The Stronghold

Secure Lending & Passive Yield Generation

Advise to not borrow against Stronghold deposits: Users should not borrow against their own Stronghold deposits, as BetterBank does not optimize for this function. Instead, borrowing is designed to occur in the Wildlands using Favor LP's as collateral. Rather the Stronghold is optimized for passive positions earning high APY on blue chip assets and stablecoins while also receiving Esteem rewards for additional yield opportunities in the Wildlands!!

The Stronghold is the foundation of BetterBank’s lending and borrowing ecosystem—a high-yield, low-risk lending market designed for passive income generation. Built on Aave V3 architecture, the Stronghold allows users to earn interest on their deposits, while borrowers access liquidity backed by over-collateralized loans.

How It Works

• Stronghold Depositors supply assets into lending pools and earn interest, which is paid by Wildlands borrowers who take loans against their Favor LP collateral.

• Interest rates dynamically adjust based on demand, ensuring that capital remains efficiently utilized.

• The protocol prioritizes security, utilizing battle-tested smart contracts and multisig governance for risk management.

High-Yield Opportunities

Unlike traditional DeFi lending protocols, the Stronghold offers exceptionally high interest rates (50-72% APY standard, with 360% APY at its most extreme).

• These rates are sustained through BetterBank’s innovative credit system in the Wildlands, ensuring depositors receive top-tier returns.

• The protocol self-regulates, automatically balancing interest rates to maintain market stability and prevent excessive utilization.

Supported Assets & Expansion Plans

• Initial Launch Assets: ETH, USDT

• Future Listings: BTC stables, Gold stables, additional blue-chip assets and viable tokens of well developed and enduring communities.

• New asset listings will be introduced gradually based on security assessments and market demand.

Built for Long-Term Growth

• The Stronghold is designed for users who believe in holding assets long-term while earning high-yield rewards.

• The BetterBank team continuously monitors asset safety and may adjust listings to protect depositors.

Risk Mitigation & Security

• Contract Security: Built on Aave V3’s battle-tested smart contract architecture.

• Treasury Protection: The BetterBank Treasury participates as a depositor, providing additional liquidity safeguards.

• Utilization-Based Interest Scaling: If an asset’s lending pool reaches 80% utilization, further loans in that asset are disabled and interest rates start spiking to incentivize new deposits and faster liquidations, preventing liquidity lockups.

The Stronghold’s Role in the BetterBank Ecosystem

• Provides a safe, sustainable lending market for compounding wealth increase in assets of choice.

• Powers the broader DeFi economy by supplying liquidity to borrowers.

• Integrates with the Wildlands to maintain a self-reinforcing liquidity loop, ensuring long-term capital efficiency.

The Stronghold is the bedrock of BetterBank’s lending model—offering unparalleled APY, deep liquidity, and sustainable capital growth. 🚀