{ "version": "1.1.0", "title": "Source-qualified DeFi first-loss and comparison record", "compiled": "2026-08-04", "scope": "A targeted review of disclosed incidents involving an onchain senior/junior waterfall or first-loss buffer, plus clearly labelled comparison and boundary cases. It is not a complete census of DeFi losses.", "figure": null, "notes": [ "The rows are not summed. They mix defaulted principal, temporary lockups, impaired positions, regulatory payments, unresolved exposure, a disclosed manager loss and gross debt exposure.", "Gross exposure is not treated as realized loss. A proposal or expected repayment is not treated as cash received.", "Sources are keys into docs/research/bibliographies/tranches-in-defi.md." ], "rows": [ { "date": "2022-07", "protocol": "Maple Finance (Orthogonal USDC pool)", "classification": "realized-loss case with first-loss buffer", "structure": "single lender class with pool-delegate and third-party Pool Cover", "event": "Babel Finance loan default and liquidation", "amounts": { "defaulted_principal_usd_m": 10.0, "loss_remaining_for_lenders_usd_m": 7.852146, "pool_balance_at_liquidation_usd_m": 244.0002374 }, "junior_in_front": "Maximum available Pool Cover was liquidated after Orthogonal added 1.0 million USDC before the default.", "outcome": "Pool Cover absorbed part of the default; 7.852146 million USDC remained for lenders, equal to about 3.2 percent of the pool.", "waterfall_status": "engaged, partial protection", "senior_or_lender_outcome": "lenders incurred a loss", "source_status": "verified from pool-delegate disclosure", "sources": ["orthogonal-babel-liquidation"] }, { "date": "2022-12", "protocol": "Maple Finance (M11 Credit USDC and wETH pools)", "classification": "realized-loss case with first-loss buffer", "structure": "single lender class with pool-delegate and other first-loss capital", "event": "Orthogonal Trading default after hidden FTX exposure", "amounts": { "defaulted_principal_usd_m": 36.0, "m11_usdc_pool_defaulted_principal_usd_m": 31.0, "m11_weth_pool_defaulted_principal_usd_m": 5.0, "projected_cover_plus_fees_recovery_usd_m": 2.5 }, "junior_in_front": "The USDC pool liquidated 463,650 USDC from M11 Credit and 151,933 USDC from Maple Treasury. The wETH pool liquidated 56.64 wETH from M11 Credit and 7.6 wETH from another provider. MPL withdrawn from Pool Cover was airdropped to affected lenders, not liquidated as first-loss capital.", "outcome": "The 2.5 million dollar public estimate combined Pool Cover and accrued fees and was not allocated cleanly between the USDC and wETH pools. It cannot be used as a pool-specific junior-coverage ratio.", "waterfall_status": "engaged, partial protection", "senior_or_lender_outcome": "lenders incurred substantial losses", "source_status": "verified, with the coverage-ratio limitation stated", "sources": ["m11-orthogonal-update", "theblock-orthogonal-default"] }, { "date": "2023-03", "protocol": "Idle Finance Yield Tranches (via Euler)", "classification": "zero-final-loss stress event", "structure": "explicit senior/junior tranches; senior first lien includes hack and loss-of-funds scenarios", "event": "Euler Finance exploit", "amounts": { "idle_funds_temporarily_locked_usd_m": 5.8, "euler_protocol_wide_theft_usd_m": 197.0, "euler_recovery_at_return_value_usd_m": 240.0, "final_idle_loss_usd_m": 0.0 }, "junior_in_front": "Junior tranches existed, and Idle's contracts specified that remaining assets would be distributed to senior holders first after a loss.", "outcome": "The attacker returned the assets before a final loss was allocated. Idle restored both tranches in full.", "waterfall_status": "not tested by a final loss", "senior_or_lender_outcome": "both tranches restored in full after external recovery", "source_status": "verified", "sources": [ "euler-war-peace", "idle-euler-exposure", "idle-euler-recovery", "idle-yt-edge-cases" ] }, { "date": "2023-07", "protocol": "Goldfinch (Tugende Kenya facility)", "classification": "non-tranched comparison case", "structure": "Senior Pool deal originated before tranched pools, with zero junior backers", "event": "Covenant breach after an unauthorized 1.9 million dollar intercompany loan", "amounts": { "facility_principal_usd_m": 5.0, "worst_reported_senior_pool_nav_writedown_percent": 3.95, "community_payment_usd_m": 1.0, "final_restructuring_recovery_usd_m": 0.46 }, "junior_in_front": "none", "outcome": "The community paid 1.0 million dollars in 2023. A completed restructuring later returned another 460,000 dollars directly to the Senior Pool in December 2024, including 250,000 dollars of loan recovery and 210,000 dollars of closing fees.", "waterfall_status": "no junior/senior borrower-pool waterfall to test", "senior_or_lender_outcome": "Senior Pool absorbed the remaining impairment after external support and recovery", "source_status": "verified as a comparison case", "sources": [ "goldfinch-tugende-update", "goldfinch-gip52-tugende", "goldfinch-tugende-final-recovery", "goldfinch-risk-review" ] }, { "date": "2023-10", "protocol": "Goldfinch (Stratos pool)", "classification": "realized-loss case with senior/junior waterfall and sponsor support", "structure": "about 15.96 