> For the complete documentation index, see [llms.txt](https://source-code-systems.gitbook.io/better-bank/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://source-code-systems.gitbook.io/better-bank/protocol-mechanics/stronghold-and-wildlands-tldr.md).

# Stronghold and Wildlands TLDR

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### **Stronghold & Wildlands Wallet Separation**

**To prevent loss**, BetterBank **strongly recommends** using **separate wallets** for **Stronghold** and **Wildlands** positions.

* **Stronghold = Safe Lending** – Designed for high passive yield with minimal risk.
* **Wildlands = High-Risk Credit System** – Positions in Wildlands are prone to **rapid liquidations**.
* **Mixing Positions = High Risk** – If a **Wildlands position is liquidated**, all **Stronghold positions** of that same wallet **are also liquidated**.
* **Advanced Users Only** – While expert users may choose to manage both within one wallet, **it must be understood** that **any safety** that is by design inherent to the Stronghold **immediately becomes void** through such actions**.**

**Recommendation:** Always use **separate wallets** for each strategy, and **protect your Stronghold assets** from the **high-risk** exposure that **is normal in the Wildlands**.
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[**Stronghold**](/better-bank/protocol-mechanics/the-stronghold.md) **– Secure Lending & interest yielding Hub**

* **Primary Use Case:** Safe lending with **high APY** returns.
* **How It Works:** Users **deposit assets** and earn **interest** and [Esteem](/better-bank/tokens-of-betterbank/esteem.md). The interest is paid by borrowers on the Wildlands side of BetterBank.
* **Risk Level:** **Very Low** – Funds are secured with **collateral-backed loans** and liquidations protect depositors.
* **Key Features:**
  * High-yield lending markets (**50-72% APY as expected standard**).
  * Uses **Esteem** as an additional reward for depositors.
  * Borrowing requires **over-collateralization** to maintain system security.

[**Wildlands**](/better-bank/protocol-mechanics/the-wildlands.md) **– Advanced DeFi Credit Leveraging Seigniorage**

* **Primary Use Case:** Uncertain but potentially extreme rewards, using a **synthetic credit system** with [**Favor tokens**](/better-bank/tokens-of-betterbank/favor-tokens.md).
* **How It Works:** Users **earn respective Favor** token types by staking Esteem in specific groves in the Wildlands and use Favor LP as **collateral for loan positions**.
* **Apparent Risk Level:** **High** – Favor-backed positions are subject to **systematic liquidations** and interest rate fluctuations.
* **True Risk Level – Very Low**: Regardless of any liquidations, **the user's Esteem remains untouched**, meaning that Wildlands users will quickly have new free Favor to create new positions with.
* **Key Features:**
  * **Capital Efficient Borrowing** with Favor token LP acting as collateral.
  * **Demand Driven Seigniorage** based supply expansion along combined with collateralized credit **borrowing being more profitable** than selling **starkly reduces Favor sell pressure**.
  * **High risk, high reward** – A 50% liquidation of collateral occurs at **85% LTV**, resetting the LTV to about 80%, **but liquidation only strengthens the protocol and does not hurt the borrower since collateral is earned through seigniorage**.

Synergistically, **the Stronghold provides a safe lending foundation**, while **the Wildlands offers a dynamic DeFi experience** for users looking to capitalize on the protocol's growth. 🚀