Pool Structure
Lending pools are the core mechanism connecting investors with borrowers by aggregating capital to fund loans with specific risk profiles.
Pool Types
| Type | Purpose | Target Borrowers | Risk Level |
|---|---|---|---|
| Small Business | Working capital, inventory | SMBs, startups | Medium |
| Real Estate | Property loans, mortgages | Property owners | Lower |
| Consumer | Personal loans, credit | Individuals | Higher |
| Mixed | Diversified portfolio | Various | Balanced |
Pool Lifecycle
DRAFT → ACTIVE → PAUSED → CLOSED
↓
DEPLOYED
| State | Description | Allowed Actions |
|---|---|---|
| DRAFT | Configuration phase | Edit parameters |
| ACTIVE | Normal operations | Stake, unstake, borrow, repay |
| PAUSED | Temporarily halted | Unstake, repay only |
| CLOSED | Permanently closed | Unstake, repay only |
| DEPLOYED | On-chain via admin | Full blockchain operations |
Pool Configuration
Fee Structure
| Fee Type | Range | Default | Description |
|---|---|---|---|
| Management Fee | 0-10% | 2% | Annual fee on TVL |
| Performance Fee | 0-30% | 20% | Fee on realized returns |
Risk Parameters
| Parameter | Range | Description |
|---|---|---|
| Base Interest Rate | 0-100% | Starting rate before adjustments |
| Risk Premium | 0-100% | Additional rate based on DSCR |
| Minimum Credit Score | 300-850 | Not currently used (DSCR-based) |
| Maximum LTV | 0-100% | Loan-to-value cap |
| Allowed Industries | List | Permitted borrower industries |
Pool Economics
Return Calculation
Gross Returns = Interest Payments + Late Fees - Defaults
Net Returns = Gross Returns - Management Fee - Performance Fee
Share Model
When investors stake:
- Deposit — Investor stakes USDC
- Share Minting — Receives pool shares proportional to stake
- Yield Accrual — Share value increases as pool earns
- Withdrawal — Burns shares to receive USDC
Share Price Formula
Shares Received = (Stake Amount × Total Shares) / Total Pool Value
Share Value = Total Pool Value / Total Shares
Example
Initial State:
- Pool Value: $1,000,000
- Total Shares: 1,000,000
- Share Price: $1.00
Investor stakes $10,000:
- Receives: 10,000 shares
- Ownership: 1% of pool
After pool earns $50,000:
- Pool Value: $1,050,000
- Share Price: $1.05
- Investor Position: $10,500
Investor Participation
Minimum Stakes
| Pool Type | Minimum Stake |
|---|---|
| Small Business | $1,000 |
| Real Estate | $5,000 |
| Consumer | $500 |
| Mixed | $1,000 |
Staking Process
- Approve USDC for StakingPool contract
- Execute stake transaction
- Receive pool shares
- Begin earning yield
Unstaking
- Cooldown Period — 7 days after unstake request
- Partial Unstakes — Allowed
- Share Lock — No yield during cooldown
Risk Factors
Pool-Level Risks
| Risk | Mitigation |
|---|---|
| Default Risk | DSCR-based underwriting |
| Concentration Risk | Diversification across borrowers |
| Liquidity Risk | Utilization caps |
| Smart Contract Risk | Audits, bug bounty |
Investor Considerations
- Diversify — Don't exceed 30% in any single pool
- Monitor — Track pool health metrics
- Understand — Know the risk profile before investing
Pool Metrics
Health Indicators
| Metric | Healthy Range |
|---|---|
| Utilization | 60-80% |
| Default Rate | < 2% |
| Average DSCR | > 1.25 |
| Concentration | Top 10 loans < 30% |
Performance Metrics
| Metric | Description |
|---|---|
| APY | Annualized yield |
| TVL | Total value locked |
| Net Returns | After fees |
| Sharpe Ratio | Risk-adjusted return |
Next Steps
- Staking Guide — How to stake
- Risk Assessment — Evaluating pools
- Creating Pools — For pool operators