A lender who wishes to invest in MoneySwitch first deposits stablecoin from their wallet into a Feeder Pool or a Master Pool. Feeder Pool lenders have lower risk and reward exposure relative to Master Pool lenders. This allows MoneySwitch to cater to lenders with different levels of risk appetite.
Stablecoins from all Feeder Pools is aggregated in the Master Pool. All borrowing is conducted through the Master Pool. Aggregating assets provides a deeper liquidity pool and provides diversification benefits.
When a lender deposits into a Feeder Pool or the Master Pool they will immediately start accumulating interest on any loans in the pool, and start earning MST. A lender can withdraw earned MST at any time. A lender can withdraw liquidity as long as there is enough spare liquidity in the Master Pool (i.e. all liquidity is not fully loaned).
Copy link