We’re thrilled to announce that Sturdy now supports $LINK as collateral! Users can deposit $LINK to borrow $USDC, $Dai and $USDT at 0% interest and no fees on Fantom. This is a first for $LINK and we’re excited to share it with the Chainlink ecosystem and DeFi community! Try out Sturdy at app.sturdy.finance.
How Sturdy offers interest-free loans
Sturdy is a new DeFi primitive for interest-free loans and high yield lending. Here’s how it works: when borrowers provide collateral for a loan, Sturdy stakes it in protocols like Yearn to earn yield. As the collateral’s value grows over time, Sturdy takes the yield and distributes it to lenders. When the borrower pays back their loan, Sturdy unstakes their collateral so they can withdraw the same token that they deposited.
As a result, Sturdy is able to simultaneously offer interest-free loans to borrowers and high yields to lenders. In other protocols, the rate paid by borrowers is greater than the interest rate for lenders. Sturdy flips this on its head, making it the first positive-sum lending protocol.
Watch the mechanics video: Introduction to Sturdy
We will continue to add more collateral assets and widen the borrowing power on Sturdy. Join our Discord to chat and let us know which tokens you’d like to see next.
About Sturdy
Sturdy is a first of its kind DeFi protocol for interest-free borrowing and high-yield lending. Rather than charging borrowers interest, Sturdy stakes their collateral and passes the yield to lenders. This model changes the relationship between borrowers and lenders to make Sturdy the first positive-sum lending protocol. Sturdy is live on Fantom Opera now.
To learn more, you can connect with us on Twitter, Discord, and Medium.
