In preparation for the release of Sturdy’s long-awaited native token, we’re excited to release the details of $STRDY’s tokenomics. The team made the decision to hold off on releasing a token despite community requests and consistent TVL growth to refine organic product-market fit; we didn’t want to leave the protocol dependent on emissions to attract users.
Sturdy enables DeFi’s best yield farmers to farm with up to 10x leverage on projects like Convex and Aura by accepting staked interest-bearing tokens as collateral. The platform’s unique mechanics create a positive sum dynamic between borrowers and lenders by enabling borrowers to securely gain outsized positions for yield farming while providing lenders with the benefits of active yield farming without the associated time, risk, or gas costs.
Sturdy has held the title of the largest lending protocol with no token on mainnet (by TVL) for several months. That said, the time has come for the community to take a greater role in determining the future of the Sturdy protocol.
Open tokenomics model
Many projects create a fixed tokenomics plan from Day 1 that delineates a precise emissions schedule and utility model. These are often set in stone, unable to be changed in the future. This can be problematic as the needs of a protocol evolve over time. Many tokenomics models that looked great in 2020 became outdated by 2022. Likewise, most tokenomics models conceived in 2023 will look hopelessly inefficient come 2025.
As a result, Sturdy is introducing an open tokenomics model. Rather than attempting to predict the future, the vast majority of the supply will be dedicated to the treasury. The community will have the ability to play an active role in determining $STRDY’s tokenomics and emissions schedule via governance. We hope this encourages experimentation and adapting best practices as they emerge!
Token Allocations
The $STRDY token will have a total supply of 100,000,000, distributed as follows:
- Contributors: 19% over a three-year vesting schedule with a one-year cliff
- Investors: 19% over a three-year vesting schedule with a one-year cliff
- Airdrop: 1.5%, no vesting (more details on the exact breakdown per user coming soon!)
- Treasury: 60.5%, controlled by governance, no vesting
Note that the token will be non-transferable until governance decides otherwise. In the meantime, expect claiming to go live within the next two weeks!
About Sturdy
Sturdy is a lending protocol that enables borrowers to farm with up to 10x leverage on projects like Convex. Lenders receive a portion of the yield from borrowers’ farming for providing liquidity. Sturdy’s unique system provides lenders with the benefits of yield farming without the associated time, risk, or gas costs while allowing borrowers to gain outsized positions for yield farming, creating a positive sum dynamic between the two groups.
