News

Sturdy Raises $3.9M for a New kind of Lending protocol

Sturdy has raised $3.9M from many VCs

Nearly every major DeFi money market follows the same core model: borrowers pay interest to lenders. But Sturdy’s mechanic is incompatible with an environment where lenders demand >10% APYs and borrowers have little reason to pay that much when lower-cost CeFi (or even TradFi) alternatives exist.

Rather than requiring borrowers to pay interest, Sturdy stakes their collateral and passes the yield to lenders. As a result, stablecoin lenders receive interest rates typically reserved for more volatile assets, while borrowers benefit from interest-free loans. Sturdy’s vision is to be the go-to protocol for lending or borrowing stablecoins on EVM-compatible chains.

To turn the vision into reality, they have raised $3.9M across seed and strategic rounds, led by Pantera with participation from Y Combinator, SoftBank’s Opportunity Fund, KuCoin Ventures, mgnr, One Block, Dialectic, and Orange DAO. “We are thrilled to be collaborating with these incredible partners, who bring deep experience across DeFi and traditional financial services,” said Sam Forman, CEO of Sturdy.

Paul Veradittakit, Partner at Pantera, said, “Positive-sum relationships are at DeFi’s foundation. Historically, lending has been zero-sum, with lenders only able to earn higher yields as borrowers pay greater interest. We’re excited to back Sturdy’s new kind of lending protocol in which lenders earn more and borrowers pay less.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News

Victor

Recent Posts

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

8 minutes ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

1 hour ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

2 hours ago

Cosmos Developer Interchain Foundation Sold 3000 ETH Today

Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…

3 hours ago

Zircuit Launches ZRC Token: Pioneering the Next Era of Decentralized Finance

George Town, Grand Cayman, 22nd November 2024, Chainwire

3 hours ago

Inflation Warning By Vanguard Amid Tariffs And Labor Issues

Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…

3 hours ago

This website uses cookies.