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Investors can commit capital either directly or by depositing to the pool
Loans accessible through Kona (still) are perishable by nature, requiring the investor to actively manage maturities to maintain a high APY. Therefore, we thought it would be neat to offer investors two options of earning yield.
In this option, investors will be able to pick and choose the facilities they want to invest. Opening an array of possibilities with different yields and maturities. Once new forms of collateral are integrated, the horizon of possibilities is even further expanded to mix, match and diversify within the platform.
However, with great power comes (not so) great responsibility. Direct investors will have to manage pool maturity in order to keep a steady APY, because loans are short term and non-fungible. Inactive investors will be let sitting on a big pile of un-yielding (stables) cash.
The AutoPool is the solution we found to accommodate the everyday investor, who doesn't want to actively manage his position but still wants to take part in awesome real world yields (that were formerly only accessible to financial institutions). Talk about throat cutting democratization!
By investing in the pool you will be automatically taking part in every individual loan offered in the platform. The pool will dynamically display the current lock-up period based on the combined duration of all facilities. As more facilities get deployed, the lock-up period trends downwards.
So you get to have the protocol manage your capital (so that it is never idle) and get more liquidity (lower lock-up), what's the catch?
The only clear trade-off we see here is the added risk by having one more smart contract between you and those shinny coins you deposited.
- Facility and Pool token: Kona is studying the feasibility of issuing ERC-20 receipt tokens for pool investors and NFTs for Facility direct investors. The solid nature of real world receivables combined with a receipt would create the perfect collateral for other protocols.
- Senior Pool: Kona currently offers direct exposure to yields being generated by discounting real companies' receivables. This is extremely attractive for institutional investors (they have been investing in this asset class for a while) at a senior level. We are modelling and studying the feasibility of implementing an institutional grade senior pool, which would provide leverage to subordinated (common) investors.
- FX Hedged USD Pool: Kona's underlying loans are currently in BRL (Brazilian Reais) and are exposed to its volatility. We plan to rollout a fully hedged pool where we eliminate FX risk by using NDF (at first). We will be working with stablecoins to develop a on-chain equivalent of an NDF in a more distant future to eliminate any centralization risk.