ELYFI Investment
By depositing crypto assets in the Money Pool and supplying liquidity, investors can receive interest accruing from the Money Pool. In such case, liquidity can be directly supplied to the Money Pool. Liquidity can also be supplied to the Pool indirectly by purchasing a portion of the specific ABToken deposited.
Money Pool Investment
Purpose
Money Pool investors can supply liquidity to the Money Pool by depositing cryptoassets (cryptocurrencies) in the Money Pool. Cryptoasset-backed loans can be generated through the liquidity supplied, and investors receive interest on collateral-based loans. Investors can seize their crypto assets deposited in the Money Pool whenever they wish and earn interest income.
Return on Investment (ROI)
Return on the investment (ROI) in Money Pool investment arises from interest on real asset-backed loans and crypto asset-backed loans. Therefore, the ROI of the Money Pool is influenced by the following factors:
Interest rates on real asset-backed loans
Interest rates on crypto asset-backed loans
Money Pool liquidity size
Money Pool liquidity utilization rates
Based on these factors, the ROI is determined. Therefore, the interest rate and accumulated interest fluctuate in real time as the state of the money pool changes. For further information on interest rates, see the Interest Rate Model.
Liquidity Supply through Asset-Backed Bonds
Securitized ABToken (Asset Tokens, ATokens)
ABTokens backed by real assets are deposited in the Money Pool. Users can select specific tokens from various types of ABTokens and invest them directly in relevant bonds. In such cases, the users receive ATokens and can receive interest income generated from the bond based on tokens.
Investors receive ROI in bonds, proportional to the amount invested and the duration of the investment. After expiration of the ATokens, the payment of returns is stopped, and the users must recover the investment amount from the Money Pool.
Return on Investment (ROI)
Interest income when liquidity is supplied to the Money Pool varies depending on the situation of the Money Pool, whereas investors who directly invest in asset-backed bonds can receive interest at a constant rate. This is because when investors buy asset-backed bonds, they receive interest from the relevant collateral-based loans. Since real asset-backed loans are created at a fixed interest rate, if investors invest directly in the asset-backed bonds, they can receive interest at a fixed rate. Thus, an investor who invests in a single asset (bond) class can expect a constant ROI over the investment period and can establish a predictable fund management plan.
Liquidity Supply Process by ABToken
Users who invest in ABTokens can check the return and maturity information of those ABTokens. After confirmation, they can exchange the ATokens and cryptocurrencies.
At this time, cryptocurrencies exchanged by the users are transferred to the Money Pool to provide liquidity to the Pool.
Users can earn interest in proportion to the account balance of their tokens.
The principal can be recovered by exchanging the Atokens and crypto assets upon maturity of the asset-backed loans or at the time that lenders desire.
Last updated