{"investigation":{"slug":"ratio-finance","entity_name":"Ratio Finance","trust_score":22,"severity_base":null,"score_modifier":0,"confidence":0.62,"status":"published","content_type":"investigation","summary":"Ratio Finance is a defunct Solana-based collateralized debt position (CDP) protocol that allowed users to mint the USDr stablecoin against yield-bearing LP token collateral. The protocol raised $8.4 million across multiple rounds from investors including Alameda Research, Solana Ventures, and CMS Holdings, then launched its RATIO governance token in March 2022 at an all-time high near $2.24. The project suffered a private key compromise on or around December 3, 2022, after which the protocol's TVL fell to zero, the RATIO token lost over 99.9% of its value, and all social media activity ceased by December 2023.","sections":[{"content":"Ratio Finance is a Solana-native collateralized debt position (CDP) protocol modeled conceptually on MakerDAO. Users deposit stablecoin liquidity provider (LP) tokens — primarily from Saber and Raydium — into protocol vaults to mint USDr, Ratio's proprietary over-collateralized stablecoin. A distinguishing feature of the design is that deposited collateral continues to generate yield even while locked, theoretically creating loan positions with minimal or negative effective interest. The protocol's risk engine, called Ratio Risk Ratings (RRR), dynamically adjusts borrowing limits based on real-time assessment of each collateral pool's risk profile, a mechanism the team drew from traditional financial portfolio risk management. Users could borrow up to 97% of the assessed value of stable LP collateral. The RATIO governance token controls key protocol parameters including collateralization ratios and liquidation thresholds. The official documentation and website remain accessible but show no evidence of active development or maintenance as of 2024.","heading":"Protocol Overview","sources":[{"url":"https://docs.ratio.finance/","name":"docs.ratio.finance","type":"other","credibility":3},{"url":"https://medium.com/ratio-finance/ratio-finance-an-introduction-bbbc44add6e7","name":"medium.com","type":"other","credibility":3},{"url":"https://medium.com/ratio-finance/providing-liquidity-how-ratio-is-adding-utility-to-lps-on-solana-9da56f99401","name":"medium.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Ratio Finance conducted six fundraising rounds totaling approximately $8.4 million, with its Token Generation Event (TGE) concluding on March 25, 2022. The earliest round was a seed raise of $500,000 in July 2021 at $0.0625 per token, followed by a strategic round of $1.25 million at $0.125, and a private round of $500,000 at $0.20. Public sales conducted in February 2022 through the Republic crowdfunding platform raised a combined $6.15 million at $1.50 per token. Investors across these rounds included Alameda Research, Solana Ventures (the investment arm of the Solana Foundation), CMS Holdings, Rarestone Capital, Divergence Ventures, New Form Capital, and Raydium. The protocol was incubated by Rarestone Labs. Alameda Research's subsequent collapse and bankruptcy as part of the FTX implosion in November 2022 is widely considered to have exerted significant negative pressure on Solana ecosystem projects in which Alameda held stakes, though no public statement from Ratio Finance specifically addressed the Alameda collapse and its effects on the protocol.","heading":"Fundraising and Investors","sources":[{"url":"https://finance.yahoo.com/news/ratio-finance-raises-2-25-161500225.html","name":"finance.yahoo.com","type":"other","credibility":3},{"url":"https://icodrops.com/ratio-finance/","name":"icodrops.com","type":"other","credibility":3},{"url":"https://republic.com/ratio-finance","name":"republic.com","type":"other","credibility":3},{"url":"https://tracxn.com/d/companies/ratio-finance/__G0iMkebfYPuYwUSVcsvPN13K425LWow3G_YukgrP9WI","name":"tracxn.com","type":"other","credibility":3}],"severity":"medium"},{"content":"According to data recorded in the DefiLlama hacks and exploits database, Ratio Finance experienced a security incident on or around December 3, 2022, classified as a private key compromise of unknown method. The attack vector involved infrastructure-level access rather than a smart contract logic flaw, meaning the protocol's on-chain code was not directly exploited; instead, an administrative or deployer key controlling protocol privileges was compromised. No detailed post-mortem, official incident report, or independent security analysis attributing a specific dollar amount to the incident has been identified in publicly available sources. The incident was not covered by major crypto security publications such as Rekt News — where it does not appear on the published leaderboard — or The Block at the time of research. Following the incident, the protocol's total value locked (TVL) declined to zero and has remained there. The precise mechanism of the private key compromise, the identity of the attacker, and the total funds affected remain unverified from publicly available primary sources.","heading":"Security Incident — Private Key Compromise (December 2022)","sources":[{"url":"https://defillama.com/protocol/ratio-finance","name":"defillama.com","type":"other","credibility":3},{"url":"https://rekt.news/leaderboard","name":"rekt.news","type":"other","credibility":3}],"severity":"medium"},{"content":"The