What is Sturdy?

DeFi's best yield farmers use Sturdy to access up to 10x leverage to farm with.

There are two ways for users to use Sturdy, as lenders or borrowers. Lenders supply liquidity by depositing stablecoins or ETH. Borrowers borrow these funds and deploy them to whitelisted farms on protocols such as Convex and Balancer. The farming rewards are then split between lenders and borrowers.

For example, a borrower could deposit 100 Convex FRAXBP as collateral, borrow 900 USDC, and deposit that USDC into the FRAXBP pool on Convex. They would take home some of the CRV rewards, while the remaining yield would go to lenders.

On existing lending protocols, the interest earned by lenders comes from borrowers. So in order for lenders to earn more, borrowers must pay more. Sturdy uses a different model, where yield instead comes from the borrowers' farming profits.

Here's an example:

• Alice deposits 900 USDC to the protocol

• Bob provides 100 Convex FRAXBP as collateral

• Bob borrows the 900 USDC Alice has deposited as a loan and deploys it to the Convex FRAXBP pool, all in one transaction (see below)

• Over time, Alice and Bob each receive a portion of the farming profits

Here’s what happens under the hood when Bob levers up using Sturdy's one-click leverage feature:

• Sturdy flash loans out 900 USDC from Balancer

• Sturdy deposits the 900 USDC to Curve's FRAXBP pool

• Sturdy deposits 1000 Curve FRAXBP tokens (100 from Bob + 900 from the flash loan) to Sturdy as collateral on behalf of Bob, which are automatically staked in Convex

• On behalf of Bob, Sturdy borrows Alice's 900 USDC to repay the Balancer flash loan