Asset Types

What types of assets does Curvance support?

Yield-Bearing Assets

The surge in popularity of yield-bearing assets spans wide, from assets such as LSTs, LRTs, yield-bearing stablecoins, Perpetual Exchange/DEX LP tokens, and more. This growing asset class offers both fungibility and income-generating potential.

With Curvance, users can embrace a new paradigm that removes the compromise between participation in lending protocols and yield farming across DeFi. This enables individuals to explore new strategies, such as providing liquidity on Aerodrome while simultaneously borrowing against their LP tokens, maximizing both composability and capital efficiency.

The flow on Curvance will be as follows:

1. A user is interested in unlocking capital on their yield bearing asset. The Curvance protocol will facilitate the user's redirection of the supplied assets back into the respective underlying protocol to earn the native yield while permitting the user to borrow against their position as it remains productive.

2. Upon deposit, the user will receive representative pTokens (position tokens) minted from Curvance, equal to their pool share. These pTokens will redeem their share of deposits after the loan is paid back.

This unlocks the potential for users to leverage Curvance's advanced position looping, enabling participation in traditional strategies like LRT or yield-bearing stablecoin looping and more advanced strategies such as LP token looping.

Through advanced position looping, users can borrow against their LP tokens while continuing to earn the underlying yield. The borrowed funds are then zapped into the underlying protocol's LP token and redeposited into Curvance, effectively creating a leveraged yield farming position.

Non-Yield-Bearing Assets

The Curvance protocol accommodates a wide range of assets, including non-yield-bearing tokens like WETH, WBTC, USDC, and USDT. These assets, though lacking native yield generation, still play a vital role in DeFi by providing liquidity and stability within lending markets.

With Curvance, users can unlock the capital potential of non-yield-bearing assets without sacrificing flexibility. Unlike traditional lending protocols, which limit non-yield-bearing assets to passive roles, Curvance integrates them into a composable framework that allows users to borrow, lend, and manage positions across multiple chains.

How It Works on Curvance:

1. A user can deposit non-yield-bearing assets such as WBTC into a market on Curvance, using the asset as collateral for leveraging their original exposure or accessing liquidity without losing their original exposure. While these assets do not generate native yield, users benefit from access to CVE emissions and protocol incentives, enhancing passive yield on their holdings.

2. Upon deposit, users receive pTokens, representing their share in the pool. These pTokens can be redeemed for the original collateral once any outstanding loan obligations are repaid.