Frequently Asked Questions
Find answers to commonly asked questions about Grove and its ecosystem.
What is Grove?
Grove is a credit infrastructure protocol that operates as a Sky Prime Agent within the Sky Ecosystem, incubated by Grove Labs. It is the canopy for a family of credit infrastructure products, each built for a distinct layer of the institutional credit stack. Across them, Grove channels stablecoin liquidity into institutional credit strategies onchain and offchain, including AAA-rated CLO tranches, private credit, and tokenized Treasury bills.
What is Grove's mission?
Grove's mission is to capitalize the stablecoin economy. In practice this means building the infrastructure, systems, and networks that transform idle stablecoin liquidity into working capital in the onchain and offchain economy.
What is the Sky Ecosystem?
Sky (formerly MakerDAO) is the decentralized protocol that issues the USDS stablecoin. Grove operates as a Sky Prime Agent within the Sky Ecosystem, a designated allocator that deploys Sky capital into institutional credit strategies under governance-defined mandates. Sky Prime Agents are also referred to as Stars.
Which blockchains does Grove operate on?
Grove is live on Ethereum, Avalanche, Base, Plume, and Monad.
What is Grove Allocator?
Grove Allocator is the protocol's vault-based, non-custodial infrastructure through which Grove partners, primarily Sky, allocate capital under governance-defined mandates. It operates as a hub-and-spoke system that routes stablecoin capital into diversified credit opportunities across onchain and offchain markets.
What crosschain bridging protocols does Grove use?
Grove's protocol is directly integrated with Circle's CCTP V2 and LayerZero's crosschain bridging infrastructure.
What external protocol integrations does Grove support?
Grove integrates with external protocols including Sky, Morpho, Aave, Uniswap, and Curve. Grove also supports generalized interfaces, including ERC-4626 and ERC-7540, for vault-based deployments.
What is Grove's audit policy?
Grove Protocol smart contracts are all audited by independent security firms and researchers, including Spearbit, ChainSecurity, and Certora. Every protocol change undergoes review by teams in the Sky Ecosystem. For external integrations, Grove relies on audits and established infrastructure from teams including Centrifuge and Morpho. Each integration undergoes independent security review before deployment.
How can I verify Grove's holdings?
Every position, allocation, and onboarded parameter is visible and independently verifiable onchain. Grove Data (data.grove.finance) provides real-time portfolio composition, credit holdings by manager and asset type, total value locked, savings rate, active deposits, and historical protocol metrics. All data is public and updated as the system evolves.
How does Grove differ from other onchain credit protocols?
While many onchain lending protocols focus on peer-to-peer or overcollateralized crypto lending, Grove specializes in deploying stablecoin capital into institutional credit strategies including AAA-rated CLO tranches, private credit, and tokenized Treasury bills. Grove operates as a Sky Prime Agent within the Sky ecosystem, with all capital deployed through a noncustodial, audited smart contract system.
What is Grove Basin?
Grove Basin is programmable credit infrastructure designed to provide eligible tokenholders with instant onchain stablecoin liquidity in connection with an approved sale, redemption, transfer, or other liquidity transaction for tokenized real-world assets. Grove develops and supports this noncustodial onchain infrastructure, while the relevant fund, issuer, transfer agent, or tokenization platform continues its existing workflow with the tokenholder. Basin does not purchase or take ownership of underlying securities, and does not operate a trading venue.
What problem does Grove Basin solve?
Tokenized real-world assets inherit a constraint from their offchain counterparts: redemptions follow traditional settlement cycles, which can take multiple days. This is the settlement timing gap that Basin is designed to bridge. Basin can make instant onchain stablecoin liquidity available to eligible tokenholders in connection with an approved transaction, while the issuer or tokenization platform completes its existing workflow. Availability is governed by eligibility requirements, liquidity parameters, platform availability, fund documentation, and law.
Which assets does Grove Basin support?
Basin focuses initially on tokenized Treasury and money market fund products, with support intended to extend across tokenized credit over time.
What is Grove Savings?
Grove Savings is the onchain interface through which participants supply USDS or USDC and receive sUSDS, the savings token of the Sky Ecosystem, in return. The sUSDS exchange rate updates according to the Sky Savings Rate, a parameter set by Sky governance. Grove provides the interface and does not set the rate.
What is sUSDS?
sUSDS is the savings token participants receive when they supply USDS or USDC through Grove Savings. Its exchange rate to USDS updates according to the Sky Savings Rate set by Sky governance, with no lock-ups and no claim transactions required. Because sUSDS is a standard ERC-4626 vault share, it can also be used as collateral, supplied to lending markets, or paired in DEX liquidity.
Does Grove set the savings rate?
No. The Sky Savings Rate is set by Sky governance. Grove Savings is the interface through which participants access it. Grove does not set or guarantee the rate.
What is the Grove Points program?
Grove Points is an onchain record of contribution to the Grove protocol. Participants who supply through Grove Savings accrue Grove Points proportional to the amount supplied. Points are non-transferable, have no monetary value, and confer no claim, security, or entitlement.
How are Grove Points accrued?
Supply USDS or USDC through Grove Savings and hold the resulting sUSDS. Points accrue on sUSDS held directly in the wallet. If sUSDS is supplied as collateral, deployed in a lending market, bridged to another chain, or otherwise moved out of the wallet, that balance stops accruing until it returns. Points-related functionality is administered through app.grove.finance/points.
What can I do with Grove Points?
Grove Points are an onchain record of participation. They are non-transferable, have no monetary value, and confer no claim, security, or entitlement. Program parameters are subject to change at Grove's discretion.
Glossary
What is DeFi?
DeFi, or decentralized finance, refers to financial services and infrastructure built on public blockchains. Unlike traditional financial systems that rely on centralized intermediaries such as banks or brokerages, DeFi protocols operate through smart contracts that execute transactions directly onchain. Grove operates within DeFi infrastructure to connect institutional credit markets with the onchain economy.
What is a stablecoin?
A stablecoin is a digital asset designed to maintain a stable value relative to a reference currency, typically the US dollar. USDS, the stablecoin issued by the Sky protocol, is the primary asset used across Grove's credit infrastructure and participation programs.
What is USDS and how do I acquire it?
USDS is the stablecoin issued by the Sky protocol. It can be obtained through Sky's interface at sky.money by converting DAI, USDC, or other supported assets. USDS is the primary asset used for participation in Grove's ecosystem, including the Points Program and Grove Savings.
What are RWAs?
Real World Assets (RWAs) are traditional financial instruments that have been tokenized for use onchain. This includes Treasury bills, corporate bonds, CLOs, and private credit. Tokenization places the ownership record and settlement infrastructure onchain while the underlying asset retains its offchain credit characteristics. Grove deploys stablecoin capital into multiple RWA categories as part of its diversified credit strategy.
What is a CLO?
A Collateralized Loan Obligation is a structured credit product that pools corporate loans and issues securities in tranches with different risk and return profiles. AAA-rated CLO tranches represent the senior-most, lowest-risk portion of the structure. Grove allocates into AAA-rated CLO tranches as part of its institutional credit deployment strategy.