How do Lending Pools work?
Lending Pools are established and managed by credit experts and asset managers, known as Pool Delegates. Pool Delegates participate by liaising with Borrowers, credit assessing them and agreeing terms with them before lending capital from their actively managed Lending Pool. Once a Pool Delegate creates a Lending Pool, they are required to provide Pool Cover to their Lending Pool to serve as first-loss capital to the Pools, aligning their interests with Lenders. MPL Holders will have the opportunity to provide Pool Cover to Lending Pools to provide default insurance.
Lenders will be able to select which Lending Pools to deposit to so to earn a sustainable yield.
Copy link