Sturdy is a protocol for interest-free borrowing and high yield lending. Rather than charge borrowers interest¹, Sturdy stakes their collateral and passes the yield to lenders. Sturdy launched on Ethereum mainnet in early June, with one use case being using Curve LP tokens as collateral with Convex staking on the backend.
To date, borrowers who supplied Curve LP tokens as collateral on Sturdy only earned the Base Curve APR; all other rewards from Convex staking went to lenders. The relatively low Base Curve APR made it unattractive to supply Curve LP tokens as collateral on Sturdy.
This is changing with our latest integration, which will enable Curve Iron Bank LP tokens (ib3crv) to be used as collateral on Sturdy. Now, users who deposit ib3crv will receive both the full Base Curve APR and 75% of all CRV rewards from Convex staking, amounting to 5.16% APY at the time of writing. Combined with an LTV of 90% and interest-free loans, borrowers will be able to lever up 11x and earn over 56% APY! This is in addition to yield generated by the underlying assets which are deposited to Iron Bank’s lending market.
Leverage always contains risk, however in this case both the collateral and borrowed assets are stablecoins. As a result, liquidations will only occur in the event of a depeg. The tokens in the liquidity pool are interest-bearing receipt tokens representing Dai, USDC, and USDT deposited into Iron Bank’s lending market, limiting depeg risk.
[1] Interest rates will go into effect if the utilization rate of a reserve goes above 90%. You can find more information about this in our docs.
About Iron Bank
Iron Bank (ib.xyz) is a decentralized lending platform focused on capital efficiency allowing protocols and individuals to supply and borrow cryptocurrencies on Ethereum, Fantom, and Avalanche. It is helping build a better and safer DeFi lending ecosystem, by driving capital efficiency with trusted entities as the liquidity infrastructure and backbone for DeFi and CeFi.
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 Ethereum Mainnet and Fantom Opera.
To learn more, you can connect with us on Twitter, Discord, and Medium.
