Sturdy Finance

Sturdy is a decentralized finance (DeFi) lending protocol that enables permissionless creation of liquid money markets for any token. It uses a novel two-tier architecture to isolate risk between lending pairs while avoiding liquidity fragmentation, a common challenge in isolated lending models. The first tier consists of siloed lending pairs, each representing a mini-market with a single lending asset and a single collateral asset. These silos are isolated, meaning lenders in one silo have no exposure to others, allowing precise risk management.

The second tier is an aggregation layer powered by Sturdy's Bittensor subnet, which uses AI-driven optimizers to allocate funds across whitelisted siloed lending pairs. This aggregation enables lenders to earn optimized yields by distributing deposits efficiently while maintaining control over which collateral assets they are exposed to. Borrowers benefit from permissionless asset onboarding, allowing them to borrow against any supported collateral.

Sturdy’s architecture balances the benefits of isolated risk with the advantages of shared liquidity, addressing the trade-off between permissionlessness and deep liquidity. It is designed for DeFi developers, financial institutions, and token projects looking to quickly launch liquid money markets with customizable risk parameters. Users can get started by interacting with Sturdy’s Yearn V3 yield optimizers through the web app or integrating via its open-source smart contracts. Comprehensive documentation and community support are available to facilitate onboarding and development.