Protocol Architecture

Capital Efficiency and Composability in Curvance

Curvance is purpose-built to bring high-efficiency lending to DeFi. The current implementation supports stablecoins, WETH, WBTC, Monad-native LSTs, and select LRTs. The system is optimized to offer deep liquidity, high LTVs, and dynamic risk processing for assets most relevant to the ecosystem at launch.

Risk-Isolated Market Design

Curvance structures assets into isolated markets based on risk profile and liquidity depth. Each market operates with its own collateral caps and configuration parameters, allowing us to safely support leverage on assets like WETH, WBTC, and Monad LSTs without exposing the broader system to concentrated risk.

Assets native to Monad, such as LSTs and eventually Pendle PT variants, can be deployed into markets that suit their risk curve. Lower-risk assets can support higher LTVs and deeper liquidity access, while newer or lower-liquidity tokens can be onboarded through smaller, more conservative markets. This structure avoids the typical liquidity bottlenecks seen in shared-pool systems and enables capital to scale efficiently once demand is proven.

Composability

Curvance is built to make capital productive across multiple layers of DeFi without forcing users into fragmented execution flows. At launch on Monad, deposits such as stablecoins, WETH, WBTC, LSTs, and LRTs can be routed into yield sources or integrated strategy layers while remaining available as collateral. This lets users borrow, farm, or loop positions without losing underlying returns.

The architecture also supports advanced strategy execution beyond basic supply and borrow.

It enables:

• Funding rate arbitrage, where users can take directional or neutral positions (e.g. long spot, short futures) while using the Curvance lending layer to deploy capital efficiently.

• Vaults holding LP tokens, allowing users to lend against pooled liquidity positions while still earning underlying AMM or gauge rewards.

• Native strategy stacking, where yield from one layer (e.g., LST staking) can be compounded into additional layers, such as lending or leveraged looping.

• Cross-market optimization, where assets can be rotated between markets depending on desired risk settings or collateral demands, without needing complete manual unwinds.

For builders, Curvance acts as a liquidity substrate that can be integrated directly into execution workflows or hosted vault structures. For users, it functions as a hub where assets remain active regardless of whether the goal is yield, leverage, risk hedging, or directional exposure.