InfiniFi - iUSD Staking
not rated yetInfiniFi is a DeFi protocol that replicates fractional reserve banking on-chain. Users deposit USDC to mint iUSD (pegged 1:1 to USD), then stake it into siUSD for liquid yield or lock it into liUSD for higher returns. The protocol deploys a fraction of reserves into DeFi vaults and tokenized private-credit funds while maintaining liquidity buffers for redemptions.
How InfiniFi and iUSD staking work:
- Deposit USDC to mint iUSD at a 1:1 ratio
- Stake iUSD into siUSD (liquid tranche) for liquid yield with instant redemption
- Or lock iUSD into liUSD (locked tranche) for higher yield with a 1–13-week lock-up
- Reserves are deployed mainly into tokenized private-credit and trading funds (Fasanara, New Silver, FalconX), f(x) fxSAVE, and Spark sUSDC as the liquid buffer
- A loss waterfall protects conservative depositors: liUSD absorbs losses first, then siUSD, then base iUSD
- Farm allocations are published on-chain, but most underlying assets are off-chain loans and funds
InfiniFi was funded in a pre-seed round led by Electric Capital, New Form Capital, Kraynos Capital, and BaboonVC, with individual investors including Frax founder Sam Kazemian and DeFi Dad. In September 2026 infiniFi raised a further $3M+ seed round, again led by Electric Capital, bringing total funding above $6M.
Basic Information
Fundamentals
TVL
APR
Statistics
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Liquidity
Not calculated yet
Liquidity analysis will be available soon
Strategy
- Deposit USDC to mint iUSD
- Connect your wallet and deposit USDC on Ethereum (or Base, via infiniFi's cross-chain "Outland" vaults)
- Receive iUSD at a 1:1 ratio — a receipt token representing your deposit
- Base iUSD does not generate yield on its own
- Stake iUSD into siUSD (liquid tranche)
- siUSD is the liquid, yield-bearing version of iUSD
- Earns liquid yield with instant redemption — see the live yield statistics on this page
- Lower risk — protected by liUSD in the loss waterfall
- Earn yield from DeFi strategies
- Protocol deploys reserves into Spark sUSDC (liquid) and illiquid farms — Fasanara's tokenized credit and arbitrage funds, New Silver real-estate loans, FalconX institutional lending, and f(x) fxSAVE
- Capital allocation heavily favors liUSD, with siUSD receiving a smaller share
- Blending liquid and locked capital into duration assets increases capital efficiency
- Redeem anytime
- Unstake siUSD back to iUSD at any time (liquid tranche has no lock-up)
- Redeem iUSD for USDC — subject to reserve liquidity
- Alternatively, lock siUSD for 1-13 weeks for boosted yields via multipliers
Yield Source
InfiniFi generates yield by deploying a fraction of deposited USDC into DeFi vaults and tokenized off-chain credit and trading funds. The fractional reserve model allows the protocol to allocate capital more efficiently than fully-reserved alternatives, driving higher system-wide returns.
Primary yield sources:
- Spark sUSDC (liquid farm): USDC savings yield from Spark — the main liquid buffer for redemptions
- Fasanara mGLOBAL and Genesis (illiquid farms): Tokenized funds from Fasanara Digital — an asset-backed lending fund (the largest single allocation) and a digital-asset arbitrage fund
- New Silver (illiquid farm): Short-duration US residential investment-property loans from a private lender
- FalconX Institutional (illiquid farm): Lending to KYC'd hedge funds, market makers and trading firms through FalconX's prime-brokerage program
- f(x) fxSAVE (illiquid farm): f(x) Protocol's delta-neutral stability-pool vault
Yield distribution by tranche:
- siUSD: Liquid tranche — receives a smaller share of strategy returns; prioritizes accessibility and lower risk
- liUSD: Locked tranche — receives the majority of strategy capital allocation; higher yield compensates for lock-up commitment
- Locked siUSD: Lock siUSD for 1-13 weeks for an additional yield boost via multipliers
The fractional reserve model means not all deposits are deployed — a portion remains in reserve to support redemptions and maintain liquidity buffers, which are fully transparent on-chain.
