Lending · Review
ActivePhiat Protocol Review 2026: Aave v2 Fork on PulseChain
Phiat Protocol is a lending market on PulseChain built as a fork of Aave v2, with its own risk controls and PHIAT token staking. It is small and niche, so treat it as a higher-risk venue.
By the DappsAtlas editorial team · Updated
DappsAtlas score
5.4/10
Mixed
Our verdict on Phiat Protocol
5.4/10Phiat Protocol suits experienced PulseChain and Hex users who want a native lending market and understand Aave-style mechanics. Its main strength is a familiar, proven lending design combined with its own risk-control and staking ideas. The main caveat is size and transparency: total value locked is small, and fees, parameters and team details are not clearly published. Treat it as a higher-risk venue, read the audits before depositing, and keep positions modest.
Score breakdown
How Phiat Protocol scores
- Security
- 5.0/10
- Ease of use
- 6.0/10
- Fees
- n/a
- Features
- 5.5/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Phiat Protocol?
Phiat Protocol is a lending and borrowing market on PulseChain. It is described as an Aave v2 fork with a different design for risk control and with staking for its governance token, PHIAT. The homepage presents it as part of a set of investor allocation tools for the Pulse and Hex community.
It has been tracked since late September 2023. Total value locked is around $517,000, with a small weekly change, so it is a niche venue rather than a major lending market. Two audits are listed in tracking data.
The project does not publish a team page, fee schedule or detailed risk parameters on its homepage. Anyone considering it should check those details inside the app and in the audit reports.
How Phiat Protocol works
Phiat Protocol follows the Aave v2 model. Depositors supply assets into shared liquidity pools and earn interest. Borrowers lock collateral and draw other assets from those pools, paying interest that is set by how much of each pool is in use.
Each loan must stay overcollateralized. If collateral value drops below a threshold, liquidators can repay part of the debt and claim collateral at a discount. This protects the pool but can cost borrowers part of their collateral.
Phiat's stated difference is a new approach to risk control and the ability to stake its governance token, PHIAT. The homepage does not explain these mechanisms in detail, so users should read the in-app documentation and parameters before relying on them.
6 features
Key features
01
Pooled lending markets
Users can supply assets to earn interest and borrow against collateral, following the pooled-lending model popularized by Aave v2.
02
PulseChain deployment
The protocol runs on PulseChain, aimed at users in the Pulse and Hex ecosystem.
03
Custom risk control
The project describes a different approach to risk control than the original Aave v2 design. Specific parameters are not published on the homepage.
04
Governance token staking
The PHIAT governance token can be staked as part of the protocol's design. Rewards and rules are not detailed on the homepage.
05
Listed audits
Tracking data lists two audits for the protocol, which is a positive sign. The reports themselves are not summarized on the homepage.
06
Pulse and Hex focus
The homepage describes the project as investor allocation tools for the Pulse and Hex community.
Pros and cons
What we like
- Builds on the well-known Aave v2 lending design, which is familiar to DeFi users.
- Offers lending and borrowing natively on PulseChain, where options are fewer.
- Adds its own risk-control approach and PHIAT staking rather than copying Aave unchanged.
- Two audits are listed in tracking data.
- Has been live since 2023 and still holds assets.
Watch out for
- Total value locked is small, around half a million dollars, so liquidity and borrowing capacity are limited.
- Runs only on PulseChain, so users carry that network's bridge, tooling and ecosystem risks.
- The details of its risk-control design and staking mechanics are not spelled out on the homepage.
- Fees, interest-rate parameters and collateral factors are not published in an easy-to-find place.
- As an Aave v2 fork with custom changes, any deviations from the original code add smart-contract risk.
- Team identity, audit reports and incident history are not described on the homepage.
Phiat Protocol fees
Phiat Protocol does not publish a fee schedule on its homepage. As an Aave v2 style market, costs usually come from borrow interest rates, which move with supply and demand in each pool, and from liquidation penalties if a position becomes undercollateralized.
You will also pay PulseChain network gas on each transaction. Current rates, collateral factors and any protocol fees should be visible inside the app before you confirm a deposit or loan.
Is Phiat Protocol safe?
Tracking data lists two audits for Phiat Protocol, but the homepage does not name the auditors or summarize findings. Audits reduce risk without removing it, and changes made to the Aave v2 codebase deserve extra scrutiny. Contracts are non-custodial, so users keep control of their wallets but are exposed to contract bugs, oracle problems and liquidation risk.
The protocol's licensing and regulatory status are not published. Low total value locked means thin liquidity, and it also means a smaller pool of assets backing the system. No incident history is described in the sources available.
6 steps
How to get started with Phiat Protocol
- 1
Set up a wallet that supports PulseChain and add the network.
- 2
Fund the wallet with PLS for gas and the asset you plan to supply.
- 3
Open the Phiat Protocol app and connect your wallet.
- 4
Review the markets, interest rates and collateral factors for each asset.
- 5
Start with a small deposit to learn how the app handles supply and withdrawal.
- 6
If you borrow, keep a wide safety margin above the liquidation threshold and monitor your position.
Who Phiat Protocol is for
Phiat Protocol is for DeFi users already active on PulseChain who want to lend, borrow or stake PHIAT within that ecosystem. It is less suited to beginners or to anyone who needs deep liquidity and a long, well-documented track record.
Phiat Protocol FAQs
What is Phiat Protocol?
Phiat Protocol is a decentralized lending and borrowing protocol on PulseChain. It is described as an Aave v2 fork with a different approach to risk control and governance token staking.
Which blockchain does Phiat Protocol use?
It runs on PulseChain. The homepage title frames it as an allocation toolset for Pulse and Hex investors, so the audience is mainly that ecosystem.
What is the PHIAT token used for?
PHIAT is the protocol's own token. It is tied to the governance token staking feature, though the exact rewards and rules are not published on the homepage.
Has Phiat Protocol been audited?
Tracking data lists two audits for the protocol, but the homepage does not detail who performed them or what they found. No audit removes smart-contract risk, so read any reports before depositing and size positions accordingly.
How big is Phiat Protocol?
Total value locked is roughly half a million dollars, which is small for a lending market. Low liquidity can mean limited borrowing capacity and more volatile rates.
Is Phiat Protocol safe to use?
Like any lending protocol, it carries smart-contract, oracle and liquidation risk. Borrowers can be liquidated if collateral value falls, and depositors depend on the code and on PulseChain working as intended. Never lend or borrow more than you can afford to lose.
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How we checked
Sources
Last updated . Spotted an error? Tell us and we will correct it.