Depositors
Last updated
Last updated
Depositors evaluate deals proposed by borrowers and supply USDC, USDT or DAI to fund fixed pools on the Stabledapp.
Once a Fixed Pool Application is approved by the committee of Auditors, an NDA-gated data room is set up to be viewed by potential depositors. The data room would contain all information pertaining to the proposed deal and third-party deal analysis produced by leading consulting firms, financed by protocol fees.
Some borrowers due to either preference or regulatory stipulation are forced to only accept financing from institutional investors hence one of the decisions to be made in the Borrower Deal Proposal is whether a pool is institutional grade or open to all depositors.
Institutional investors must register to be in the Acumen ecosystem through the institutional investor form on the Acumen Network website so that when an institutional grade Fixed Pool becomes available, they can access the NDA gated data room containing all information pertaining the deal through their listed communication format.
Once the requested period of time has passed for institutional investors to get accustomed with the proposed deal, the institutional grade Fixed Pool is placed on the Stabledapp. The institutional grade Fixed Pool is viewable by all Stabledapp users however deposits are only accessible to whitelisted wallets of institutional investors in the Acumen ecosystem.
Open pools are Fixed Pools that are sanctioned to be available to all depositors within the Acumen ecosystem. Post Auditor approval they are announced on all Acumen communication and media channels to perspective depositors. An NDA gated data room is then set up and made publicly available to all through the Stabledapp.
Once the requested period of time has passed for all depositors to get accustomed with the proposed deal, the Fixed Pool is placed on the Stabledapp. The open Fixed Pool is viewable by and open for deposits to all Stabledapp users.
Having had the Fixed Pool placed on the Stabledapp platform approved users would be able to deposit with USDC, USDT or DAI, stablecoins which are pegged 1:1 to USD, by connecting their wallet to the Stabledapp and allocating the amount they want to deposit. USDC and USDT are centralized stablecoins backed with short term treasuries and cash held by the real world firms Circle and Tether. DAI is an algorithmic stablecoin backed with on chain collateralized debt denominated mostly in stablecoins such as USDC & USDP, Ethereum and Wrapped Bitcoin held on the decentralized platform Maker DAO.
The stablecoins would be deposited into the Stabledapp smart contract wallet and depositors would then be issued a Collateral Token by the smart contract to the wallet that made the deposit. The value of the Collateral Token would represent their share of principal underpinning a Fixed Pool and any interest earned on top of that which would be paid out according to the terms defined in the deal.
where:
Ct = Collateral Token
d = User total deposit; The amount of stablecoins (USDC, USDT or DAI) the user has deposited into a given Fixed Pool
ie = Interest Earned by user; The amount of interest earned on deposited principal as calculated by the Stabledapp smart contract
Note: Collateral Tokens can be made non-tradable by borrowers
The interest earned by a depositor is calculated by multiplying the amount deposited, the annual percentage yield (APY), the utilization, and the duration and then dividing the result by a precision factor. The precision factor takes into account the different units of measure used for the APY and the duration.
where:
ie = Interest Earned by user; The amount of interest earned on deposited principal as calculated by the Stabledapp smart contract
d = User total deposit; The amount of stablecoins (USDC, USDT or DAI) the user has deposited into a given Fixed Pool
r = APY rate; The annual interest rate for the pool
u = Utilization; The utilization of the pool
D = Duration: The length of time that the tokens will be staked for.
1y = 1 year
pf = Precision Factor; Takes into account the different units of measure used for the APY and the duration
Note: The formula assumes the use of specific units for the APY rate, duration, and precision factor, which are all defined in the deal proposed by the borrower. Utilization rate should always be 100% for Fixed Pools.
Example: if you were to deposit 1000 USDC for 1 year in a pool with a 10% annual percentage yield (APY) and 100% utilization, this code would calculate the interest earned as 100 USDC. The calculation takes into account the different units of measure used for the APY and duration to come up with an accurate result.
Fixed Pool Liquidity is available according to the terms that are defined in the deal proposal commonly these would be on a monthly, quarterly, or yearly basis. To find out when liquidity is available depositors can check the repayment schedule on the Fixed Pool specific page on the Stabledapp. Once a payment from a borrower becomes available depositors holding the Fixed Pool specific Collateral Token can connect their wallet to the Stabledapp and burn a proportional amount of their Collateral Token to the percent of interest and principal paid out by the borrower. Thus, receiving either USDC, USDT or DAI based on the stablecoin that they deposited initially to fund their chosen Fixed Pool.