MochiFi Review 2026: Borrowing USDM Against NFTs

MochiFi, branded Mochi, is a DeFi protocol on Ethereum that lets users borrow against NFTs and long-tail assets instead of only large, liquid tokens. Users deposit assets into vaults and borrow USDM, the protocol's stablecoin, while keeping exposure to the deposited asset's long-term value.

The app has sections for Vaults, a USDM Pool, Auctions and Labs. Its dashboard shows vault TVL, circulating USDM, system ratio and USDM TVL. The project describes itself as autonomously governed, and DefiLlama tracks a MOCHI token for it.

DefiLlama lists the protocol under Lending with about $337,000 in TVL, all on Ethereum, down about 19% over the past seven days. It lists two audits and the project account MochiDeFi. The homepage footer is marked 2021 and the Mochi Foundation, so the protocol appears to be an older, small-scale deployment.

MochiFi works like a collateralized debt position (CDP) system. A user deposits an asset into a vault, and the protocol lets them mint or borrow USDM against its value. The user keeps ownership of the deposit and its price exposure, and can reclaim it by repaying the debt.

The key risk is the collateral ratio. If the deposited asset falls in value and the position becomes under-collateralized, the position can be liquidated. The app includes an Auctions section, which in CDP systems is usually where seized collateral is sold to cover the debt.

MochiFi focuses on NFTs and long-tail assets, which often trade thinly and move sharply in price. That makes valuation and liquidation harder than with large tokens. The pages reviewed do not describe how it values NFTs or sets limits per asset, so those details need checking in the docs.

MochiFi does not publish a fee schedule on the pages reviewed. Borrowing rates, minting or stability fees, and liquidation penalties are not stated, so users should look at each vault's page and the linked docs inside the app.

Every action on Ethereum also costs network gas, which can be high relative to a small position. The fees score is left blank because the protocol's own charges are not stated.

DefiLlama lists two audits for MochiFi, and the site links to its documentation and audits. The auditors, scope and findings are not named in the pages reviewed. Audits reduce but do not remove smart-contract risk, especially for a protocol that accepts volatile and illiquid collateral.

The main risks are liquidation, oracle and pricing risk for hard-to-value assets, and thin liquidity at around $337,000 TVL. The pages reviewed do not describe the team, a bug bounty or any past incidents, and do not say whether the protocol holds any regulatory licence. Users connect their own wallets and should read the Terms of Service first.

MochiFi is for experienced Ethereum users who hold NFTs or smaller tokens and want stablecoin liquidity without selling. It is not suited to beginners or to anyone who cannot afford to lose the deposited assets, given the small TVL and the volatility of this collateral.