Midas mHYPER

Contract Addresses

The core Ethereum contracts use OpenZeppelin transparent proxies with a shared ProxyAdmin.

Contract	Proxy	Current implementation
mHYPER token	0x9b5528528656DBC094765E2abB79F293c21191B9	0x3f0ec5b26ec6e50907abea87a798bf395189bcd5
mHYPER/USD oracle	0x43881B05C3BE68B2d33eb70aDdF9F666C5005f68	0xa19f5e16dc09641b17adf95bc950f71dbe5cb11b
mHYPER DataFeed	0x92004DCC5359eD67f287F32d12715A37916deCdE	0xE3240302aCEc5922b8549509615c16a97C05654A
DepositVault	0xbA9FD2850965053Ffab368Df8AA7eD2486f11024	0xd2B5f8f1DED3D6e00965b8215b57A33c21101c63
RedemptionVaultWithSwapper	0x6Be2f55816efd0d91f52720f096006d63c366e98	0x570C15bC5faF98531A8b351d69E22E41e3505E47
MidasAccessControl	0x0312A9D1Ff2372DDEdCBB21e4B6389aFc919aC4B	0xDd5a54bA2ab379a5e642c58f98ad793a183960e2
Shared ProxyAdmin	0xbf25b58cB8DfaD688F7BcB2b87D71C23A6600AaC	N/A
LayerZero OFT adapter	0x148c86390a4ae6f7a02df5903bc0a89e8b4581a0	N/A

The token implementation was upgraded on August 13, 2026. The verified source refactors the inherited base token and exposes burnGoverned() for privileged burning. The effective privileged-burn authority is broadly consistent with the earlier implementation, but no published audit on the Midas audit page identifies this exact implementation.

Audits and Historical Track Record

Midas publishes ten audits and contests from Hacken, Côme, and Sherlock covering the shared token, vault, access-control, oracle, and bridge infrastructure from 2023 through 2025. Earlier findings include centralized administration, excessive vault permissions, and a permissive burn role; several findings were acknowledged or accepted rather than removed. Midas also advertises $1M of active bounty capacity split between Sherlock and Cantina.

• mHYPER production history: since July 15, 2025 (deployment transaction)
• Midas platform history: since mid-2024; DeFiLlama records a $4.08M starting TVL and a $927.76M peak (DeFiLlama)
• Price history: $1.00 at inception to $1.121519; the current oracle is round 113 and was updated August 18, 2026 (oracle)
• Known smart-contract loss: none identified for mHYPER

Funds Management

Hyperithm has operated since 2018 and describes itself as a 60+ person digital-asset manager focused on algorithmic, high-frequency, and market-neutral strategies. The current Japanese Financial Services Agency list of Specially Permitted Businesses for Qualified Institutional Investors includes HYPERITHM, corporate number 8010001189312, for private placement and investment management. The FSA explicitly cautions that this notification regime is not an endorsement and is principally for professional-investor business (FSA registry). Hyperithm is not present in the FSA's current cessation or uncontactable-business lists.

Midas's launch disclosure described Hyperithm as managing more than $300M, but Hyperithm's current public site does not publish live AUM. The manager has discretionary strategy authority inside Fordefi transaction policies; no smart contract restricts protocol selection, leverage, or concentration.

Current allocation

Delta Y reports the following net allocations against $39.41M NAV. Its methodology uses the higher of onchain supply multiplied by oracle price and the sum of tracked allocator-wallet NAV. Consequently, Unclassified is a residual rather than proof of a specific offchain asset, and wallet-to-product attribution is maintained by the dashboard rather than enforced onchain.

Allocation	Net value	NAV share	Main location / risk
Morpho V2	$16.84M	42.72%	USDC positions on Monad and Ethereum; exact vault is not identified by the public API
Hypercore	$12.69M	32.20%	Hyperliquid spot, perpetual, and staking balances
Fluid	$4.62M	11.72%	Leveraged positions across Ethereum, Arbitrum, and Plasma
Unclassified residual	$2.95M	7.48%	Difference under the dashboard's max-NAV methodology
Onchain wallets	$1.27M	3.22%	Predominantly idle USDC
Midas redemption vault	$0.74M	1.88%	USDC available in the redemption path
Liquidity buffer	$0.28M	0.70%	Additional backing-side liquidity
Other	$0.03M	0.08%	Assets to deploy, Ethena, Kamino, Merkl, and dust

The current portfolio has two large venue concentrations: Morpho V2 and Hypercore total 74.9% of NAV. Delta Y reports portfolio-wide gross leverage of approximately 1.82x. Fluid alone has approximately $36.85M of assets and $32.23M of liabilities, or about 7.97x assets/net equity. A public strategy notice also permits up to 10% of mHYPER AUM in the Hyperithm Degen Vault, which can supply a whitelisted mHYPER/USDC Morpho market and introduces recursive lending/rehypothecation risk. The public allocation API does not establish that all reported Morpho exposure is in that vault.

