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.”
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