Credit · Leveraged Yield · ALPHA
Stella (formerly Alpha Homora) offers leveraged yield strategies with a pay-as-you-earn borrowing model: borrowers pay 0% interest and instead share a portion of realized profit with lenders.
Pay-as-you-earn leveraged strategies (ex-Alpha Homora).
ALPHA price
$0.0004
+5.5% 24h
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Typed risks scored by severity, likelihood and impact, with the incident record behind them.
Functionally dormant with residual deposits: TVL flat near $443k with zero incentives and no wind-down notice found.
43
severity-weighted points across 14 typed risks · 4 critical
assessed Jul 2026Market
16· 5 risks · 2 critical
Technological
9· 3 risks
Counterparty
11· 3 risks · 2 critical
Governance
5· 2 risks
Regulatory
2· 1 risk
Every score is recomputed at render time from the typed risks below; nothing is hand-assigned. Each risk contributes its severity weight (critical 4 · high 3 · medium 2 · low 1) to its category; the headline number is the sum across all categories. Bars scale to this entity's highest category score. Scores are not comparable across tags because a permissionless-market protocol concentrates technological risk while an institutional-credit protocol concentrates counterparty and regulatory risk, and a single league table would misrepresent both.
Market 5 × → 16
Technological 3 × → 9
Counterparty 3 × → 11
Governance 2 × → 5
Regulatory 1 × → 2
Stella is best understood as a small residual protocol carrying a very large unresolved liability from a previous life. The 2021 Alpha Homora V2 exploit left $32.429m owed to Iron Bank, the pledged 50m ALPHA collateral lost more than 90% of its value, repayment ran at about $5,000 a month, and the counterparty responded by freezing roughly $41m of user funds and then walking away from the project entirely in February 2024. That history is not closed and it defines the entity. The current product has some sensible design features, published Collateral Factors of 0.92 to 0.95 per LP, a 2-day lender withdrawal delay against sandwiching, and a documented oracle contingency, but the oracle is off-chain and depends on centralised exchange prices, leverage parameters are set at the research team's discretion rather than on chain, no current audit report was located, positions carry a hard 30-day expiry liquidation, and TVL of $442,829 on Arbitrum alone is far below the liquidity depth any leveraged farming design needs to liquidate cleanly. Successive exchange delistings through 2025 and into 2026 point the same direction. Treat this as a wind-down profile rather than a going-concern leverage venue.
Market5
Technological3
Counterparty3
Governance2
Regulatory1
6 documented incidents · 13 Feb 2021 to 4 Jul 2025 · how the protocol behaved under stress, with sources.
13 Feb 2021
Alpha Homora V2 was exploited through a new pool contract that was neither publicly announced nor accessible via the UI, letting the attacker borrow from Cream v2 / Iron Bank in a flash loan attack. Debt at the time of the theft was 11,245 ETH plus 4,263,139 DAI plus 4,032,014 USDC plus 5,647,242 USDT.
DetailsAlpha Homora V2 was exploited through a new pool contract that was neither publicly announced nor accessible via the UI, letting the attacker borrow from Cream v2 / Iron Bank in a flash loan attack. Debt at the time of the theft was 11,245 ETH plus 4,263,139 DAI plus 4,032,014 USDC plus 5,647,242 USDT.
Outcome: A joint repayment agreement was struck: 20% of Alpha protocol fees to Iron Bank, collateralised by 50m ALPHA worth roughly $60m to $90m at the time. Alpha Homora V2 relaunched in May 2021 with a $100m credit limit, up to 7x leverage, and TVL reached $675m.
SourceMar 2023
During the freeze, observers noted that some positions inside the platform that should have been liquidated had not been, because of the impact on fund balances.
DetailsDuring the freeze, observers noted that some positions inside the platform that should have been liquidated had not been, because of the impact on fund balances.
Outcome: No loss figure was disclosed. The dispute continued.
Source1 Mar 2023
Iron Bank paused Alpha Homora's lending accounts, blocking withdrawals for users who had accessed Iron Bank through the Alpha Homora front end, and stated it reserved the right to apply those funds against the debt if collateral was not topped up by 5 March.
DetailsIron Bank paused Alpha Homora's lending accounts, blocking withdrawals for users who had accessed Iron Bank through the Alpha Homora front end, and stated it reserved the right to apply those funds against the debt if collateral was not topped up by 5 March.
Outcome: Alpha published a sequence of open letters, proposed Iron Bank return about $11m of the $41m, and demanded return of 63,000,000 ALPHA of collateral. Depositors ultimately voted to stop negotiating, accept goodwill funds and pursue legal action. Excess identified was $8,686,364.33 with $5,326,879.99 still outstanding.
Source2 Mar 2023
Repayment had stalled at roughly $5,000 per month, only about 1.5% or $500k net had been repaid, and the 50m ALPHA collateral had fallen more than 90% to around $6m. Iron Bank had asked for additional collateral on 14 February 2023.
DetailsRepayment had stalled at roughly $5,000 per month, only about 1.5% or $500k net had been repaid, and the 50m ALPHA collateral had fallen more than 90% to around $6m. Iron Bank had asked for additional collateral on 14 February 2023.
Outcome: Iron Bank escalated to freezing accounts the following day.
Source1 Feb 2024
The Iron Bank team abandoned the project and transferred multisig ownership to the Keep3r multisig at 0x0d5dc686d0a2abbfdafdfb4d0533e886517d4e83 with no notice to affected users.
DetailsThe Iron Bank team abandoned the project and transferred multisig ownership to the Keep3r multisig at 0x0d5dc686d0a2abbfdafdfb4d0533e886517d4e83 with no notice to affected users.
Outcome: Affected users escalated to Yearn governance seeking Keep3r's help and filed police cases. Funds remained locked as of April 2024.
Source4 Jul 2025
Binance delisted Stella (ALPHA) alongside BSW, KMD, LEVER and LTO, citing periodic review of development activity, trading volume, network stability, community engagement and regulatory compliance.
DetailsBinance delisted Stella (ALPHA) alongside BSW, KMD, LEVER and LTO, citing periodic review of development activity, trading volume, network stability, community engagement and regulatory compliance.
Outcome: Spot trading suspended 4 July 2025. Coinone had already ended ALPHA trading on 30 March 2025, and KuCoin scheduled delisting with withdrawals closing 13 February 2026.
SourceEvent-type chips are categorised by event type against the risk taxonomy (a documented presentation mapping, not a dataset assessment). Amounts are the dataset's published figures; missing values were never published.
