The Sturdy ETH lending market is now live!
Sturdy users can now lever up their LSDs to boost their yields with minimal liquidation risk.
Intro to Sturdy
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 yield farming without the associated time, risk, or gas costs.
Borrowers can securely lever up by borrowing one of the underlying assets of their collateral, so the primary liquidation risk on Sturdy is a major (10%+) depegging event. Lenders receive a portion of the yield from borrowers’ farming for providing liquidity. Sturdy enables seasoned degens and passive depositors alike to achieve higher yields through high-leverage borrowing and passive lending.
Sturdy spent 2022 testing our mechanics with stablecoins and stablecoin-denominated assets, such as Convex-staked Curve LP tokens like FRAXBP, allowing users to easily lever up on some of the most popular stablecoin yield farms in DeFi. Within just a few months of the ETH mainnet launch, we had partnered with some of the most respected teams in DeFi, yield farmers flocked to take on leverage, and the protocol was already maintaining >$20 million TVL.
It quickly became clear that Sturdy offered novel and practical utility, so we’ve decided to expand the opportunities into the leveraged liquid staking market!
Introducing: Sturdy’s ETH market!
Our new leveraged liquid staking market will allow yield farmers to borrow ETH against their LSD LPs, such as Aura-staked Balancer’s BPTs, to take on leverage and boost their staking yields! Our one-click leverage feature enables users to recursively take out loans to seamlessly lever up to 10x on their yield farming positions. For instance, Convex offers 5.64% APY on Curve’s ETH/stETH LP, but users could make 51.74% with 9.18x leverage on Sturdy.
LSDs have been all the rage of late, and for good reason. LSDs are on the path to revolutionize DeFi; Lido, the largest provider of LSDs, is currently the largest project across networks with over $8 billion in TVL, protocols are increasingly accepting stETH and other LSDs, plus they pay out rewards while remaining liquid. Sturdy is prepared to ride the LSD wave to help users crank up their LSD yields while setting the bar for LSD efficiency at the protocol level.
Sturdy’s unique mechanics make it a safe yet productive home for LSD LPs. Because users borrow ETH against LSD LPs, the major liquidation risk is a major depegging event rather than price volatility. While such events have happened in the past, they’ll become extremely unlikely once Beacon chain withdrawals are activated and stakers can withdraw ETH instead of selling their position at a discount. Our leveraged liquid staking market will provide DeFi users with low-risk, high-yield opportunities by taking out leverage against pegged assets. We’ll be adding more accepted collateral from well-established teams who have taken the time to create stable LSDs that move in tandem with ETH to keep user risk low when taking on high leverage.
Best of all, we’ve just completed a fresh round of audits for our new market, courtesy of the Balancer and Aura grant programs, so users can expect the same level of security as always on Sturdy.
This is a huge opportunity for users to build high-yield farming strategies by taking on secure leverage with Sturdy. We can’t wait to see what you degens do with our new leveraged liquid staking market!
About Sturdy
Sturdy is a decentralized yield farming fund, enabling 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.
