Sturdy V2 - Isolated Lending Pools

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Sturdy V2 - Isolated Lending Pools

Imagine having the ability to create a liquid money market for any token

But why?

To isolate risk between assets while maintaining unified liquidity

Create/ Manage lending pools effortlessly

Sturdy V1 set a new standard in leveraged yield farming, reaching over $30 million in Total Value Locked. Sturdy V2 aims to build on that success.

Traditional DeFi lending protocols often limit user control by imposing fixed collateral types and risk levels. This approach restricts user choices and leads to fragmented liquidity

To address these challenges, Sturdy V2 introduces a new lending model designed to enhance user autonomy and optimize liquidity.

Sturdy V2 features a two-tier architecture: Silos and Aggregators.

Tier 1 consists of Silos. Each silo is an independent lending market with a single lending asset and a single collateral asset. For instance, one silo might involve lending USDC with ETH as collateral. These silos are isolated and simple to create, providing a clear structure for users.

Tier 2 features Aggregators. Aggregators dynamically move funds between silos to maximize yield and reduce liquidity fragmentation.

For instance, if there are five silos for lending USDC with ETH, BTC, stETH, rETH, and cbETH as collateral, an aggregator can distribute funds among silos with ETH, BTC, and stETH to optimize returns. This allows users to lend USDC and choose exposure only to their preferred collateral types.

Sturdy V2 allows users to choose their preferred collateral exposure while benefiting from optimized returns. This streamlined approach enhances the lending experience and simplifies risk management.

Find out more in this video

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The information provided through this work is intended solely for educational purposes and must not be treated as investment advice. Any lapses in presenting any of the information correctly are ours alone. We disclaim any liability associated with the use of this content.