Liquidity requests enable customers to access funds from the MasterPool, helping meet their immediate financial needs.
When customers complete the onboarding process, they are allocated a credit limit, which represents the maximum amount of liquidity they can access at any given time. Whenever they request liquidity, as long as there is sufficient available liquidity within the MasterPool and the requested amount will not exceed their credit limit, the requested liquidity will be transferred to them.
The protocol utilizes the following equations to update the system upon liquidity request initiation. The first equation increases the total amount of liquidity borrowed by the size of the liquidity request. The second equation updates the aggregated weighted-average interest rate as a result of a new liquidity request. As the system has the ability to vary interest-rates for each customers, loans with higher interest-rates will tend to increase the aggregated weighted-average interest rate, and loans with lower interest-rates will decrease the aggregated weighted-average interest rate.
The system will also update several variables that monitor the status of the customer making the liquidity request as well as the liquidity request itself. This includes the total amount of liquidity a customer has outstanding, as well as the loan principal and interest rate. These variables allow us to effectively manage and evaluate the liquidity process for our customers.