EXECUTIVE SUMMARY

Stable Jack is not a rug pull in the conventional sense — the team has remained engaged, the protocol continues to operate, and TVL (~$5.4M total) is non-trivial. However, this is a failed token launch with severe investor harm and unresolved structural risks that persist today.

Every IDO participant (who paid $0.20/JACK) suffered losses from the moment of listing — the token’s all-time high ($0.0998, April 9, 2025) was 50% below the IDO price. Today’s price (~$0.0127) represents a 93.65% loss from IDO price, with 24-hour trading volume of approximately $155.80 — a near-dead market. The protocol pivoted away from its original v1 thesis (yield-bearing stablecoin on Avalanche) to a Pendle-like yield/volatility marketplace, now expanding to Sonic chain. IDO investors absorbed all the tuition.

The most structurally dangerous risk is admin centralization: the Dedaub audit explicitly acknowledges that the protocol admin can change “virtually all important parameters including oracles, hooks, fees” and can receive funds directly, with no timelock disclosed. This is the architecture — not a vulnerability queued for fixing.

Top 3 Risks

  1. Admin has unconstrained authority over all protocol parameters (oracles, fees, fund access) with no evident timelock — critical single point of failure for $5.4M in user TVL
  2. Token is 93.65% below IDO price with near-zero liquidity ($155/day volume); team token cliff expired ~October 2025, initiating ongoing unlock pressure
  3. 61.5% of total supply allocated to Team+Advisors (18%) and “Contributor Program” (43.5%) — insider supply massively outweighs public; Contributor Program beneficiaries are entirely opaque

Top 3 Positive Signals

  1. Lead founder partially doxxed (real name confirmed: Ulvi Kagan Dagdeviren), reducing anonymous exit risk
  2. Real audit by legitimate firm (Dedaub, Dec 2024) with findings publicly disclosed and mostly resolved
  3. Protocol has functional TVL ($5.14M on Avalanche, $273K on Sonic) indicating real usage — not zero

1. TEAM ASSESSMENT

1.1 Founders

VERIFIED via multiple independent sources (Avalaunch AMA recap, ICO Drops, HyperNest, Dedaub testimonial page):

PersonHandleRoleReal Name Status
Caesar@CaesarJulius0Co-Founder & CEOUlvi Kagan Dagdeviren — VERIFIED
Cihan / SextusHandle mapping UNCONFIRMEDCo-FounderDagdeviren (twin brother) — UNVERIFIED
SolomonHandle mapping UNCONFIRMEDCo-FounderSurname unknown — UNVERIFIED

Official handle listing: @CaesarJulius0, @Solomon_nsi, @Dagdeviren1998 — but no public source maps which handle belongs to Cihan vs. Solomon. Since “Dagdeviren” is the family surname shared by Caesar and Cihan (twins), @Dagdeviren1998 likely belongs to Cihan, not Solomon. The project’s own published handle mapping may be inconsistent.

CLAIMED but entirely UNVERIFIED (official sources only, no independent confirmation):

  • Caesar: “in crypto since 2017,” prior work at “Avalanche native protocols” — employer unspecified
  • Cihan/Sextus: “worked for Avalanche native VC and research company,” “advisor to Turkish bank on DeFi/tokenization” — no company named
  • Solomon: “audit company experience” — no firm named
  • All three: “in Avalanche ecosystem since mainnet launch”

1.2 GitHub Analysis

Organization: github.com/stable-jack

RepositoryLast UpdatedStarsNotes
protocol-contracts-v1Jun 20, 20241V1 Avalanche contracts
EasyLzMar 25, 20250LayerZero OFT logic
events-filterSep 9, 20241Infrastructure
yield-serverJul 1, 20240Forked from DefiLlama
DefiLlama-AdaptersJun 24, 20240Forked from DefiLlama
postgre-apollo-serverOct 26, 20240Forked from ulas96
events-filter-archiveSep 5, 20240Forked from ulas96
websocket-serverJul 8, 20240Point-system backend

GitHub Red Flags:

The organization forks code from ulas96 (GitHub: github.com/ulas96, real name: Yusuf Ulas Yildiz, website: ur.finance). This developer’s pinned repos include ur-stablecoin and ur-leverage — DeFi stablecoin and leverage contracts — as well as ur-leverage. Yusuf Ulas Yildiz is not named in any team materials but contributed core infrastructure. This is an undisclosed team member or contractor, which is a transparency concern.

