# Monad Day 1 DeFi Guide Source: https://x.com/monad_eco/status/1992709131333976107 ## Summary Monad's DeFi ecosystem on day 1 of public mainnet spans lending, yield products and liquid staking, with app.monad.xyz listing the full landscape. Monad is presented as capable of 10,000 transactions per second, with 400ms block times and deterministic finality. Lending protocols Curvance and TownSquare let users borrow against liquid staking tokens or build leveraged MON exposure, while the MON Vault (built by Mellow, curated by Steakhouse) and the earnAUSD vault (built by Agora and Upshift) offer managed yield. Users can also stake MON directly or use liquid staking protocols Fastlane, Kintsu and Magma. ## Article Intro This guide will help you navigate the Monad DeFi landscape for money markets, yield products and liquid staking on day 1 of public mainnet. Monad is built for onboarding millions of new users into DeFi - Monad can accommodate the scale of activity that large fintech applications process on a daily basis. With 10,000 transactions per second, 400ms block times, and deterministic finality, Monad aims to remove the usual friction points in DeFi: failed swaps, high slippage, stale oracle feeds, and high-gas fees. DeFi applications on Monad will compete with centralized exchanges in speed but will operate fully on-chain on a decentralized network. This guide will cover how to get started on the monad blockchain and start exploring lending protocols, yield products and liquid staking products in the ecosystem. To view the full Monad DeFi ecosystem, visit app.monad.xyz Lending Protocols: Lend & Borrow Assets in the Ecosystem Lending in DeFi turns existing assets into usable liquidity. On Monad, it also becomes a way to amplify exposure: users can borrow stablecoins against liquid staking tokens (LSTs), loop positions for higher yield, or maintain several collateral setups depending on how hands-on they want to be. Protocols in the Monad ecosystem offer lending products tailored to different user profiles. Curvance Curvance lets users convert MON, LSTs, stablecoins, and other yield-bearing assets into leveraged exposure in a single transaction. The interface abstracts away the usual looping steps: no repeated deposit, borrow, or resupply actions. Curvance is built for capital efficiency, offering category-leading LTVs and support for a wide range of collateral types: LSTs, yield-bearing stables, yield derivatives, and vault tokens. Support for more exotic assets is also on the roadmap. The protocol uses scalable liquidation mechanisms that batch liquidations for efficiency, auction-based settlement for improved recovery, and a points program rewarding both depositors and loopers. TownSquare TownSquare takes a more modular approach, suitable for users who prefer active position management: isolating risk, mixing collateral types, and customizing each borrow. Users can open multiple independent loans within a single account, each with its own collateral set and borrow asset. Examples include: Using liquid staking tokens as collateral to borrow stablecoins Using stablecoins to borrow MON Mixing LSTs with stablecoins for diversified exposure All of the above can be managed under one wallet, without having to juggle multiple interfaces. TownSquare uses a unified liquidity pool, so lenders share a single deposit base while borrowers build personalized positions. Correlated assets such as MON and MON-LST also benefit from “efficiency mode,” allowing higher LTV for traders seeking to extend directional exposure. TownSquare plans support for multiple Monad LSTs and more specialized assets. The protocol also integrates with WLFI’s USD1 and will issue sUSD1, a yield-bearing token designed to slot directly into looping strategies. Other lending protocols that will launch on Monad: Morpho Euler Gearbox Neverland Money Yield Products: Exploring yield opportunities Beyond lending, the Monad ecosystem offers yield products that simplify access to ecosystem opportunities. These products package strategy, active management, and liquidity into assets users can hold, trade, or use across DeFi. This makes yield accessible and composable from day one. This section highlights two yield vaults launching at mainnet. MON Vault: Actively Managed MON Exposure The MON Vault, built by Mellow and curated by Steakhouse, provides an actively managed strategy for users who want exposure to yield without manually navigating every opportunity in the ecosystem. Instead of depositing in individual pools or strategies, you deposit MON and let the vault allocate across the highest-quality opportunities available—LSTs, lending markets, or ecosystem incentives. The MON vault focuses on: Active allocation across yield-generating MON opportunities Dynamic rebalancing as liquidity venues and LSTs launch Efficient routing to staking options The result is a hands-off MON yield strategy designed to capture risk-managed yield opportunities while remaining liquid, composable, and portable across the Monad ecosystem. earnAUSD Vault: Liquid Stablecoin Yield The earnAUSD vault, built by Agora and Upshift, offers a streamlined way to earn stablecoin yield in the Monad ecosystem without managing individual strategies yourself. Users deposit AUSD, Agora’s USD-backed stablecoin, and receive earnAUSD, a liquid yield-bearing token. The vault allocates AUSD across yield venues on Monad. As the ecosystem expands, the strategy is expected to incorporate additional opportunities such as basis trades and structured yield strategies. earnAUSD is designed around three core features Optimized allocation: Automated routing into markets with risk-adjusted yield Deep composability: Support across lending protocols, DEXes, and perps platforms Liquidity-first design: earnAUSD remains usable as collateral, tradable in pools, and supported across the ecosystem The vault also integrates native incentive layers from Agora and Upshift, creating a unified yield product for stablecoin users entering the Monad ecosystem. MON Staking & Liquid Staking Beyond lending protocols and yield products, the Monad DeFi ecosystem also includes MON staking and liquid staking. Staking MON provides users with the ability to earn staking rewards for securing the network. Users can stake their MON directly with validators through the following dashboards: Gmonads or MonadVision. Liquid staking is an alternative to regular staking that allows users to receive a receipt token for staked assets (a liquid staking token or LST). That receipt token is composable across the DeFi ecosystem, allowing stakers to earn staking rewards while also participating in DeFi activities. Keeping the staked tokens liquid allows for swapping, lending, liquidity provisioning, and many other use cases across DeFi. The Monad ecosystem has a number of liquid staking protocols that offer LSTs: Fastlane → shMON Kintsu → sMON Magma → gMON These liquid staking tokens feature many integrations within the ecosystem, giving MON stakers the opportunity to earn additional rewards aside from the staking rewards. In addition to the protocols above, there will be many other DeFi protocols going live on Monad at mainnet launch across a number of categories. Day 1 on Monad mainnet is just the beginning: with these foundations in place, users can start experimenting, optimizing, and positioning themselves to capture the full potential of a fully on-chain, high-performance DeFi environment. To view the full Monad DeFi ecosystem, visit app.monad.xyz ## Comments **mishaderidder.eth**: Monad mainnet goes live today 9AM Eastern. Some more guides: Monad Day 1 Consumer App Guide https://x.com/monad_eco/status/1992692035812511765 Monad Day 1 Onchain Trading Guide https://x.com/monad_eco/status/1992777831957368839 Monad bridge https://x.com/monad/status/1991986707370295491 And of course DYOR