infiniFi
About
infiniFi is an on-chain fractional reserve protocol that lets stablecoin depositors earn yields above standard DeFi rates by choosing between fully liquid positions and time-locked commitments (1–13 weeks). The protocol automates maturity laddering — co-deploying liquid and locked capital across liquid farms and duration-matched illiquid assets — so both liquid and locked depositors earn returns above what the raw underlying assets would pay individually. It positions itself as "banking rebuilt for stablecoins," with all reserves verifiable on-chain and governance managed by depositors.
Where Does Yield Come From?
How infiniFi generates yield
Users deposit stablecoins (like USDC) and receive iUSD in return. That iUSD first goes into liquid (easy-to-withdraw) DeFi lending protocols such as Aave, earning a base return.
To earn higher yields, users can "stake" their iUSD and choose a locking period between 1 and 13 weeks. In exchange, they get a token called liUSD representing the locked position. Longer lock-ups earn a bigger time-multiplier, which matters for how the system divides up earnings later.
Self-laddering and fractional reserves
Because the protocol can see everyone's chosen lock-up duration on-chain, it automatically "ladders" the capital: it pulls money from liquid farms and redeploys it into illiquid (harder-to-withdraw) assets that match those durations — things like institutional credit funds (Fasanara, Maple), lending pools (Morpho, Spark), or structured products (Cap stcUSD).
Crucially, some of the money used for these illiquid investments comes from the liquid depositors as well — this is the fractional reserve part. The protocol keeps a certain reserve rate to ensure liquid users can still withdraw on demand.
How returns are split
All earnings from the total balance sheet are pooled together and then redistributed asymmetrically:
- Locked (illiquid) depositors get a share proportional to their deposit size times their time-multiplier. This means they earn above what the raw illiquid assets would pay on their own.
- Liquid depositors earn a blended rate that mixes liquid and illiquid returns. This beats what pure liquid products would give them.
The protocol runs on near-zero margin — automation replaces traditional banking roles and passes the returns directly to depositors. A small fee on interest flows to a treasury pool that is managed by Allocators (the governance system).
Extra features and risk management
A utility token is planned to provide extra emissions and loyalty multipliers.
On the risk side, the protocol has several safeguards:
- First-loss socialization: If losses happen, locked depositors absorb them first, proportionally to their voting power.
- Secondary-market backstop: A Curve stableswap pool helps if iUSD depegs from its target price.
- Automated insurance: A mechanism that grows each time a depeg occurs, strengthening the system over time.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
| The Spearbit audit report for infiniFi (purportedly from April 2025) is hosted behind an email-gated DocSend link with expired preview images and no accessible content, making it impossible to assess protocol safety from this document. | |
| The Spearbit audit report for infiniFi could not be retrieved because the DocSend document requires email-based access and is currently unavailable. Without the report content, no assessment of protocol safety can be made. | |
| The Spearbit audit document for InfiniFi could not be accessed due to access restrictions on the DocSend platform; no findings or security conclusions can be drawn from the unavailable material. | |
| The Spearbit audit report for InfiniFi (reportedly from October 2025) could not be retrieved because the DocSend-hosted document is no longer publicly available, so no security assessment can be made from this source. | |
| The audit report could not be accessed because it is behind a DocSend email-gate with signed expiring content URLs, making it unavailable for automated analysis. | |
| The Spearbit audit report for InfiniFi (listed as November 2025) is hosted on DocSend and was not accessible — the document viewer returned "Content unavailable" and the signed image URLs returned 403 Forbidden. No findings, severity counts, or remediation details can be extracted from this source. | |
| The audit document was inaccessible via DocSend (expired content or access restrictions), so no security assessment of the InfiniFi / Cantina audit can be made from this source. | |
| The audit report for InfiniFi (purportedly by Certora, circa May 2025) was stored on DocSend but is no longer accessible — signed image URLs have expired and the content is marked as unavailable, so no security assessment can be derived from this URL. | |
| The audit report at the provided DocSend URL is inaccessible (content unavailable / access denied), so no security assessment can be derived from it. | |
| The audit report is behind an authentication wall on DocSend and could not be accessed; no assessment of protocol safety can be made from this link alone. |
Backers
infiniFi raised $3 million in an oversubscribed pre-seed funding round, led by Electric Capital, with participation from Newform Capital, Kraynos Capital, Baboon VC, and several prominent contributors in decentralized finance (as announced in the "Introducing infiniFi" launch article, March 1, 2026). No subsequent funding rounds (seed, Series A, etc.) were mentioned on any page reviewed.
Legal
Status and notes
No imprint, terms of service, or privacy policy pages are accessible on the official website (infinifi.xyz) — /terms, /privacy, and /imprint each return 404. The whitepaper and docs mention "InfiniFi Labs" as the GitHub organization, the multisig is a 4/7 on Ethereum (etherscan.io/address/0x80608f852D152024c0a2087b16939235fEc2400c), and the lead is Rob Montgomery ([email protected]) per the DocSend deck. No corporate entity name, registered address, or legal jurisdiction is disclosed on any official source reviewed. The footer on the homepage shows "© 2026 infiniFi" with no company details.