Tydro Review 2026: Aave-Powered Lending on Ink

Tydro is a decentralized, non-custodial lending protocol on Ink, the Layer-2 stewarded by the Ink Foundation. It calls itself powered by Aave and is aimed at builders and power users who want to supply and borrow assets with flexible collateral. DefiLlama lists it in the Lending category and has tracked it since October 2025.

DefiLlama shows about $125 million in TVL, down 5.6% over seven days. The homepage cites much larger figures, including $2.3B in deposits and $1.8B in borrows. The project does not explain the gap, so treat the homepage numbers with caution.

Public reporting from May 2026 report that markets were halted after a suspected attack. The snippets say Tydro is working with Chainlink and Redstone on a new oracle and will add a 48-hour timelock after migration. The project does not give the full incident details, so check official channels.

Tydro runs a pooled lending market. Depositors supply assets to a shared pool and earn a variable rate. Borrowers take assets from the pool after posting collateral worth more than the loan. Interest rates move with how much of the pool is borrowed.

If a borrower's collateral value falls too close to the loan value, the position can be liquidated. Price oracles determine this, so oracle quality matters. The reported move to a Chainlink and Redstone oracle, with a 48-hour timelock afterwards, bears directly on this risk.

Tydro says it is powered by Aave, so the mechanics follow Aave's well-known model, applied on the Ink Layer-2. All actions happen through smart contracts using your own wallet.

Tydro does not publish a fee schedule. As with other Aave-style markets, the main costs are the variable borrow rate, which changes with utilisation, and network gas on Ink. Users can see live supply and borrow rates per asset on the Markets page and in the app.

Whether Tydro takes a protocol reserve cut is not stated here. Check the docs and FAQ before relying on any yield figure.

Tydro is non-custodial, so the main risks are smart-contract, oracle and chain risk rather than company custody. DefiLlama lists zero audits for the project. The Aave lineage is a point in its favour, but it does not replace an audit of Tydro's own deployment and settings.

Public reporting dated May 7, 2026 report that Tydro halted trading after a suspected state-backed attack, with a community post saying markets were paused. The same results say a new oracle is being deployed with Chainlink and Redstone, followed by a 48-hour timelock. The project does not say whether user funds were lost or whether markets have fully reopened. Verify the current status and any post-mortem before depositing.

No regulatory status or licence is stated publicly. Lending and borrowing involve liquidation risk, and users can lose money. Check what is permitted where you live.

Tydro is for DeFi users comfortable with self-custody wallets, collateralised borrowing and liquidation risk, particularly those already active on Ink. It is less suited to beginners or anyone who needs a protocol with a long, incident-free record.