LlamaLend
Llamalend is the lending engine that powers CurveUSD, the decentralized stablecoin by Curve Finance.
Unlike traditional lending systems that rely on hard liquidation thresholds, Llamalend introduces a unique approach called LLAMMA (Lending-Liquidating AMM Algorithm), which enables soft liquidations and smoother price stability.
LLAMMA is a new kind of automated market maker that acts like a lending + liquidation system rolled into one. Instead of waiting for your collateral to hit a risky price and then liquidating it suddenly (like Aave or Maker would), LLAMMA:
Gradually sells your collateral into CurveUSD as its price drops
Gradually buys it back as the price recovers
This creates a more stable experience for borrowers and avoids the painful liquidation spikes.
How LlamaLend works:
You deposit collateral (like wstETH, sfrxETH, or ETH)
You borrow CurveUSD against it
Behind the scenes, your collateral is placed in a LLAMMA band, which defines a price range
If the price drops into that band, your collateral starts being converted into CurveUSD
If the price rises again, it’s converted back to the original token
This means your position is constantly being rebalanced based on market movement without harsh liquidations or big penalties.
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Dashboard & Use-case
Available assets & compatibility
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