iUSD vaults

infiniFi is an Ethereum-based DeFi protocol that replicates the structure of fractional reserve banking on-chain. Users deposit USDC to receive iUSD, a 1:1 USD-pegged receipt stablecoin. The protocol then deploys those reserves into yield strategies — principally money-market protocols such as Aave and Fluid, as well as Pendle fixed-income markets — and distributes the resulting yield back to token holders.

iUSD holders can choose between two yield-bearing derivatives with different liquidity and risk profiles. Staking iUSD produces siUSD (liquid, lower yield), while locking iUSD produces liUSD (illiquid for a fixed term, higher yield). Capital in the siUSD tranche is deployed conservatively into low-risk money markets, while the liUSD tranche can access higher-risk, higher-return strategies. In the event of a loss, liUSD holders absorb losses first, then siUSD stakers, before plain iUSD holders are affected.

Reserve transparency

All reserve deployments are visible on-chain, giving users full visibility into the asset–liability composition of the protocol at any time, without relying on quarterly attestations. infiniFi had approximately $170M in circulating iUSD as of early 2026.

Sources

• Yield protocol infiniFi replicates fractional reserve banking onchain — Blockworks
• Understanding infiniFi — Nansen Research
• infiniFi app