Additional flags:

  • protocol-contracts-v1 last updated June 2024 — 10 months before TGE. No contract activity in final months pre-launch.
  • Zero external stars on original repos — minimal community scrutiny.
  • Dedaub found a CRITICAL vulnerability at audit time, indicating code was not internally security-hardened.
  • No individual GitHub profiles confirmed for any named founder.

1.3 Social Media

  • @CaesarJulius0 confirmed on X with Avalanche affiliation (“caesar.avax” display name)
  • No deep tweet history analysis possible through web search
  • No evidence of prior failed/rugged project associations
  • No connections to known bad actors identified

COULD NOT VERIFY: Follower quality, engagement ratios, deleted tweet archives, prior project promotion history.

1.4 Team Red Flag Summary

FlagSeverity
Undisclosed developer (ulas96) contributed core infrastructureMedium
All employment claims self-reported, none independently confirmedMedium
Solomon audit firm: unnamedLow
Handle-to-founder mapping inconsistencyLow
Cihan and Solomon have minimal public footprintLow

2. THIRD-PARTY CONSENSUS

2.1 Independent Analyst Coverage

Finding: NONE FOUND

Exhaustive search across Rekt News, The Defiant, DL News, Messari, Bankless, DeFiLlama forums, Ethresear.ch, Reddit, and Crypto Twitter yielded zero independent analyst coverage or critical research on StableJack. The only available narrative is the project’s own. No external expert has publicly validated or challenged the technical claims.

2.2 Audit Assessment

Auditor: Dedaub Date: December 24, 2024 Report: https://dedaub.com/audits/stable-jack/stable-jack-dec-24-2024/ Dedaub Reputation: Legitimate, technically rigorous firm — not a rubber-stamp shop.

Findings Breakdown

SeverityCountStatus
Critical1Resolved
High1Resolved
Medium109 Resolved, 1 Partially Resolved
Low76 Resolved, 1 Open
Centralization1Acknowledged — NOT remediated

Critical C1 (Resolved): Protocol queried a DEX for price estimates before forced swaps — enabling a pool manipulation attack to extract unfair prices. Fixed via Chainlink oracle integration. The existence of this flaw pre-audit indicates the code was not internally security-hardened before third-party review.

High H1 (Resolved): Fundamental accounting error in fee harvesting — function returned dollar amounts where base token amounts were required.

Medium M5 (Partially Resolved): Wrong token fetched for price; spot price used instead of TWAP. Token corrected; TWAP naming issue remains. Price oracle reliability partially compromised.

Centralization N1 (Acknowledged — NOT Remediated):

“Admin can change virtually all important parameters including oracles, hooks, fees and receive funds directly. Requirement: Admin must be fully trusted with strong operational security.”

This is the architecture. Implications:

  • Compromised admin key = ability to manipulate oracles and redirect protocol funds
  • No timelock documented in audit or in any public StableJack document
  • No multisig configuration publicly disclosed
  • Hexagate pause capability grants admin power to freeze all user funds

Additional audit concerns:

  • “Multiple audits” referenced in official docs — only ONE audit found in research (Dedaub, Dec 2024). If others exist, they are not publicly indexed.
  • No Code4rena contest, no Sherlock contest, no Immunefi bug bounty, no second auditor found.
  • V2 contracts on Sonic chain are newer than December 2024 — unclear if they were in scope.

