Liquidity pool features

Svim Finance real-world assets tokenization protocol liquidity pool typically encompasses several key features. The process begins with pool creation, where a specific type of tokenized real-world asset, often linked to a particular borrower, is selected. The pool parameters, such as loan amount, interest rate, investment yield, loan term, collateral information, collateral ratio, and liquidation clauses, are defined to ensure clarity and security for all participants.

Comprehensive due diligence is conducted to verify the quality and legal standing of the assets involved. Liquidity providers then supply capital to the pool, enabling the tokenized assets to be traded and used for investment purposes. Borrowers make payments according to the agreed loan terms, including principal and interest, which are processed and converted from fiat to stablecoins for distribution back to the investors. The protocol also accounts for prepayment options, allowing borrowers to repay their loans early.

In cases of default, Svim Finance works with our network of asset partners and service providers to initiate the collection process to recover the owed amounts, followed by liquidation of the collateral if necessary. This liquidation process determines the extent of recovery and impacts the investment returns, ranging from full principal and expected yield to partial or no recovery of the investment principal.