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.