Ethereum

Fantom

LP-sCurve

There’s no shortage of DeFi protocols that claim they’re doing something unique. We at Sturdy walk our talk. Whether you’ve been following the protocol&#39;s journey since launch or are just tuning in, this is an in-depth project overview of the only positive-sum <a href="https://sturdy.finance/" rel="noopener noreferrer nofollow">DeFi lending protocol</a>.<h2 id="header-0">Sturdy’s Origin Story</h2>In early 2021, two Stanford Students noticed that existing DeFi protocols were losing customers. Borrowers faced high-interest rates and lenders inconsistent yields. These financial inconveniences overshadowed the many benefits of decentralized finance, including self-custody, transparency, and immutability.On most protocols, borrowers pay interest to lenders. The utilization rate– the percentage of deposited funds that are borrowed– determines the interest rate. This widespread model creates a zero-sum game where lenders only earn more when borrowers pay more. With low-rate CeFi alternatives, borrowers aren’t motivated to pay high interest rates.Addressing this issue was the key to bringing DeFi’s benefits to the forefront. Thus, the co-founders created the first positive-sum lending mechanic. After a borrower provides collateral, Sturdy converts it to an interest-bearing token using Yearn or Lido. These tokens collect yield which is periodically harvested and passed to stablecoin lenders. By generating real yield for lenders, Sturdy avoids pitting lenders and borrowers against each other. In fact, the mechanic enables borrowers to pay less while lenders earn more.<h2 id="header-1">Milestones You Need to Know</h2>In late 2021, Sturdy’s DeFi protocol launched on Goerli and Fantom testnets. With over 100K transactions and a completed security audit from Certik, the protocol was ready for growth.The team has raised $3.9M across seed and strategic rounds led by Pantera with participation from Y Combinator, SoftBank’s Opportunity Fund, KuCoin Ventures, mgnr, and others.The lending protocol initially launched on Fantom mainnet in March 2022 before launching on Ethereum mainnet just three months later in June. Sturdy currently has a TVL of over $20 million, with more people joining the #brickgang every day. Since its launch, Sturdy has undergone an additional audit by <a href="https://code4rena.com/reports/2022-05-sturdy/" rel="noopener noreferrer nofollow">Code4rena</a>, ensuring the security of the protocol and the locked value.Sturdy accepts ETH and various Curve LP tokens as collateral and allows users to borrow stablecoins, often interest-free. With a LTV ratio of 90% for most Curve LPs, borrowers get 10x leverage. The protocol features a one-click (de)leverage feature, allowing users to quickly and easily enter and exit leveraged positions.The protocol has partnered with various projects in the industry, with the goal of creating an intuitive and fruitful lending platform. Sturdy accepts curve LP tokens from an assortment of projects such as Frax and Synthetix to provide a medley of yield-generating opportunities for users and recently integrated Unstoppable domains, EPNS, and ENS to further enhance the user experience.Since its launch, Sturdy has increased the number of Curve LP tokens accepted as collateral and is currently working to integrate more tokens to expand the potential sources of yield for its users.<h2 id="header-2">Sturdy’s Future Plans</h2>Sturdy is constantly expanding and seems to always be on the lookout for sustainable and profitable collateral assets to incorporate into the platform. They recently announced the integration of TrueUSD into the Sturdy platform, a fully fiat-backed stablecoin, and seem to be looking forward to making similar announcements in the near future!On team talks and founder AMAs, Sturdy is currently working on a complete UI redesign of the sturdy dApp, to ensure the user experience is as seamless as possible. Expected to be released by the end of October, the redesign will make using Sturdy even more intuitive. The update will include improved one-click (de)leverage, enhanced reserve visibility, and feature historical yields so users can more easily learn about and interact with Sturdy. The redesign has been dubbed ‘Sturdy 1.0’ and represents the hard launch of Sturdy, after several months of talking to the community and building relationships with other projects to ensure product-market fit.Sturdy is currently in discussions with various teams to bring a litany of other developments to its users, but you’ll have to wait a bit longer to hear about those!Now that you have the full picture, you can see how Sturdy went from seed in someone’s mind, to a DeFi lending protocol consistently ranking in the top 20 on Defi Llamas Lending TVL list. Look out for Curve LP tokens on the app. Share your take on Sturdy on <a href="https://twitter.com/sturdyfinance?lang&#61;en" rel="noopener noreferrer nofollow">Twitter</a> or <a href="https://discord.gg/ScQg9DkM" rel="noopener noreferrer nofollow">Discord</a>.

[Project Deepdive] Sturdy: From Nascent Project to the Largest Tokenless Lending Protocol on Ethereum

Table of Contents

Sturdy Finance

Other articles published on Nov 10, 2022

Shido Card available in over 150 countries worldwide

Galaxy Digital Partners with TradeFi Giant to Launch Bitcoin ETF in Brazil

Why is Binance CEO asking India to Rethink its Crypto Tax | CoinGabbar

How to Get Crypto Heirloom: An Ultimate Beginner’s Guide

Is This What A Metaverse Concert Looks Like? SecondLive Takes You To A New Era Of Web3 UGC

How to use Instagram to build Brand and Customer Loyalty?

Join our free newsletter for daily crypto updates!