The Sturdy platform continues to expand! Convex MIM has been integrated as the newest accepted collateral on Sturdy’s stablecoin market.
Sturdy enables DeFi’s best yield farmers to lever up their LPs up to 10x, typically with 0% interest, while providing lenders some of the highest stablecoin yields in DeFi to create the first positive-sum interaction between borrowers and lenders!
Convex MIM will reinvigorate Sturdy’s Stablecoin market with a base APY of >8%, per DeFiLlama, enabling borrowers to lever up to 40% APY with 5x leverage. This will enable borrowers to lever up to new heights and provide greater yields to lenders across Sturdy’s stablecoin market. Due to Sturdy’s unique profit-sharing mechanics, the increased yield from leveraging Convex MIM will raise yields of DAI, USDC, and USDT lenders on the platform!
Sturdy’s worked to bring greater reward in the form of yield without increased risk by adjusting the typical risk parameters for Convex MIM. While MIM has maintained its peg amid recent market turbulence, the stablecoin was exposed to nearly every major scandal in 2022, resulting in ~$8 million in bad debt, constituting 5.85% of the total market cap.
To mitigate any threat this debt could bring to the Sturdy platform, the maximum LTV with Convex MIM will be 85% with a liquidation threshold of 83% rather than the typical LTV of 90% with a liquidation threshold of 93% Sturdy uses on other collateral assets on both the Stablecoin and Ether markets. This means users won’t be able to lever up quite as high, and liquidation requires less price volatility than on other assets to keep the Sturdy platform secure.
Still, with over 8% base yield, leveraged Convex MIM will bring unprecedented yield to leveraged farmers. Borrowers will be able to lever up the base yield of >8% up to 5x to bring in over 40% APY!
About MIM
MIM, or Magic Internet Money, is a stablecoin backed by interest-bearing tokens with a market cap of over $100,000,000 minted by Abracadabra and used throughout DeFi.
Convex MIM is a Curve stablecoin LP consisting of MIM, DAI, USDT, and USDC. Users can deposit MIM and 3crv (USDT, DAI & USDC) on Curve to receive the LP token, which can then be staked on Convex for CRV and CVX rewards.
Get your Convex MIM ready, anon!
Head over to Sturdy.Finance and lever up your Convex MIM for up to 40% APY!