Custody and multisig assessment

Fordefi's Midas case study describes a policy engine that checks destination, asset, method, and notional. Transactions inside a pre-approved policy can execute automatically; exceptions route to Midas treasury, the asset manager, and an independent signer. Midas retains an administrative share and the manager retains an MPC share. This is a meaningful operational control, but the policy thresholds and current configuration are not publicly inspectable onchain.

The current dashboard identifies the following primary allocator wallets:

Wallet	Current use
0x68e7...8264 (Fordefi2)	Morpho V2 and most idle wallet assets
0xcd06...3186 (Fordefi3)	Hypercore / Hyperliquid
0x17B5...c7D2 (Fordefi4)	Most Fluid positions

The three dashboard-labeled Safe wallets do not establish a blanket multisig over current fund management:

• 0xe7c2...Ec9a (Safe1) is 1-of-1, solely owned by Fordefi2. Its 68 recorded transactions each require one confirmation.
• 0xb81E...d475 (Safe2) is 1-of-1, solely owned by Fordefi2 on HyperEVM.
• 0xA4E1...c5eA (Safe3) is a genuine 2-of-2 between Fordefi2 and a second owner. Its sole recorded transaction required both confirmations.

Delta Y does not currently attribute material strategy NAV to Safe1, Safe2, or Safe3. Most visible NAV is instead attributed directly to Fordefi2, Fordefi3, and Fordefi4. The appropriate positive control is therefore Fordefi's MPC and policy-based governance, plus the isolated 2-of-2 Safe—not a claim that the current portfolio as a whole is protected by an onchain multisig quorum.

These custody controls address transaction authorization, not investment quality. A trade can comply with Fordefi policy or receive every required signature and still lose money because of poor strategy selection, hedge execution, leverage, liquidation, market liquidity, or counterparty performance. Multisig and MPC controls therefore do not protect mHYPER holders from ordinary fund-management losses.

Collateralization and legal claim

• mHYPER is a qualified subordinated debt obligation of Midas Software GmbH. Holders have no direct title to allocator-wallet assets, statutory segregation, or bankruptcy remoteness under this German GmbH structure (legal structure).
• Midas's qualified-subordination disclosure states that claims may be unenforceable before formal insolvency if payment would cause insolvency and that total loss is possible.
• The portfolio is stablecoin-focused but includes protocol, bridge, oracle, leverage, counterparty, and Hyperliquid execution risks.
• Administrators can grant mint authority without an onchain collateral check.

Provability and attestations

The Delta Y dashboard classifies 92.5% of current NAV, a substantial level of observable detail. Its public API exposes wallet metadata, positions, assets, liabilities, chain allocations, and calculation methodology. The main limitations are the 7.48% residual, unidentified exact Morpho vaults, offchain wallet attribution, and lack of a contract-enforced reconciliation to token supply.

The SAVE registry has continued operating. The latest mHYPER attestation was posted August 18, 2026, with two claims and two verifier records. The registry stores hashes, actors, and timestamps; it does not store the underlying balances or expose a retrievable source URI. SAVE therefore provides tamper-evident, multi-party evidence, but it neither proves live solvency by itself nor gates minting or oracle updates.

Liquidity Risk

• Primary exit: Midas offers instant redemption when vault liquidity is available, subject to a 0.50% fee. Standard redemption depends on the risk manager setting funds aside; the product page says this is usually completed after two price updates but gives no binding completion time or execution price guarantee (mHYPER product page).
• Backing-side liquidity: the redemption-vault balance and liquidity buffer total approximately $1.02M, or 2.59% of NAV.
• Direct DEX liquidity: the GeckoTerminal-indexed mHYPER/USDC pool has effectively zero reserves and volume, so it is not a practical exit route (GeckoTerminal).
• Integrations: DeFiLlama identifies approximately $1.33M in a Pendle mHYPER pool, $0.92M across Morpho mHYPER markets, and $1.16M in Strata tranches. These integrations improve utility but are not equivalent to spot redemption depth (DeFiLlama Yields).

Liquidity remains dependent on active Midas/Hyperithm unwinds and redemption operations. The limited liquid buffer and strategy concentration make a large synchronized exit vulnerable to delay and price movement.