RATIO governance token launched at its Token Generation Event on March 25, 2022, with a public sale price of $1.50. The token reached an all-time high in the range of approximately $1.46 to $2.24 in late March 2022, coinciding with its launch. The total token supply is 100 million RATIO, of which approximately 2.1 million were reported as circulating at the time of CoinMarketCap data capture. As of research conducted in 2025–2026, the RATIO token trades at effectively $0, with a reported market capitalization of approximately $4,540 and a 24-hour trading volume of $0, indicating the token has become essentially illiquid. CertiK assigned the project a security score of 2.9 out of 10. The combination of the December 2022 security incident, the collapse of investor Alameda Research in November 2022, and the broader Solana ecosystem downturn in 2022 are consistent with the token's near-total loss of value, though no single verified public statement attributes causation to any specific factor.","heading":"RATIO Token Performance and Market Collapse","sources":[{"url":"https://coinmarketcap.com/currencies/ratio-finance/","name":"coinmarketcap.com","type":"other","credibility":3},{"url":"https://icodrops.com/ratio-finance/","name":"icodrops.com","type":"other","credibility":3},{"url":"https://www.bitgetapp.com/price/ratio-finance","name":"bitgetapp.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Ratio Finance was co-founded by Shimon Newman and Samiar Tehrani, both of whom have public LinkedIn profiles. Tehrani is listed on Crunchbase as co-founder of Ratio and has since been associated with Fibonacci Finance per his LinkedIn profile. Newman served as a co-founder with a background in business development. The team reportedly comprised more than 20 staff at its operational peak, including professionals with backgrounds at hedge funds, big-four consultancies, and other crypto projects. All identifiable social media activity from the official Ratio Finance accounts ceased by December 11, 2023, with no public updates, announcements, or team communications issued since that date. The protocol's TVL stands at zero and no active governance proposals or protocol upgrades are publicly visible. The protocol should be considered inactive or abandoned based on publicly available signals. The official website and documentation remain online but appear to be static legacy assets with no active maintenance.","heading":"Team and Operational Status","sources":[{"url":"https://www.linkedin.com/in/samiar-tehrani/","name":"linkedin.com","type":"other","credibility":3},{"url":"https://www.crunchbase.com/person/samiar-tehrani","name":"crunchbase.com","type":"other","credibility":3},{"url":"https://icodrops.com/ratio-finance/","name":"icodrops.com","type":"other","credibility":3},{"url":"https://twitter.com/RatioFinance","name":"twitter.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Ratio Finance has been flagged by on-chain investigator ZachXBT, whose investigations into Solana ecosystem protocols and associated actors have drawn attention to a pattern of Alameda Research-backed projects that suffered adverse outcomes following the November 2022 FTX/Alameda collapse. The specific nature and content of the ZachXBT flag pertaining to Ratio Finance has not been independently confirmed through a retrievable primary source at the time of this investigation. Multiple risk signals are independently observable without reference to any ZachXBT post: the protocol's TVL has been zero for an extended period; the RATIO token has lost over 99.9% of its value from its all-time high; a private key compromise was recorded in December 2022; social media activity ceased in December 2023; and a major investor (Alameda Research) became insolvent within weeks of the alleged exploit. The CertiK security score of 2.9/10 further underscores the protocol's assessed risk profile. These factors collectively represent a high-severity risk profile regardless of the specific content of any ZachXBT flag.","heading":"ZachXBT Flag and Risk Signals","sources":[{"url":"https://defillama.com/protocol/ratio-finance","name":"defillama.com","type":"other","credibility":3},{"url":"https://coinmarketcap.com/currencies/ratio-finance/","name":"coinmarketcap.com","type":"other","credibility":3},{"url":"https://icodrops.com/ratio-finance/","name":"icodrops.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Ratio Finance launched and operated within the broader Solana DeFi ecosystem during a period of significant sector-wide stress. Alameda Research, a seed-stage investor in Ratio Finance, collapsed alongside FTX in November 2022 in what U.S. federal prosecutors described as one of the largest financial frauds in American history. This collapse had systemic effects on the Solana ecosystem, reducing liquidity, depressing token prices, and undermining confidence in projects with Alameda affiliations. The Ratio Finance private key compromise occurred approximately three weeks after the Alameda/FTX bankruptcy filings. Whether the timing reflects coincidence, operational distraction, or deliberate targeting of a weakened protocol is not established by available evidence. The broader Solana DeFi environment in 2022 was also affected by the Raydium protocol exploit in December 2022, in which a private key compromise