Borrowers can take out loans from the Money Pool using real assets as collateral. Bonds are created through legal contracts that use real assets as collateral, and the contracts are linked with ABTokens in the form of non-fungible tokens (NFTs). As ABTokens are deposited as collateral in the Money Pool and loans are made, financial services that link real assets and cryptoassets can be achieved.
Borrowers can borrow other types of cryptoassets using their own crypto assets as collateral. Interest rates on such loans depend on the status of the Money Pool, and borrowers must repay the loaned assets in order to seize and recover the collateral. There is no specific loan maturity date, and if the prices of collateral or the loaned cryptoassets change, the collateral may be liquidated.
Borrowers can deposit funds in the Money Pool and receive a return on investment (ROI) in exchange for liquidity supply. The ROI depends on the size of a loan made through the liquidity supplied. The borrower can terminate the investment by recovering their assets deposited in the Money Pool.
Lenders can directly purchase ATokens against ABTokens deposited in the Money Pool as collateral and receive the interest arising from the relevant real asset-backed loans. Funds can be recovered by redeeming the ATokens. All ATokens are destroyed after redemption.