How does the Balancer Pool work?
Pool Delegates and MPL Holders will deposit a combination of MPL and USDC into the MPL:USDC Balancer Pool in exchange for Balancer Pool Tokens (BPT). Holders will be able to select which pools to stake their BPTs to begin collecting Ongoing Fees. To align incentives with Lenders and cover providers, Pool Delegates will be required to provide pool cover to their Lending Pools as a reserve of first-loss capital.
In the event of a collateral shortfall after liquidation, the outstanding amount can be redeemed on Balancer for USDC which is then distributed to the Lending Pool to cover losses.
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