Another protocol on Monad is growing so fast. @TownSquarexyz recently raised 16.25M in funding to bring institution-backed yield to everyone TownSquare is a cross chain lending protocol on Monad designed around yield-bearing assets. Instead of building a traditional money market, it combines: - Lending - Borrowing - Leveraged looping - Yield aggregation - Incentive coordination into a single modular system. Lending Vaults: Users deposit assets into Lending Vaults. - Depositors earn yield on idle assets - Vault liquidity is supplied to the money market - Unused liquidity can be deployed into external yield strategies Capital remains productive even when not borrowed. Cross Chain Money Market: This is the protocol's lending engine. - Liquidity can be sourced across chains - Users borrow against collateral - Supports both EVM and non-EVM ecosystems Reduce liquidity fragmentation across chains. Borrowing: Users deposit collateral and borrow assets without selling their positions. Benefits: - Maintain exposure to assets - Access liquidity - Continue earning underlying yield Efficiency Loans: One of the most interesting features. - Correlated assets receive special risk treatment - Allows significantly higher LTVs - MON ecosystem assets can reach up to 92.5% LTV - Stablecoin pairs can reach up to 95% LTV Higher capital efficiency than traditional lending markets. Leveraged Loop Vaults: Built for users seeking amplified yield. - Deposit collateral - Borrow correlated assets - Reinvest borrowed assets - Repeat automatically Increased exposure to staking or yield strategies. LST & PT Focus: TownSquare is heavily optimized for yield-bearing assets. Examples: - Liquid Staking Tokens (LSTs) - Principal Tokens (PTs) - Yield-bearing vault assets - RWAs - LP positions Liquidation Framework Risk management remains fully overcollateralized. - Position health is monitored continuously - Liquidators repay debt - Collateral is purchased at a discount - Protocol avoids bad debt accumulation Incentive Layer TownSquare adds multiple reward streams: - MON incentives - TownSquare Points - Partner Points Partners in Monad ecosystem: - Fastlane - Kintsu - Magma - aPriori - Upshift - Mu Digital Users can stack lending yield, protocol incentives, and ecosystem rewards simultaneously. By using Townsquare, users can earn: - $MON Incentives - TownSquare Points - Partner Points