million dollars from the Senior Pool and 3.99 million dollars from junior Backers", "event": "REZI (5.0 million dollars) and POKT (2.0 million dollars) positions expected to be written off", "amounts": { "pool_principal_usd_m": 20.0, "impaired_positions_usd_m": 7.0, "pool_repayment_to_senior_usd_m": 13.04, "sponsor_payment_to_senior_usd_m": 2.96 }, "junior_in_front": "Warbler Labs, Stratos management and other Backers held the junior tranche.", "outcome": "The repayment waterfall sent the 13.04 million dollar pool repayment entirely to Senior Pool principal. Warbler Labs supplied about 2.96 million dollars to complete senior repayment and separately backstopped eligible Backers.", "waterfall_status": "engaged and materially affected allocation; sponsor covered the remaining shortfall", "senior_or_lender_outcome": "Senior Pool made whole by priority recovery plus sponsor support", "source_status": "verified", "sources": [ "goldfinch-stratos-update", "goldfinch-stratos-repayment", "goldfinch-risk-review" ] }, { "date": "2023-12", "protocol": "BarnBridge SMART Yield", "classification": "regulatory termination, not a loss-allocation event", "structure": "explicit tokenized senior/junior tranches", "event": "SEC settlement, cease-and-desist and product termination", "amounts": { "historical_investments_usd_m_more_than": 509.0, "dao_disgorgement_usd_m_approx": 1.5, "founder_penalties_usd_m_total": 0.25 }, "junior_in_front": "Junior tranche existed by design.", "outcome": "The product ended for regulatory reasons. The payments were disgorgement and civil penalties, not losses allocated through the waterfall.", "waterfall_status": "not tested", "senior_or_lender_outcome": "not applicable", "source_status": "verified as a boundary case", "sources": ["sec-barnbridge-pr"] }, { "date": "2024-04", "protocol": "Goldfinch (Lend East pool)", "classification": "provisional loss case with senior/junior waterfall", "structure": "8.12 million dollars from the Senior Pool and 2.03 million dollars from junior Backers", "event": "Lend East said it expected to repay only about 4.25 million dollars of a 10.15 million dollar pool", "amounts": { "pool_principal_usd_m": 10.15, "senior_capital_usd_m": 8.12, "junior_capital_usd_m": 2.03, "borrower_proposed_or_expected_repayment_usd_m": 4.25, "implied_shortfall_usd_m": 5.9, "later_gfi_backstop_sale_proceeds_usd_m": 1.158025, "later_backstop_to_senior_usd_m": 0.75958589, "later_backstop_to_backers_usd_m": 0.39843911 }, "junior_in_front": "2.03 million dollars of Backer capital", "outcome": "The cited April 2024 source described an expected or proposed 4.25 million dollar repayment and later said those funds were being withheld; it did not document receipt. A separate GFI-funded backstop was paid in January 2025. Final borrower recovery remains unresolved in the reviewed sources.", "waterfall_status": "a 5.9 million dollar shortfall would exhaust junior capital and reach senior, but final cash recovery is not certified", "senior_or_lender_outcome": "provisional loss plus later external backstop", "source_status": "amount and final outcome unresolved", "sources": [ "goldfinch-lendeast-update", "goldfinch-lendeast-backstop", "goldfinch-risk-review" ] }, { "date": "2025-11", "protocol": "Stream Finance and connected lending/vault markets", "classification": "non-tranched contagion comparison case", "structure": "curated and lending vault exposures without a senior/junior capital stack", "event": "Stream disclosed a 93.0 million dollar manager loss and halted withdrawals; xUSD broke its peg", "amounts": { "stream_disclosed_loss_usd_m": 93.0, "analyst_estimated_gross_direct_debt_exposure_usd_m_approx": 285.0 }, "junior_in_front": "none documented", "outcome": "The 285 million dollar figure was an early, incomplete estimate of Stream-related debt exposure across at least seven networks, not verified realized loss. Rehypothecation also makes it unsuitable for addition to loan write-offs without reconciliation.", "waterfall_status": "no senior/junior waterfall to test", "senior_or_lender_outcome": "connected lenders and token holders faced losses and recovery claims", "source_status": "93 million dollar loss verified; 285 million dollars retained only as labelled gross exposure", "sources": ["theblock-stream-loss", "theblock-stream-exposure"] }, { "date": "2023-08", "protocol": "Centrifuge Tinlake (ConsolFreight CF4)", "classification": "unresolved senior/junior case", "structure": "TIN junior and DROP senior tranches", "event": "Hanhwa was in court-ordered liquidation before the pool update", "amounts": { "disclosed_dai_exposure_m": 1.792471, "issuer_junior_tin_dai_value": 387878.97, "alleged_post_notice_junior_withdrawal_dai_approx": 180000.0 }, "junior_in_front": "The issuer held more than 54 percent of TIN. A community post alleged that about 180,000 DAI of TIN was withdrawn after notice of liquidation.", "outcome": "No final loss allocation between TIN and DROP was found in the reviewed sources.", "waterfall_status": "unresolved", "senior_or_lender_outcome": "unresolved", "source_status": "exposure verified; withdrawal remains an allegation; closing loss not found", "sources": ["centrifuge-cf4-notice"] } ] }