The possibility of multiple MasterPools increases flexibility, and provides optionality for different currencies, or funding approaches.
MoneySwitch has designed its protocol to accommodate multiple MasterPool/FeederPool systems. The process is straightforward: create a new MasterPool and then add FeederPools accordingly. Although the need for a large number of MasterPool/FeederPool systems is not currently anticipated, this capability opens up additional possibilities.
For instance, it allows for the creation of distinct MasterPool/FeederPool systems for different currencies. Additionally, it is feasible to establish a MasterPool/FeederPool system with a limited selection of borrowers or even just one borrower. This approach resembles the funding-based model mentioned earlier, wherein a small group of investors chooses to fund and interact exclusively with a single borrower.
Multiple MasterPools with Adaptive Pooling
If needed, it is also feasible to introduce a new MasterPool/FeederPool system and facilitate a smooth transition for depositors and borrowers, all without the need to restart the entire protocol. This flexibility allows for seamless migration and minimizes disruptions to the system’s operation.