Centralization & Control Risks

Governance

• The shared ProxyAdmin is owned by a 48-hour MidasTimelockController.
• DEFAULT_ADMIN_ROLE has two direct holders: a 1-of-3 Safe and Fordefi MPC address 0xd419...1227. Each can grant or revoke operational roles without the timelock.
• The admin Safe's owners include a nested 3-of-7 Safe, but its outer threshold remains one.
• Mint holders are the DepositVault, LayerZero adapter, and operator 0x5683...4e25. Burn holders are the RedemptionVault, LayerZero adapter, and the same operator.
• The oracle updater 0xd1e0...a99f can publish NAV without a timelock. The current implementation exposes two paths: setRoundDataSafe() enforces a 0.35% deviation limit and a one-hour interval, but the same updater can call setRoundData() directly, bypassing both checks. The direct path enforces only the broad $0.10–$1,000 absolute bounds.

Programmability

Strategy selection, leverage, NAV calculation, standard redemptions, KYC, and wallet attribution are offchain processes. The token price is admin-published rather than computed from reserves. SAVE attestation and the price update are separate processes: a valid registry record is not required before the oracle changes. The token can be paused, accounts can be blacklisted, and role holders can burn governed balances.

External dependencies

Critical dependencies include Hyperithm, Midas, Fordefi, USDC and other stablecoins, Morpho, Hyperliquid/Hypercore, Fluid, relevant bridges, the NAV/attestation pipeline, and the legal issuer. The portfolio's current Morpho and Hypercore concentration makes those venues especially important.

The LayerZero bridge configuration remains the existing assessed 4-of-4 verification setup with 1,200 confirmations; its owner is the same 1-of-3 admin Safe. No bridge-record change is required for this reassessment.

Operational Risk

Midas and Hyperithm are identified teams with institutional investors and multi-year operating histories. Midas publishes extensive technical, legal, risk, and transparency documentation. Hyperithm's current Japanese SPBQII filing and absence from adverse FSA status lists are positive regulatory evidence, but the notification framework is not a prudential license or regulator endorsement.

The current public legal-document page still exposes the July 17, 2025 base prospectus, which states a validity period ending July 17, 2026, and the 2025 mHYPER Final Terms. No replacement prospectus was found on that page as of this assessment. The product page continues to describe a public offer under the EU Prospectus Regulation. This is a documentation/control gap, not evidence that the product is operating unlawfully.

Monitoring

1. Monitor oracle AnswerUpdated events and calls to both setRoundData() and setRoundDataSafe(). Alert on any use of the direct setter, unexpected price change, or staleness beyond the expected twice-weekly cadence.
2. Alert on every RoleGranted, RoleRevoked, pause, blacklist, mint, burn, and proxy Upgraded event.
3. Reconcile total cross-chain supply, oracle price, Delta Y NAV, classified wallet NAV, and SAVE timestamps at least weekly.
4. Monitor the $1.02M redemption liquidity, standard-redemption completion times, and any change to fees or eligibility.
5. Track Morpho, Hyperliquid/Hypercore, and Fluid health, including borrowing utilization, liquidation thresholds, and bridge dependencies.
6. Track Fordefi policy/custody disclosures and any allocator-wallet or Safe owner/threshold change.

Reassessment Triggers

• Any exploit, NAV discrepancy, delayed redemption, role change, proxy upgrade, allocator-wallet change, or regulatory action.
• Morpho or Hypercore exceeding 50% individually, portfolio gross leverage exceeding 2.0x, or unclassified NAV exceeding 15%.
• Redemption liquidity falling below 1% of NAV or a standard redemption remaining incomplete beyond two scheduled price updates.
• Publication of an audit covering the August 2026 token implementation.
• Publication or regulatory approval of a replacement base prospectus.
• A publicly verifiable change to Fordefi policies or Safe thresholds that materially changes unilateral fund-movement risk.
• Routine reassessment by November 19, 2026.

Appendix: Current Control Summary

Users ──USDC──> DepositVault (MINT) ──> mHYPER
Users <─USDC── RedemptionVault (BURN) <─ mHYPER
                         │
                  admin-set NAV oracle

Midas/Hyperithm ── Fordefi MPC policy layer
                         │
          ┌──────────────┼──────────────┐
       Fordefi2       Fordefi3       Fordefi4
       Morpho/idle    Hypercore      Fluid
          │
     Safe1 1/1 ─ Safe2 1/1 ─ Safe3 2/2
     (no material current dashboard allocation to these Safes)

Admin Safe 1/3 ──> 48h Timelock ──> ProxyAdmin ──> upgrades
Admin Safe 1/3 ─┐
Fordefi admin ──┴──> AccessControl ──> roles without timelock
Oracle updater ─────> NAV oracle without timelock

Delta Y positions + offchain source data
          └──> SAVE verifiers/attestor ──> hash registry
                (evidence layer; does not enforce NAV or minting)