enabled an attacker to drain multiple liquidity pools — an incident structurally similar to what DefiLlama's records indicate occurred at Ratio Finance during the same month.","heading":"Solana Ecosystem Context and Contagion Risk","sources":[{"url":"https://finance.yahoo.com/news/ratio-finance-raises-2-25-161500225.html","name":"finance.yahoo.com","type":"other","credibility":3},{"url":"https://en.wikipedia.org/wiki/Bankruptcy_of_FTX","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://defillama.com/protocol/ratio-finance","name":"defillama.com","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2021-07","event":"Ratio Finance completes $500,000 seed round at $0.0625/RATIO from investors including Alameda Research, Rarestone Capital, and Solana Ventures.","source":"","date_original":"2021-07-01"},{"date":"2021-09","event":"Strategic and private funding rounds raise an additional $1.75 million, bringing total pre-public fundraising to approximately $2.25 million.","source":"","date_original":"2021-09-01"},{"date":"2022-02","event":"Three public token sales conducted via the Republic crowdfunding platform raise $6.15 million at $1.50 per RATIO token.","source":"","date_original":"2022-02-01"},{"date":"2022-03-25","event":"RATIO Token Generation Event (TGE) concludes. Token reaches an all-time high of approximately $2.24, implying a peak fully-diluted valuation near $224 million.","source":""},{"date":"2022-11-11","event":"FTX and Alameda Research file for bankruptcy. Alameda was a seed-stage investor in Ratio Finance. The collapse triggers broad Solana ecosystem liquidity crisis.","source":""},{"date":"2022-12-03","event":"Ratio Finance suffers a private key compromise, classified as an infrastructure attack. TVL subsequently collapses to zero. No official post-mortem has been publicly released.","source":""},{"date":"2022-12-16","event":"Raydium, a key DEX partner and liquidity source for Ratio Finance vaults, suffers its own private key compromise exploit, draining multiple liquidity pools.","source":""},{"date":"2023-12-11","event":"Final recorded social media activity from the official Ratio Finance accounts. No project updates, governance activity, or team communications have been identified after this date.","source":""},{"date":"2025-01-07","event":"RATIO token price recorded at $0.0004365 with a market capitalization of approximately $4,540, representing a decline of over 99.9% from its all-time high.","source":""}],"sources_used":[{"url":"https://docs.ratio.finance/","name":"docs.ratio.finance","type":"other","archive_url":"http://web.archive.org/web/20260611164316/https://docs.ratio.finance/","credibility":3,"archive_timestamp":"2026-06-11T16:43:16+00:00"},{"url":"https://medium.com/ratio-finance/ratio-finance-an-introduction-bbbc44add6e7","name":"medium.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://medium.com/ratio-finance/providing-liquidity-how-ratio-is-adding-utility-to-lps-on-solana-9da56f99401","name":"medium.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://finance.yahoo.com/news/ratio-finance-raises-2-25-161500225.html","name":"finance.yahoo.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://icodrops.com/ratio-finance/","name":"icodrops.com","type":"other","archive_url":"http://web.archive.org/web/20260515035552/https://icodrops.com/ratio-finance/","credibility":3,"archive_timestamp":"2026-05-15T03:55:52+00:00"},{"url":"https://republic.com/ratio-finance","name":"republic.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://tracxn.com/d/companies/ratio-finance/__G0iMkebfYPuYwUSVcsvPN13K425LWow3G_YukgrP9WI","name":"tracxn.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://defillama.com/protocol/ratio-finance","name":"defillama.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://rekt.news/leaderboard","name":"rekt.news","type":"other","archive_url":"http://web.archive.org/web/20260811072211/https://rekt.news/leaderboard","credibility":3,"archive_timestamp":"2026-08-11T07:22:11+00:00"},{"url":"https://coinmarketcap.com/currencies/ratio-finance/","name":"coinmarketcap.com","type":"other","archive_url":"http://web.archive.org/web/20260606042951/https://coinmarketcap.com/currencies/ratio-finance/","credibility":3,"archive_timestamp":"2026-06-06T04:29:51+00:00"},{"url":"https://www.bitgetapp.com/price/ratio-finance","name":"bitgetapp.com","type":"other","archive_url":"https://web.archive.org/web/20260830045110/https://www.bitgetapp.com/price/ratio-finance","credibility":3,"archive_timestamp":"2026-08-30T04:51:10+00:00"},{"url":"https://www.linkedin.com/in/samiar-tehrani/","name":"linkedin.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:not-found","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://www.crunchbase.com/person/samiar-tehrani","name":"crunchbase.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://twitter.com/RatioFinance","name":"twitter.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://en.wikipedia.org/wiki/Bankruptcy_of_FTX","name":"en.wikipedia.org","type":"other","archive_url":"http://web.archive.org/web/20260814105801/https://en.wikipedia.org/wiki/Bankruptcy_of_FTX","credibility":3,"archive_timestamp":"2026-08-14T10:58:01+00:00"}],"source_tags":["defillama"],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-6","created_at":"2026-05-04T02:54:46.140008+00:00","updated_at":"2026-08-30T05:14:12.015623+00:00"}}