Frequently Asked Questions
Find answers to commonly asked questions about Grove and its ecosystem.
What is Grove?
Grove is an onchain credit protocol that deploys stablecoin liquidity into institutional-grade credit strategies at scale. Operating as a Star within the Sky ecosystem, Grove connects the onchain economy with traditional credit markets 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 Star within Sky's ecosystem, serving as its institutional credit allocation layer.
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 for credit deployment. It operates as a hub-and-spoke system that systematically routes stablecoin capital into diversified credit opportunities across various 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 is constantly expanding its external protocol integrations. To date, Grove has integrated with Sky, Morpho, Aave, Uniswap, and Curve, among others. Additionally, Grove 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 leading security firms and researchers in the industry, including Spearbit, ChainSecurity, and Certora. Every protocol change undergoes rigorous review performed by teams in the Sky Ecosystem. For external integrations, Grove relies on audits and battle-tested infrastructure from leading teams like Centrifuge, Morpho, etc. 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 depositors, 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 Star within the Sky ecosystem, with all capital deployed through a non-custodial, audited smart contract system.
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.