Silk
SILK
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
SILK (Silk) is a privacy-preserving, basket-pegged overcollateralized stablecoin developed by Shade Protocol on Secret Network. While the protocol demonstrated consistent technical maintenance and multiple security audits (CertiK, Halborn, RD Auditors), it has suffered from persistent liquidity contraction, complex peg mechanics leading to multi-currency basket deviations, and a market capitalization falling below $100,000. Crucially, Team and Governance analysis indicates the protocol was affected by an Axelar-Secret IBC bridge exploit on June 10, 2026, which impacted approximately $600k of collateral backing, triggering an emergency freeze, an orderly wind-down of the protocol, and an active migration toward 'Feather' ($FTR). Per the deprecated/migrated token rule, this asset is being sunset in favor of the new token.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Silk (SILK)
Silk (SILK) is an overcollateralized, privacy-preserving stablecoin issued by Shade Protocol on Secret Network that is undergoing an orderly wind-down and migration toward Feather ($FTR). Built using Secret Network's SNIP-20/25 privacy standards and bridged to Osmosis, SILK is minted through collateralized debt positions on ShadeLend. Rather than pegging to a single fiat currency, SILK is indexed to a diversified multi-currency and commodity basket comprising USD, EUR, CAD, JPY, Gold, and Bitcoin to hedge against inflation, with governance managed by the Shade Protocol DAO and the SILK Assembly.
The protocol's codebase has undergone security audits by CertiK in August 2022, RD Auditors in March 2022, and Halborn Security in early 2025. In August 2024, a logic bug in the Shade Lend Stability Pool affecting 18-decimal token claims was resolved with zero capital loss. Economically, SILK has experienced peg deviations, including underpeg episodes in October 2023 and April 2024 where it traded roughly 6% below its basket valuation, necessitating manual interest rate adjustments by the DAO.
On June 10, 2026, the protocol was impacted by an Axelar-Secret IBC bridge exploit that drained approximately $4.67 million in assets and impaired roughly $600,000 of SILK collateral backing. This event triggered an emergency freeze and the ongoing sunsetting of the protocol in favor of the Feather ($FTR) migration. Prior to and following the incident, the asset experienced severe liquidity contraction, low daily trading activity, a market capitalization falling below $100,000, and a price drawdown of more than 50% from its all-time high of $2.03.