# Introducing Sturdy's mechanics and use cases

By [amir007](https://paragraph.com/@amir007) · 2022-12-05

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What is Sturdy?
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**Sturdy is the best DeFi product with 10x leverage for lenders and borrowers.**

There are two ways to use the product:

1.  Lending to the Sturdy protocol
    
2.  Receive a loan from Sturdy Protocol
    

For example, Maggie lends $250 to the protocol and Jack borrows $50 from the FRAXBP token using the tokens in the protocol. At the end of the period, both parties can receive interest according to the amount they have invested. In fact, Jack provides the interest of Maggie, and Jack returns the loan amount with his own analysis at a certain time.

[![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=Pj0lKnhGkdc)

**Sturdy intelligently does the following in this process:**

*   Sturdy takes a loan of $250 from Balancer.
    
*   Sturdy makes a $250 bet into the FRAXBP Curve pool.
    
*   Sturdy puts the FRAXBP Curve token in the amount of $300 as collateral on Jack's behalf.
    
*   Sturdy borrows $250 on Jack's behalf to repay Maggie's loan.
    

Sturdy "1.0"
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The Sturdy version has been open for users for 1 month.

Some of its features include the following:

Advanced **user interface** that is easy to use.

![](https://storage.googleapis.com/papyrus_images/8a2f1d42b6ac44eb598bb4d01238cb1e94a0c1a10457aaeb3446fcf31ec0a24a.png)

**New assets** Valid and reliable assets that are newly added to the platform.

**Advanced security** High security and safe done under _Quantstamp_ standard.

Active on **Ethereum** and **Phantom** networks

And **more features** ...

What is the working method of Sturdy from 0 to 100?
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Sturdy performs three separate activities:

1.  **depositing collateral**
    
    a. The borrower deposits a token as collateral.
    
    b. Sturdy converts that token into an interest-bearing token like ibToken.
    
    c. ibToken is obtained by placing the borrower's collateral in a separate protocol, such as Yearn or Lido.
    
    d. ibToken is locked into Sturdy loan pool smart contracts.
    
2.  **Withdrawing collateral**
    
    a. Sturdy releases the ibToken and returns the token originally provided as collateral to the user.
    
    b. The Borrower can withdraw exactly the same number of Collateral Tokens as they have provided, independent of the ibToken earning interest.
    
3.  **harvesting yield**
    
    a. The returns from the settlement are withdrawn every 24 hours and distributed to borrowers and lenders.
    
    b. For lenders, returns are paid in the same token they deposited.
    
    c. For borrowers, interest is paid in yield notation (eg CRV).
    

Why Sturdy?
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1.  Sturdy offers **borrowers** the ability to achieve high leverage on stablecoin returns (up to 10x) with _minimal liquidation risk_.
    
2.  By providing liquidity, **lenders** can benefit from the work of borrowers _without spending a lot of time and accepting risk_.
    

Risk to reward ratio
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By accepting the Sturdy conditions, you can get good profits with the least risk.

![](https://storage.googleapis.com/papyrus_images/becb0259186b48b2401621856494b246bcc1e4a7f1e15cded7250cbede090faa.png)

However, the crypto market cannot always be analyzed and predicted, but the tool that Sturdy provides to investors can be used to get good profits with a little experience among users.

In fact, both the lender receives a decent profit and the borrower can earn a significant profit.

Some interesting stats on Sturdy
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![](https://storage.googleapis.com/papyrus_images/c6bfcc7d83383b272ce888f6a1d27cccbc5b494f490f0870537ddbd02112d4fa.png)

![](https://storage.googleapis.com/papyrus_images/00b88a62da09958907d2bea2062804e5c0012314223db4a388fe030d5c2a44d6.png)

Thanks to @frank\_maseo for her interesting dashboard about Sturdy

For more stats in dashboard: ([https://dune.com/frank\_maseo/sturdy](https://dune.com/frank_maseo/sturdy))

Conclusion
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Considering the plans ahead of the Sturdy team, we envision a great future for this project.

In a market that is sometimes full of losses, such a powerful tool is very useful in terms of risk acceptance.

Use it and thanks Sturdy team.

Resources
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[https://docs.sturdy.finance/overview/what-is-sturdy](https://docs.sturdy.finance/overview/what-is-sturdy) [https://sturdyfinance.medium.com/introducing-sturdy-1-0-d7eeba36042d](https://sturdyfinance.medium.com/introducing-sturdy-1-0-d7eeba36042d) [https://docs.sturdy.finance/overview/mechanics](https://docs.sturdy.finance/overview/mechanics) [https://docs.sturdy.finance/overview/why-use-sturdy](https://docs.sturdy.finance/overview/why-use-sturdy) [https://dune.com/frank\_maseo/sturdy](https://dune.com/frank_maseo/sturdy)

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*Originally published on [amir007](https://paragraph.com/@amir007/introducing-sturdy-s-mechanics-and-use-cases)*