Shoebill V2 Review 2026: Leveraged Lending on Staked Assets

Shoebill V2 is a lending protocol that centres on liquid staking tokens. Its description calls it an LST collateralizable leverage lending protocol aimed at maximizing yield or putting assets to better use.

It has been listed since September 2023 and is deployed on ten chains: Manta, Mode, WEMIX, Kaia, BOB, Fuse, B-squared, Metis, Kroma and zkLink. Total value locked is about $207,000, which makes it a small protocol. One post from early 2024 described it as the second largest lending protocol in the Manta ecosystem at the time.

The homepage gives little detail, but the documentation covers oracles, risk comparisons and user guides. The project has no token that appears, and it does not publish team details on the homepage.

Shoebill V2 works like other money-market protocols. Users supply assets into pools and receive claims on them. Borrowers lock collateral and draw other assets from the pool, paying interest that is passed to suppliers.

The twist is its focus on liquid staking tokens (LSTs). These tokens, such as staked WEMIX or STONE, rise in value against the base asset as staking rewards accrue. Shoebill says it returns the exact quantity of the token to depositors, so the staking yield stays with the user while the token is used as collateral.

Borrowers can loop this: deposit an LST, borrow against it, buy more of it, and deposit again. This increases yield when the staking return exceeds the borrowing cost, but also magnifies losses and liquidation risk. Prices are read from oracle networks, and positions are liquidated if collateral value falls too far.

Shoebill's homepage does not publish a fee schedule. Borrowing costs and supply yields are variable and set by market utilisation, and the app shows the live rates for each market.

One write-up describes low borrowing rates up to a specific loan-to-value limit, but no figures are given. Users also pay network gas on whichever chain they use, and should check any protocol reserve or liquidation penalty in the docs.

Two audits are listed for Shoebill V2, though the homepage does not name the auditors or summarise their findings. The risk documentation says prices come from certified oracle providers such as Pyth, RedStone, Supra, Witnet and Chainlink, which lowers single-feed risk but does not remove it.

Lending protocols carry smart-contract risk, oracle risk and liquidation risk, and leveraged looping on staked assets adds exposure to depegs or exchange-rate shifts. TVL is small, and many of the supported chains are young or niche, so bridge and chain-level risk also apply. The protocol does not publish team details, licensing or insurance on its homepage. Only deposit what you can afford to lose and read the risk pages in the docs first.

Shoebill V2 is for experienced DeFi users who hold liquid staking tokens and understand collateral ratios, liquidation and oracle risk. It suits those active on the smaller chains it supports, such as WEMIX, Manta or Mode, who want to borrow against staked assets or loop staking yield. It is not a good fit for beginners or anyone who needs deep liquidity.