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Investors finance the Borrower's Vault by depositing digital assets and receiving Vault tokens.
Yes, each Borrower's Vault will have specific verification requirements. For all Vaults, there is a mandatory minimum requirement (enforced by the Treasury) to scan Investor wallet addresses using Blockchain Monitoring Tools like TRM Labs, Elliptic or ChainAnalysis.
Additionally, some Vaults might also require Investors to verify their identity and/or addresses. These additional verification requirements are defined during the negotiation of the loan terms between the Treasury and The Borrower.
- Vault Tokens are minted at Vault creation. The total amount minted will always equal the principal amount of the loan.
- During the Vault funding phase, for every digital asset deposited by Investors into the Vault, they receive a Vault Token at a 1:1 exchange rate.
- The Vault Tokens increase in value over time as loan repayments are made by Borrowers/Payment Actors.
The Trilobyte team is currently evaluating the possibility to make the Vault Tokens tradable and transferable since this opens up opportunities for secondary markets. However, since the Soroban smarts contract platform is not live no final decision has been made. The two approaches we are evaluating are the following ones:
- 1.Make Vault Tokens tradable and transferable: For this, Vault Tokens will be Stellar Classic tokens supported by the operations of the Stellar Network
- 2.Make Vault Tokens non-tradable and non-transferable: For this, Vault Tokens will be Soroban tokens.
The price of the Vault Token is based on the following formula:
Total Supply of Vault Tokens
Total Vault Assets
Cash in the Vault EMI Pool (cash owed to Investors)
Outstanding Debt (loan principal + interest)
The above formula is not applicable while the Vault is in its Funding Phase. During the Funding Phase, the price of the Vault Token is equal to 1