2.3 Community Sentiment

  • Reddit: No subreddit, no significant threads found across r/CryptoCurrency, r/DeFi, r/Avalanche
  • Crypto Twitter: Only promotional content surfaced
  • Post-TGE community reaction: Not recoverable through web search
  • Competing protocols: No commentary from Pendle, Yield Yak, or BENQI communities
  • No neutral community space for critical discussion — all engagement gated through Discord/Telegram

3. ON-CHAIN FINDINGS

3.1 Contracts

ItemValue
JACK Token (Sonic)0x53a828455268139aee1b7ffd375ce03dafadacb6
JACK Token (BSC)0xb4a9634f6e386b661c1fe9ec5aafe0e63fc54d51 — NOT in official docs
V1 Protocol ContractsAvalanche — source claimed verified
Contract Frameworkthirdweb ERC-20, ERC20BurnableUpgradeable, ERC20VotesUpgradeable
Security MonitoringHexagate (threat monitoring + pause capability)

CRITICAL FLAG: A JACK token on BSC (0xb4a9634f6e386b661c1fe9ec5aafe0e63fc54d51) appears on BscScan but is mentioned nowhere in official StableJack documentation. This is either: (a) an undisclosed official bridge deployment, (b) a scam fork using the same name, or (c) a test/deprecated deployment. This requires direct verification — and the fact that it is undisclosed is itself a transparency failure.

Admin Architecture (from audit): Admin can modify all oracles, fees, hooks, and receive funds. Standard DeFi best practices call for:

  • Timelocked upgrades (24-72+ hours minimum)
  • Multi-signature control with external signers
  • Role separation (operations / upgrade / emergency pause)

None of these mitigations are documented in public StableJack materials.

3.2 Token Distribution

Total Supply: 100,000,000 JACK Initial Circulating Supply: 23,945,600 JACK (23.9%)

Category%TokensVesting
Contributor Program43.5%43.5M900 days from TGE
Team + Advisors18.0%18M180-day cliff, 730-day linear
Public Round10.0%10M100% TGE unlock
Discount Tickets10.0%10M100% TGE unlock
Treasury10.6%10.6M15% TGE, 365-day vest
Angel Round8.6%8.6M10% TGE, 365-day vest
Seed Round4.3%4.3M10% TGE, 365-day vest
Liquidity/MM2.0%2M60% TGE, 180-day vest

CONTRIBUTOR PROGRAM — HIGHEST PRIORITY FLAG: 43.5% of total supply to unnamed “contributors” — larger than all investor rounds combined, larger than team allocation, larger than any other category. Beneficiaries are not named in any public document. At 900-day vesting from April 2025 TGE, this allocation unlocks through September 2027. No criteria, no wallet list, no accountability. This could be legitimate protocol incentives or a mechanism to funnel tokens to insiders without disclosure.

Combined insider concentration (Team + Contributors): 61.5%. Public buyers control a minority stake in a project where insiders hold supermajority.

Team cliff: 180 days from April 2, 2025 = approximately October 2, 2025. Team tokens began unlocking ~5 months ago as of this report. Team can sell into a market where retail is down 94%.

3.3 Token Price and Market Data

MetricValue
Angel Round Price$0.125
Seed Round Price$0.150
IDO Price (all public)$0.200
TGE DateApril 2, 2025
All-Time High$0.0998 (April 9, 2025)
ATH vs. IDO Price-50.1%
ATH vs. Angel Price-20.2%
Current Price (Mar 3, 2026)~$0.0127
Loss from IDO Price-93.65%
Loss from ATH-87.3%
24h Trading Volume~$155.80

The JACK token never reached its IDO price at any point in its trading history. The ATH of $0.0998 was still 50% below the cheapest public entry price. This means no IDO investor, no seed investor, and no angel investor was ever profitable. The implied $20M FDV at IDO had zero market support.

At $155/day trading volume, the secondary market is functionally dead. Token holders have no viable exit path.

3.4 TVL Assessment

ChainTVL
Avalanche (v1)~$5.14M
Sonic (v2)~$273K
Total~$5.41M
Average Pool APY15.44%

TVL of $5.4M indicates real user deposits earning yield. This is not zero. However, the extreme disconnect between $5.4M TVL and $155/day token volume suggests: the yield products work, but the JACK token has zero investment demand. Could not directly verify TVL composition (recursive vs. genuine) due to block explorer access limitations.


