Today, we're pleased to announce our strategic partnership with Sturdy Finance. This collaboration aims to unlock more yield and liquidity for users, combining our strengths to create new DeFi opportunities.
Sturdy Finance has established itself across 25 different money markets on four chains (Ethereum, Mode, Optimism, and Linea). Notably, it's the third-leading lending market on MODE by Total Value Locked.
Like Tren, Sturdy uses isolated pools, allowing each asset to have its own money market. This approach contains risk to individual modules, enabling the use of diverse collateral assets such as Yearn Curve pxETH/stETH and Pendle's rswETH.
Our partnership with Sturdy Finance is set to unlock an estimated $3.3 million in idle liquidity. Here's how it works:
Users supply assets to Sturdy's lending pools, earning yield on their deposits.
Sturdy issues receipt tokens representing these lending positions.
Users can then deposit these receipt tokens as collateral on Tren Finance.
Tren allows users to borrow trenUSD against this collateral.
Throughout this process, users continue to earn yield from their original lending position on Sturdy.
This approach allows users to maximize the utility of their assets, effectively putting their money to work twice.
This partnership will create new opportunities for users to maximize their DeFi strategies. By engaging with both protocols, users will be able to earn points from Sturdy's partners such as Optimism, Mode, Etherfi, and Renzo. More importantly, users will be able to deposit their Sturdy receipt tokens as collateral on Tren Finance to borrow trenUSD. This trenUSD can then be used for additional farming opportunities, effectively amplifying the potential returns from the initial deposit.
For those looking to get involved with Sturdy Finance, they are currently participating in the Optimism SuperFest. This event provides enhanced farming opportunities on their platform. While our partnership features aren't live yet, this event offers a great chance to familiarize yourself with Sturdy's ecosystem in preparation for our future integration.
As part of our collaboration, we're working closely with the Sturdy team to list their receipt tokens as collateral on Tren Finance. Initially, we plan to support the following tokens:
Name | Ticker | Holders | Token Supply | Total Supplied to Pool |
|---|---|---|---|---|
Sturdy Interest Bearing WETH (Renzo Restaked ETH) | fWETH(ezETH)-5 | 2,000 | 710.25 | $1.76M |
Sturdy Interest Bearing WETH (Wrapped eETH) | fWETH(weETH)-8 | 903 | 618.63 | $1.54M |
Please be aware that this is not a guarantee. While we intend to list these tokens, technical or other constraints may prevent us from doing so.
We will release detailed information about risk parameters for these tokens in the near future.
To mark this partnership, we've distributed a limited number of invite codes for the Tren Finance testnet to the Sturdy team. Keep an eye on Sturdy's social media channels for a chance to get involved early and secure additional benefits for our mainnet launch.
As we move forward, both Tren Finance and Sturdy Finance remain committed to expanding DeFi possibilities. We believe that by combining Sturdy's multi-chain presence and isolated market structure with Tren's ability to unlock liquidity, we can create more efficient and user-friendly DeFi solutions.
Stay tuned for updates as we roll out new features stemming from this partnership. We're keen to see how our community leverages these new possibilities to enhance their DeFi strategies.
Tren Finance is a CDP protocol designed to provide liquidity for various types of assets. Our team is comprised of core contributors from various successful DeFi projects, boasting a combined TVL surpassing $1 billion. Drawing insights from our experiences at MakerDAO, Ajna, Parity Technologies, Parallel Finance, Casper Labs, Venom Foundation and more, team Tren brings a wealth of knowledge to the table.
Zac
