Savvy DeFi is a crypto-native platform that allows users to earn, borrow, spend, and invest all at once on the Avalanche blockchain. By offering non-liquidating and auto-repaying advances on crypto tokens, Savvy gives users access to immediate capital backed by their tokens’ future yield while maintaining ownership of their collateral. These loans take on the form of permissionless, multi-collateral synthetic primitives called svTokens. svTokens can revolutionize liquidity management on the Avalanche blockchain, making it easier for users to optimize their investments and find new ways to generate liquidity. With Savvy DeFi, users can safely leverage their crypto to become more savvy investors, borrowers, or traders, all while remaining liquidation risk-free and freeing up their crypto to work for them. Savvy DeFi allows borrowers to unlock their opportunity cost and borrow like a billionaire.
What is Savvy DeFi
Savvy is a DeFi protocol that allows users to take an advance against their cryptocurrency in the form of a synthetic credit line. Savvy harvests and auto-compounds the generated yield and attributes the yield to their loan balance.
Most other CDPs (Collateralized Debt Positions) allow depositors to use their collateral to borrow against their market value. To ensure the health of their loan, the Loan to Value ratio must stay aligned, or the user’s crypto may be at risk of liquidation.
Savvy, on the other hand, removes the risk of liquidation. Liquidations can be avoided through our repayment model. Borrowers can repay their debt 1:1 with their original collateral or the Savvy synthetic tokens.
Savvy allows users to unlock their future yields, become liquid, and borrow against gains with a non-liquidating advance.
How does Savvy DeFi work?
Savvy users first deposit collateral (including USDC, USDT, DAI, AVAX, and BTC) to a Savvy vault and select a yield-bearing strategy. Borrowers can mint a svToken line of credit up to 50% of the value of their collateral. Their deposited collateral is then used in the selected strategy to generate yield, and the generated yield gets attributed to the balance of the loan, effectively paying off the loan’s balance over time.
Another option for borrowers is to leave their deposit in a yield strategy, allowing borrowers to draw down the line of credit in the future. Alternatively, depositors can repay their debt early using either the base token or svToken, allowing borrowers to withdraw the collateral. Lastly, borrowers can self-liquidate their line using a portion of the collateral to repay the debt and allow them to remove whatever is remaining.
Why does Savvy DeFi exist?
Savvy exists to return capital efficiency to the masses and empower everyone to optimize their financial habits. Crypto allows anyone to enjoy financial strategies previously reserved only for those with access to traditional financial systems and strong credit history. Savvy opens this vehicle to the masses in a non-liquidating, auto-repaying fashion.
Non-liquidating lending will become a compelling concept anyone can utilize in the Avalanche DeFi ecosystem, from DAOs to individuals. Savvy will enhance the system because of the composability that DeFi allows — making it easy to participate across various apps and services such as lending, staking, and yield farming.
What is the SVY Tokens utility?
At the core of Savvy is the SVY Utility token. The SVY token is a crucial part of the Savvy DeFi ecosystem. (Future articles will help readers thoroughly explore the Savvy ecosystem’s purpose, utility, and tokenomics. But for now, you can read in-depth in the whitepaper). At a glance, the maximum supply of SVY will be set at 10,000,000 SVY and will be fully distributed over six years. Token distribution begins with the community-first fair launch process without pre-seed or private sales. SVY is required to use Savvy’s smart contracts and access non-liquidating lines of credit. Additionally, the token staking option can be enabled using a VE model.
To foster community participation and ensure the ecosystem’s health, the Savvy DAO, a decentralized autonomous organization, will play a prominent role. The DAO allows for transparent, decentralized decision-making and allows anyone to participate as long as they follow the organization’s rules.
Who are we?
Our team is passionate about building innovative financial and social tools that can change the world for the better. We are excited to be a part of the Web3 space and are committed to bringing Savvy to life.
Our talented and diverse team brings together talent from banking, entrepreneurship, engineering, marketing, organizational behavior, and product development backgrounds. We have experience working with some of the world’s biggest companies, including JPMorgan, Google, Microsoft, X-Box, CERN, and Unilever.
For more info, read our Team Page.
The Community-First Fair Launch
Savvy’s launch is designed to be fair and inclusive, providing equal opportunities for all users to participate and obtain tokens and access to the protocol. We will launch on March 21, 2023, with a Liquidity Generation Event (LGE) and a Liquidity Bootstrapping Pool (LBP) to ensure sufficient liquidity for the protocol. Check out our article to learn more.
Thank you for reading this post! If you have any questions or comments, please feel free to reach out on any of our channels or read our whitepaper. We are always happy to hear from our community and look forward to continuing the conversation.