4. RED FLAGS REGISTER

#FlagSeverityEvidence Source
1Admin has full authority over all parameters, oracles, fees, and funds — no timelock documentedCRITICALDedaub audit N1
2Token never reached IDO price; -93.65% from $0.20; all investors permanently underwaterCRITICALCryptoRank, CoinGecko, DEX Screener
343.5% “Contributor Program” with unnamed beneficiaries — largest single allocationHIGHAvalaunch IDO announcement
424h trading volume ~$155.80 — market functionally deadHIGHDEX Screener data
5Team cliff expired ~Oct 2025; team tokens unlocking into dead market nowHIGHTokenomics + TGE date
6Critical vulnerability (DEX price manipulation) existed pre-auditHIGHDedaub C1
7No timelock, no disclosed multisig architecture for admin keyHIGHAudit + official docs
8Single auditor only; no bug bounty; no competitive audit contestMEDIUMResearch across Code4rena, Sherlock, Immunefi
9V2 Sonic contracts may lack audit coverageMEDIUMAudit date vs. V2 expansion timeline
10JACK token on BSC not mentioned in any official documentMEDIUMBscScan
11Undisclosed developer (ulas96 / Yusuf Ulas Yildiz) contributed core infrastructureMEDIUMGitHub fork analysis
12V1 product failed; full pivot to v2 — original investment thesis wrongMEDIUMOfficial v2 docs
13Zero independent analyst coverage or critical researchMEDIUMExhaustive web search
14No Reddit community; all engagement in controlled channelsMEDIUMWeb search
15Angel investors at $0.125 also underwater — ATH was $0.0998MEDIUMMarket data + round pricing
16M5 audit finding “largely resolved” — TWAP naming issue remainsLOWDedaub M5
17L1 storage gap convention issue remains OPENLOWDedaub L1
18All founder credentials self-reported, none independently confirmedLOWAMA vs. independent search
19Blizzard Fund is ecosystem-aligned (mandate-driven), not independent VC validationLOWIDO announcement
20Hexagate pause = admin can freeze user fundsLOWOfficial docs

5. UNRESOLVED QUESTIONS

These are explicitly undetermined — not filled with assumptions:

  1. Who are the “Contributor Program” beneficiaries (43.5% of supply)? No wallets, no criteria, no public disclosure. Highest priority unresolved question.

  2. What is the admin key architecture? Multisig? How many signers? Timelock duration? Internal vs. external signers? Not found in any public document.

  3. Is the BSC JACK token (0xb4a9634f6e386b661c1fe9ec5aafe0e63fc54d51) official? Appears on BscScan; not in official docs.

  4. Has a v2 Sonic chain audit been conducted? December 2024 Dedaub audit predates or is concurrent with Sonic expansion.

  5. Were vested angel/seed/team tokens sold on-chain? Cannot determine without direct block explorer analysis. These tokens started unlocking in 2025.

  6. What is Yusuf Ulas Yildiz (ulas96)‘s official relationship to the project?

  7. What are the “multiple audits” referenced in official docs beyond the Dedaub December 2024 report?

  8. Is TVL composed of genuine independent capital or recursive/leveraged positions?


6. COMPARATIVE ANALYSIS

Pattern Match Against Known Failed Launches

PatternStableJackRisk Indicator
Token never reaches ICO/IDO price post-listingYESCommon in failed launches
60%+ insider token concentrationYESCommon in rug-adjacent projects
Product-market fit failure + full pivotYESNot exclusively scam indicator
Zero independent analyst coverageYESEcho chamber risk
High admin centralization, no timelockYESPresent in both legitimate and malicious protocols
Dead secondary market post-launchYESCharacteristic of failed launches
Single auditor, no bug bountyYESLower security maturity
Ecosystem-insider backers onlyYESMixed signal — not independent validation

