Podcast Ep.335——Creating Returns Without Hidden Risks… InfiniFi Ushers in the Era of Structured Stablecoins

Between stablecoins and money market yields, investors seeking higher returns are limited to opaque experimental pools and structured products. InfiniFi is precisely a protocol designed to fill this gap. Based on blue-chip DeFi and real-world asset (RWA) strategies, it offers a reliable stablecoin yield model through a clear tiered share structure and an on-chain payment reserve system.

The problem with traditional DeFi is that attempts to simultaneously satisfy yield, liquidity, and solvency often fail. Similar to the banking industry—especially as demonstrated by the 2023 Silicon Valley Bank (SVB) incident in the US—DeFi also cannot avoid liquidity crises when trust collapses. Recent failures of Stream’s xUSD and Elixir’s deUSD have fully exposed how fragile recursive leverage and opaque counterparty structures are.

To address these issues, InfiniFi adopts a senior/subordinate share tiered structure. After issuing the base token iUSD, users can choose highly liquid siUSD (priority shares) or liUSD (subordinate shares) with longer lock-up periods and greater risk exposure. siUSD offers yields beyond simple money markets, while liUSD, based on high-yield and risk-bearing structures, becomes the first line of defense in a loss absorption waterfall. This separation design, based on the same payment reserve investment portfolio, meets the needs of investors with different risk preferences.

At the architectural level, InfiniFi is a yield transformation layer built on top of major protocols like Pendle, Morpho, and Aave. Through a whitelist mechanism, only strategies that meet strict risk standards—such as no default history, collateral holding status, audit history, and redemption liquidity—can be deployed on-chain. Depositors’ payment reserves are managed separately within dynamically adjusted liquidity buffers and long-term strategies, designed to handle immediate redemption requests in stress scenarios through FIFO queues and DEX liquidity in parallel.

Real-world asset (RWA) management strategies are also robust. InfiniFi can incorporate RWA into its portfolio without structural changes. Tokenized private credit funds, government bond ladders, and other RWA products operate under the non-liquid share of liUSD, following predictable repayment schedules. Through this model, issuers can view InfiniFi as a trust-based fund distribution channel, while distributors gain diversified collateral and liquidity through structured product portfolios rather than holding individual RWA tokens.

According to Alea Research, InfiniFi is one of the few projects not exposed to high-risk products like xUSD and deUSD. Additionally, by 2025, its total value locked (TVL) has exceeded approximately $160 million, demonstrating rapid recovery capabilities during multiple crises, making it a highly successful risk filtering case. siUSD yields 7-10%, surpassing blue-chip money market products, while liUSD attracts secondary capital demand with an annualized yield of 10-12%.

Placing risk filtering at the core of its design, InfiniFi’s growth is not based solely on yield maximization but on a carefully crafted ability to decide “what to reject.” Whether this model can sustain its scalability in the future will determine if InfiniFi can become a sustainable gateway in the DeFi space.