To understand how the Savvy protocol works, let’s follow a user named Christine. She is experimenting with DeFi, has bridged funds onto the Avalanche C-Chain, and wants to participate in several exciting projects. Christine has 10,000 USDC in her wallet and decides to leverage with Savvy. She selects a yield strategy from the available options in the Savvy dApp and deposits her USDC. Christine starts earning yield on her USDC immediately, but she is not done yet.
Christine uses her 10,000 USDC deposit position as collateral to borrow up to $5,000 in svUSD. She can now utilize her credit line for many use cases. She can swap into other assets, lend, spend, off-ramp to fiat currency, provide market-making for liquidity pools, or make crypto purchases such as NFTs. The yield that Christine earns on her USDC automatically pays down her debt, allowing her to borrow additional credit. She can withdraw her deposit anytime by first paying off any liabilities using collateral or funds in her wallet.
Christine reduces opportunity costs because her deposit earns interest while she pursues other DeFi strategies. Additionally, she does not have to worry about making loan payments or getting liquidated. Christine walks away feeling financially empowered and stress-free, thanks to Savvy.
Last modified 2mo ago