Not Matching Known Scam Patterns

  • No Wonderland parallel: No documented criminal history; team has not vanished
  • No Terra/Luna parallel: No algorithmic stablecoin death spiral; 1:1 collateral maintained
  • No Celsius parallel: No disclosed insolvency or hidden rehypothecation
  • No complete abandonment: Protocol is live, v2 is being built

Yield Sustainability Assessment

  • v1 yield: sAVAX staking rewards (BENQI) — on-chain verifiable, legitimate
  • v2 yield: Underlying lending markets (Silo, Aave on Sonic) — legitimate in concept, dependent on those protocols
  • 15.44% average pool APY: Plausible for yield-splitting on LSTs; not Ponzi-level
  • 1:1 collateralization claim: Mathematically sound model if maintained

7. FINAL VERDICT

NOT A RUG PULL — A FAILED TOKEN LAUNCH WITH PERSISTENT STRUCTURAL RISKS

What this is: A real protocol built by a real (partially identified) team with a legitimate yield-splitting concept, a genuine audit, and real TVL. The team stayed through a v1 failure and is actively developing v2. These are not exit scam behaviors.

What else this is: A catastrophic token launch where every single investor class — angels, seeds, and public — suffered losses from day one and has never recovered. A protocol with an explicit, unmitigated admin centralization risk acknowledged in the audit. A token with $155/day trading volume and no visible recovery thesis. A project where 61.5% of tokens belong to insiders with ongoing unlock schedules.

On the token ($JACK): No investment case exists. The market has delivered its verdict. At $155/day volume, holders cannot exit. Team and contributor tokens are unlocking into this non-existent market.

On the protocol (deposits/yield): Operationally functional, but carries unmitigated admin key risk. If the admin key is ever compromised — through hack, social engineering, or insider action — an attacker can manipulate oracles and redirect $5.4M in user funds with no timelock defense. Do not deposit funds you cannot afford to lose entirely.

For further investigation, priority actions:

  1. Obtain admin key architecture details (multisig configuration, timelock status)
  2. Identify Contributor Program beneficiary wallets on-chain
  3. Verify BSC JACK token legitimacy with the team
  4. Confirm scope of any v2 Sonic audit

SOURCES

SourceURL
Avalaunch AMA Recaphttps://blog.avalaunch.app/stable-jack-ama-project-overview-recap/
Avalaunch IDO Announcementhttps://blog.avalaunch.app/stable-jack-x-avalaunch-ido-announcement/
Dedaub Audit Pagehttps://dedaub.com/audits/stable-jack/stable-jack-dec-24-2024/
StableJack Audits Docshttps://docs.stablejack.xyz/stablejack/audits
StableJack V2 Docshttps://docs.stablejack.xyz/stablejack/stable-jack-v2/why-were-building-stable-jack-v2
JACK Token Docshttps://docs.stablejack.xyz/stablejack/usdjack-tokenomics/usdjack-token
DeFiLlama V1https://defillama.com/protocol/stable-jack
DeFiLlama V2https://defillama.com/protocol/stable-jack-v2
ICO Dropshttps://icodrops.com/stable-jack/
CryptoRank ICOhttps://cryptorank.io/ico/stable-jack
CoinGeckohttps://www.coingecko.com/en/coins/jack-2
SonicScan JACKhttps://sonicscan.org/token/0x53a828455268139aee1b7ffd375ce03dafadacb6
BSCScan JACKhttps://bscscan.com/token/0xb4a9634f6e386b661c1fe9ec5aafe0e63fc54d51
StableJack GitHubhttps://github.com/stable-jack
ulas96 GitHubhttps://github.com/ulas96
DEX Screenerhttps://dexscreener.com/avalanche/0xa40b49418c758ea0faa5d27662320adc7da16127
CoinCarphttps://www.coincarp.com/currencies/stablejack/project-info/
CBInsightshttps://www.cbinsights.com/company/stable-jack

Report completed 2026-03-03. All findings reflect data available at time of research. This is investigative research, not financial advice.