🧵 Protocol of the Day: @SturdyFinance
Sturdy V2 is a flexible lending protocol that lets you earn yield on almost any token. It uses a two-layer system: siloed lending pairs isolate risk, while aggregators spread capital across pools to boost returns.
✅ Pros:
• Siloed markets prevent contagion across pools
• Aggregators boost yield with automatic rebalancing
• Audited by top firms like Zellic and ChainSecurity
⚠️ Risks:
• Aggregator Trust – Managers control asset routing and risk management
• Smart Contract Risk – One hack occurred in a prior version
• Timelock Risk – Less than 48hr timelock may limit user response time to malicious upgrades