Flexible Lending Pools

Kaleido introduces flexibility into decentralized lending by allowing multiple borrowers to access a single lending pool. This feature provides lenders with greater control over their funds and allows borrowers more opportunities to access loans with favorable terms. This section explains how flexible lending pools work and the benefits they offer.

Pool Flexibility

Flexible lending pools give lenders the ability to create a pool of funds that can be accessed by multiple borrowers. Lenders can customize their pools to set different terms for different borrowers, enhancing both risk management and earning potential.

• How it Works: After setting up a lending pool, lenders can decide how much of the total pool each borrower is allowed to access. This ensures that no single borrower monopolizes the funds, and it allows lenders to diversify their risk.

• Borrower Allocation: Lenders can specify the percentage of the pool each borrower can draw. For example, if a lending pool has $10,000, the lender might allow one borrower to take 40% and another to take 60%, or divide it among several smaller borrowers.

Pool Allocation Percentage

Allocating percentages to different borrowers helps lenders manage risk and ensure that the pool is utilized according to their preferences. Here’s how to set it up:

• Set Maximum Borrower Limit: Define the maximum percentage a single borrower can access. This prevents any one borrower from using up too much of the pool.

• Allocate Based on Borrower Needs: For borrowers with a solid reputation or higher collateral, lenders might allocate a larger percentage, while smaller borrowers or those with higher risk factors might get a smaller portion.

Benefits of Flexible Pools

• For Lenders:

  • Risk Diversification: By lending to multiple borrowers, lenders reduce their risk exposure to any single borrower.

  • Increased Earnings: Lenders can maximize the utilization of their pool by distributing funds to multiple borrowers, ensuring continuous returns.

  • Customization: Flexibility in setting terms for each borrower allows lenders to tailor their risk and return preferences.

• For Borrowers:

  • More Loan Opportunities: Borrowers benefit from multiple lending pools where they can negotiate terms with different lenders.

  • Flexible Terms: Borrowers have the chance to secure more favorable loan conditions by accessing various pools rather than relying on a single lender.