Lenders define their personal Fixed Income Funds. Lenders deposit into their FIF's. And platform matches the FIF's with the borrower's credit lines.
Lenders lend via their personal Fixed-Income Funds (FIF). They define into which maturities they want to invest a ratio of their assets. This allows lenders to mix different loan maturities and create a preferred loan portfolio.
A FIF consists of four buckets:
- “Bucket 0” will be invested into Compound’s variable-rate money-market fund.
- “Bucket 1” will be invested into loans 11–30 days
- “Bucket 2” will be invested into loans 31–90 days
- “Bucket 3” will be invested into loans 91–180 days
The investor can also create multiple FIFs. For example, the investor could create:
- First FIF for short-term lending strategies
- Second FIF for longer-term lending strategies
Or the investor could, for example, choose only one bucket for his investments:
- Only bucket 1 for loans 11–30 days OR
- Only bucket 2 for loans 31–90 days
This means - the lender can choose strategy, which matches best his expectations. Lender can allocate more funds into the "bucket 2" or "bucket 3" - and earn more interest. Or lender could allocate more funds into the "bucket 0" or "bucket 1" - and have higher flexibility, but less interest.
The following assets are supported for lending:
Supports buckets 0, 1, 2 and 3