Sturdy V2

Lending

Sturdy is a lending platform enabling the creation of a money market for any token through its novel two-tier architecture.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Sturdy V2 introduces a two-tier architecture that enables permissionless pooled lending, combining risk-isolated pools with an aggregation layer. This structure not only isolates risk between assets but also prevents liquidity fragmentation, allowing for a liquid money market for any token.
What we like less
The reliance on aggregator managers for risk management and asset allocation introduces a new layer of trust. Additionally, the new lending markets still don't feature any reserves accrual for potential bad debt.
What it means for you
Sturdy V2 offers greater flexibility and control over your DeFi lending experience. You can tailor your exposure according to your risk/reward preferences, potentially leading to optimized yields while engaging with a wide range of assets.

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Information
Info
  • Website
  • Token: STRDY
  • Tags: Lending
Key Metrics
  • TVL: $25M (Rank #112)
  • TVL Ranking by Lending: #23
  • Blockchain: Mode, Ethereum, Fantom
  • Chain TVL
    • Mode: $18.63M
    • Ethereum: $6.36M
    • Fantom: $0
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by several experienced auditors including Zellic, ChainSecurity and Spearbit
  • Public team promotes accountability
  • One hack in a prior version of the protocol
Protocol Maturity
  • Latest protocol version launched recently in 2024; maturity less than three months increases technical risk as smart contracts are not battle-tested
  • Top 20% by total value locked slightly reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • Timelock is less than 48hrs, which provides users with less time to exit if any malicious upgrades are approved
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Isolated markets enable asset risks to be contained to each individual pool without impacting the entire protocol
  • Robust controls in place to prevent risky borrowing
  • Solid mechanisms in place to ensure healthy liquidations
  • No reserves or no stability module
Things to know about Sturdy V2

What is Sturdy

Sturdy V2 innovates upon DeFi lending with its permissionless pooled lending architecture. The protocol features two tiers: Sioled Lending pairs and Aggregators. Tier 1: Siloed Lending pairs operate as mini-markets, each pairing a single lending asset with a single collateral asset, isolated from one another to ensure that risks are contained. This model is immutable and permissionless, akin to the operations of protocols like Fraxlend. Tier 2: Aggregators serve as the second layer, they optimize yield by automatically distributing assets across various siloed lending pairs. This system allows users to lend assets through a Yearn V3 lending optimizer to these silos, ensuring exposure only to chosen collateral types without the risk of fragmentation. This design enables users to manage their risk profiles by selecting suitable aggregators and siloed pairs, providing a customizable lending experience. Aggregators facilitate easy liquidity provision for new silos, enhancing the lender experience by eliminating the need for managing multiple positions.

How Sturdy makes money

Sturdy V2's revenue model could involve fees set by aggregator managers, including management fees (a percentage of AUM per year) and performance fees (a percentage of yield earned). These fees are collected at harvest, aligning the platform's incentives with successful risk management and yield optimization.

How you make money on Sturdy

As a lender, you earn by depositing assets into Sturdy's aggregators, which then allocate your funds across selected siloed lending pairs to earn yield. Your earnings are enhanced through optimized asset allocation and risk management by aggregator managers.

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Sturdy V2 Pools
Sturdy ETH Lending
16.3%
Yield
$4M
TVL
Risk
D
Protocol
Sturdy V2
Chain
Ethereum
Sturdy USD Lending
16.1%
Yield
$2M
TVL
Risk
D
Protocol
Sturdy V2
Chain
Ethereum
Sturdy ETH Lending
13.7%
Yield
$547K
TVL
Risk
C
Protocol
Sturdy V2
Chain
Ethereum

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