Strategy Limits
Deterministic Constraints
- siUSD yield is lower than liUSD's — the liquid tranche receives less capital allocation
- Redemption depends on reserve liquidity — if reserves are heavily deployed, redemption may be delayed
- Only USDC is accepted as deposit collateral
- Core contracts live on Ethereum mainnet; Base and Monad deposits route through cross-chain "Outland" vaults that hold iUSD mint/burn authority
Probabilistic Constraints
- Fractional reserve model means not all deposits are backed 1:1 at all times — a bank-run scenario could exhaust reserves
- Yield depends on underlying farm performance — mostly off-chain credit and trading funds (Fasanara, New Silver, FalconX) plus f(x) fxSAVE and Spark
- Loss waterfall protects siUSD but does not eliminate risk — extreme losses could cascade through all tranches
- Protocol is pre-TGE (TGE announced for Q4 2026) with governance still evolving
Underlying Assets/Allocations
Risk Analysis
not rated yetPotential Risks
Based on infiniFi's risk disclosures and protocol documentation, the following risks are associated with iUSD staking:
- Fractional Reserve / Bank Run Risk - Not all deposits are backed 1:1; simultaneous mass redemptions could exhaust reserves before all depositors can withdraw
- Underlying Strategy Risk - Reserves sit in Fasanara, New Silver, FalconX, f(x) fxSAVE and Spark; a default, gate or exploit at any of them could impair reserves
- Fund-Manager Concentration Risk - Roughly half of reserves sit in a single tokenized credit fund (Fasanara mGLOBAL); its performance and redemption terms directly drive infiniFi's yield and liquidity
- Smart Contract Risk - Despite Spearbit and Cantina audits, the Cantina competition received 592 findings on 2,417 lines of code, indicating a high density of potential issues
- Loss Cascade Risk - While the waterfall protects siUSD, extreme losses could cascade through liUSD → siUSD → base iUSD, affecting all depositors
- Liquidity Risk - Illiquid farm allocations (tokenized credit funds, fxSAVE) cannot be instantly unwound — only ~10% of reserves sat in the liquid Spark farm in October 2026; redemption delays are possible during stress
- Governance Risk - Protocol is pre-TGE with no formal decentralized governance yet; centralized decision-making on farm allocation and reserve ratios
- Regulatory Risk - Fractional reserve stablecoin models may attract regulatory scrutiny as they blur lines between banking and DeFi
Risk Analysis (3rd Parties)
Summary
InfiniFi's iUSD staking (siUSD) offers a liquid yield-bearing stablecoin position powered by an on-chain fractional reserve banking model. The protocol deploys reserves mainly into tokenized private-credit funds (Fasanara, New Silver, FalconX), f(x) fxSAVE and Spark, with a loss waterfall protecting siUSD holders (liUSD absorbs losses first). Farm allocations are published on-chain, though most underlying assets are off-chain. The protocol has undergone Spearbit, Cantina and Certora reviews and is monitored by Hypernative. However, the fractional reserve model inherently means not all deposits are backed 1:1, creating bank-run risk. Roughly half of reserves sit in a single tokenized credit fund (Fasanara mGLOBAL), adding concentration risk. The protocol is pre-TGE (TGE planned for Q4 2026) with evolving governance. Users should carefully consider the trade-off between higher yields and fractional reserve exposure when sizing positions.
Multiple Audits: InfiniFi has undergone a $35k Cantina audit competition (592 findings submitted, April 2025), a Spearbit audit with follow-up reviews through December 2025, Certora formal verification (May 2025), a TestMachine penetration test (June 2025) and ongoing Three Sigma reviews. Hypernative provides ongoing monitoring, and a Cantina bug bounty is live.
Loss Waterfall Protection: The protocol encodes a hierarchical loss absorption structure: liUSD (locked) absorbs losses first, then siUSD (staked), then base iUSD. This mirrors senior-junior tranche splits in traditional finance, protecting conservative depositors.
On-Chain Allocation Transparency: iUSD supply, farm allocations and liquidity-buffer levels are published on-chain and via infiniFi's API. However, most reserves now sit in tokenized off-chain funds and loans (Fasanara, New Silver, FalconX) whose underlying assets cannot be verified on-chain.
Fractional Reserve Risk: Unlike fully-collateralized stablecoins, InfiniFi intentionally operates a fractional reserve — not all deposits are backed 1:1 at all times. In a bank-run scenario where many users redeem simultaneously, reserves could be exhausted before all depositors are made whole.
Off-Chain Credit Concentration: As of 1 October 2026, about 71% of infiniFi's reserves sat in tokenized off-chain credit and trading funds — Fasanara's mGLOBAL asset-backed lending fund (~49%) and Genesis arbitrage fund (~6%), New Silver residential bridge loans (~12%) and FalconX institutional lending (~5%) — with ~18% in f(x) fxSAVE and only ~10% in the liquid Spark sUSDC farm. Ethena, Pendle and Aave, previously the core farms, currently hold no allocation. A default or redemption gate at a single fund manager would hit reserves directly.
Pre-TGE Protocol: InfiniFi has not yet launched its governance token — its TGE has been announced for Q4 2026 (and it raised a further $3M+ seed round in September 2026), but it had not occurred as of early October 2026 and no official tokenomics have been published. The current points program and governance structure are still evolving. Early-stage protocols carry higher uncertainty about long-term design decisions.