market with clear maturity dates and a transparent tranche structure, effectively mitigating liquidity risks and re-collateralization issues common in the DeFi space.
Traditional DeFi yield models have offered high returns by overleveraging or obscuring counterparty risk, leading to systemic failures, as seen with Streams' xUSD and Elixir's deUSD. Messari Research analyzed that these problems stemmed from the opaque structure of on-chain external fund managers in the pursuit of excessive yield, which led to cascading peg collapses.
To address this, Infinify offers senior (siUSD) and subordinated (liUSD) tranches, centered around iUSD, a stablecoin-based basic claim token, based on liquidity and risk preferences. siUSD is a liquid, immediately redeemable tranche, linked to blue-chip DeFi and real asset (RWA) strategies, offering above-average returns. LiUSD is a high-risk, high-reward structure designed to lock deposits for a fixed period and receive compensation for maturity and risk. Together, these two tranches achieve risk diversification and liquidity balance, and follow a clear loss-absorbing structure.
In particular, Mesari Research determined that Infinify secured depositor trust by establishing a reserve framework to prepare for systemic stress situations such as bank runs. In normal times, immediate repayment is possible, and even in the event of liquidity shortages, orderly withdrawals are possible through a first-in, first-out queue. This prevents unnecessary forced liquidations or losses, and allows for transparent risk exposure, free from the unstable off-chain structure.
In addition, Infinify adopts a curation-based approach that excludes high-risk strategies. Through its own underwriting process and an independent risk committee, Infinify operates a strategic whitelist, structurally mitigating the risks of re-collateralization and excessive leverage. In terms of RWA management, Infinify has a flexible architecture that integrates reliably with traditional financial assets through appropriate maturity mapping and reserve isolation strategies.
According to the report, these structural strengths are confirmed by the data. Infinify grew to $165 million in TVL in less than a year since its launch, with siUSD delivering an average APY of 7-10%, and liUSD delivering a yield of 10-12%. Furthermore, it provides a viable option for treasuries and allocators seeking a balance between cash flow and fixed income, contributing to the restoration of institutional investor confidence in DeFi.
The imbalance between maturity risk and yield, previously hidden in existing DeFi protocols, has sounded alarms in the market through repeated failures. Messari Research assessed that Infinify is ushering in a new stablecoin yield paradigm, based on the principles of risk curation and structured design, rather than simply maximizing yield. The market's challenge now is to design a system that supports structural evolution that enables scalable liquidity integration while maintaining risk control.
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