Pool Deposits

Liquidity providers receive pool tokens in return for depositing compatible stablecoin tokens into the pool following a “post-money” valuation strategy, i.e., proportionally to their contribution to the total amount of capital allocated in the pool including the expected value of open option positions. This allows new liquidity providers to enter the pool at any time without harm to pre-existent providers.

Funds are locked in the pool until it reaches the pre-defined liquidation date, whereupon the pool ceases operations and profits are distributed to liquidity providers proportionally to their participation in the total supply of pool tokens.

Even so, since the pool is tokenized, liquidity providers are free to trade their pool tokens in the open market in case they need to recover their funds earlier.