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Sturdy

Question

ZapTinker

@utf63fish · Oct 28, 2023, 09:34

Is Sturdy's lending model different from that of other platforms like Aave?
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reddigy

@gpe75fish · Oct 29, 2023, 09:15

One of the key features of Sturdy is how it utilizes deposited funds.

On Sturdy, the assets you deposit may be borrowed by others to engage in leveraged Yield Farming across various DeFi platforms.

This practice inherently implies a higher degree of exposure to the complex protocol risks and value fluctuations associated with different DeFi tokens.

In essence, your capital is more directly exposed to the market's ebbs and flows, making it crucial to understand the underlying risks of these protocols.

However, there is a notable trade-off to consider: due to this increased risk, Sturdy often offers higher Annual Percentage Yields (APYs) compared to other lending services like Aave.

This potential for greater returns on investment serves as a compelling incentive, attracting users who are willing to undertake additional risk for the prospect of more substantial rewards.

docs.sturdy.finance/overview/what-is-sturdy
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