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.
Curve volumes for Synthetix’s synths have skyrocketed thanks to atomic swaps, a powerful tool that leads to significant volume without frontrunnable risk because of the unique pricing model. As a result, Curve sUSD Base APRs currently sit at 2.94%!
Now, Sturdy is providing a mechanism for users to earn even more. Borrowers can provide Curve sUSD as collateral, borrow stables against their position (at no interest), and repeat to access leveraged yields. With an LTV of 90%, borrowers will be able to lever up 11x and earn over 32% APY!
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. At 5x leverage, users would only be liquidated if sUSD were to depeg by more than 13% for example.
[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 Synthetix
Synthetix is a decentralized platform on Ethereum for the creation of Synths: on-chain synthetic assets that track the value of real-world assets. sUSD is Synthetix native stablecoin. sUSD is minted by staking SNX and is used across the Synthetix Ecosystem for trading financial derivatives such as futures on Kwenta, Options on Lyra, and Option vaults on Polynomial.
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.
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