> For the complete documentation index, see [llms.txt](https://whitepaper.lendr.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.lendr.fi/overview/v2.1-improvements-summary.md).

# V2.1 Improvements Summary

A quick side-by-side look at what changed from **V1 (CDP-based, over-collateralized loans)** to **V2.1 (liquid-staked RWA architecture)** and why it is better for users, institutions, and developers.

<table><thead><tr><th width="128.12554931640625">Area</th><th>V1 – Old Design</th><th>V2.1 – New Design</th><th width="209.25982666015625">Why It’s Better</th></tr></thead><tbody><tr><td><strong>Core Model</strong></td><td>Users borrowed against crypto (over-collateralized). <br>Risk of liquidation.</td><td>Users swap into <strong>USDL</strong> and stake into <strong>LsRWA</strong> vaults. No loans, no liquidations.</td><td>Simpler, no liquidations, no over-collateralization. More capital efficient. </td></tr><tr><td><strong>Extra Yield</strong></td><td>Passive RWA exposure only.</td><td>Vaults run low-risk, strategies that boost RWA returns by ≈ 2-5 % a year.</td><td>Higher returns without extra steps.</td></tr><tr><td><strong>Compliance</strong></td><td>Geo-blocks only at the website/UI level.</td><td>Wallets pass a one-time KYC and can use RWA tokens anywhere.</td><td>Ready for institutions, multiple jurisdictions, and future U.S. roll-out.</td></tr><tr><td><strong>Safety Buffer</strong></td><td>RWAL stakers back system.</td><td><strong>Asset Reserve Fund (ARF)</strong>, refills automatically from fees. RWAL stakers back system secondarily.</td><td>Clear redundant protection against rare losses.</td></tr><tr><td><strong>Peg Control</strong></td><td>Relied on outside traders.</td><td>Outside traders and in-house bot trades to keep USDL near $1.</td><td>Tighter peg variance.</td></tr><tr><td><strong>Governance &#x26; Rewards</strong></td><td>Issuance and redemption fee share.</td><td>Stake RWAL to vote and earn issuance, redemption and performance fees.</td><td>Community shares in growth and governance.</td></tr></tbody></table>


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