What Sturdy does
Sturdy is a decentralized yield farming fund with a unique positive-sum mechanic. Borrowers can bet up to 10x on collateral like Convex LP tokens, while lenders earn income from borrowers’ farming without assuming the associated risks and costs of income farming.
Robust current landscape
Sturdy’s mechanic differs significantly from that of most lending protocols, which tend to create a competitive environment between borrowers and lenders; Borrowers have to pay a fee when taking out a loan, the interest of which is passed on to lenders as a return incentive for depositing their assets.
However, there are few projects in the industry that align with Sturdy’s values and vision, including Gearbox and Morpho. Sturdy’s team sees them as colleagues rather than competitors. Founders share wisdom and discuss the latest developments so that they can each create stronger products that advance the DeFi lending industry.
Sturdy’s Birth Story
Sturdy was founded by Stanford students Sam and Dominic. They noticed a problem in existing lending protocols: the zero-sum mechanics overshadowed the benefits of DeFi and led many users back to TradFi.
Frustrated by all of these missed opportunities, the duo set out to create a new lending protocol that would eliminate high interest rates for borrowers and offer lenders high, stable returns. In other words, a positive-sum model.
Robust solution
A closer look at the mechanic
Here’s how Sturdy’s mechanics work for the typical user:
Borrowers deposit collateral and Sturdy converts this into an ibToken by plugging into another protocol like Lido. The ibToken is secured in Sturdy’s Smart Contract Managed Lending Pool, where it gradually generates returns.
The deposit process is reversed when users make a withdrawal; Sturdy redeems the ibToken and transfers the original collateral token back to the user.
Every 24 hours, staking proceeds are split between borrowers and lenders. For lenders, their rewards will be in the same token they originally deposited, while for borrowers, they will be paid out in the yield token.
Sturdy’s Milestones
Since launching in late 2021, Sturdy has achieved exponential growth. The protocol was first launched on Goerli and Fanom testnets, reaching 100,000 transactions and a security audit by Certik.
By 2022, Sturdy had launched on the ETH mainnet, testing its mechanics with stablecoins and stablecoin-dominated assets; Users can leverage some of the most popular DeFi yield farming protocols. After just a few months, the protocol reached >$20 million TVL.
As users responded to Sturdy’s mechanics, the team worked hard to provide an even better experience for yield farmers and improve the product’s fit with the market. In December, they launched Sturdy 1.0, which featured a redesigned user interface and a one-click lever feature. It’s a friendlier experience for locals and newcomers alike. The team also expanded into the ETH market. Farmers can now lend and borrow ETH against LSDs to increase their yields to earn ~40% APY.
By designating this update Sturdy 1.0, the team has emphasized how early it is in its mission to transform DeFi lending. They are poised to continue on their growth trajectory through 2023 and beyond.
Check it out: https://sturdy.finance/
Follow on social networks:
https://twitter.com/SturdyFinance
https://sturdyfinance.medium.com/
https://discord.com/invite/tRVHp6Vx5N
https://docs.sturdy.finance/overview/what-is-sturdy
https://www.certik.com/projects/sturdy
https://code4rena.com/reports/2022-05-sturdy/
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