Master Liquidity Pools

Overview

Master Liquidity Pools serve as the central hub for aggregating liquidity on the Lendscape platform. These pools offer several advantages:

• Diversification: Funds are distributed across various lending opportunities, reducing risk.

• Automated allocation: Smart contracts manage the distribution of funds to different Lending Pools.

• Governance-controlled: Key parameters are determined by $MBASE token holders through voting.

Interest Rate Structure

The Master Liquidity Pool employs a dynamic interest rate model that adjusts based on several factors:

1. Utilization Rate: As the pool's utilization increases, interest rates rise to attract more liquidity.

2. Risk Profile: Higher-risk loans offer higher potential returns to compensate for increased default risk.

3. Market Conditions: Rates adjust to remain competitive with other DeFi platforms and traditional finance options.

Withdrawal

Liquidity Provision and Withdrawal Epochs

To ensure stability and predictability, the Master Liquidity Pool operates on an epoch-based system:

1. Provision Epochs:

   • Fixed periods (e.g., 2 weeks) during which liquidity providers can deposit funds.

   • Deposits are locked until the end of the current epoch.

2. Withdrawal Epochs:

   • Predefined periods (e.g., monthly) when withdrawals can be requested.

   • Requests must be submitted before the epoch starts.

   • Actual withdrawals are processed at the end of the epoch.

3. Withdrawal Limits:

   • A maximum percentage of the pool (e.g., 25%) can be withdrawn in each epoch.

   • If withdrawal requests exceed this limit, they are pro-rated among requestors.

4. Emergency Withdrawals:

   • Available for a fee (e.g., 5%) in case of urgent liquidity needs.

   • Subject to available liquidity not committed to active loans.