infiniFi Locked iUSD (1week)

LIUSD (InfiniFi Locked iUSD) presents a stark dichotomy between its high-quality backing and a catastrophic failure in security protocols. The weighted score of 5.8 reflects strong fundamentals in Team and Governance (8.5/10), driven by support from Electric Capital and experienced founders, alongside a compelling Market Use Case (7.8/10) that addresses capital efficiency via on-chain fractional reserve banking. However, the evaluation is severely impacted by a Security score of 0/10 due to a reported $50 million exploit in February 2025 involving a rogue developer and unverified contracts. While the Active Development section suggests a post-incident pivot toward better hygiene with audits from Cantina and Certora, the development velocity remains low. The token functions as a yield-bearing receipt with decent value accrual mechanics, but the 'fractional reserve' model combined with the history of insider negligence creates extreme risk. Consequently, despite the theoretical strength of the model and team, the project remains in a precarious position where trust is still being rebuilt.