For firm principals and clients, stablecoin lending and borrowing can provide efficient, flexible, and low-risk yield. In many instances rates are better than achieved from a fractional reserve bank.
As stablecoins are widely accepted and traded internationally and offering high liquidity, this ensures quick access to funds and ease of conversion to other assets or fiat currencies via the Moneybrain platform.
Borrowers pay interest in the same stablecoin borrowed therefore delivering a compounding asset event, with rates determined by supply and demand in the lending pool.
Borrowers are required to deposit stablecoin collateral to the moneybrain platform exceeding the value of the loan to a certain loan to value ratio. If the loan to value ratio drops due to market volatility then a capital call is made in the first instance. If this capital call can not be honoured by the borrower, then the pledged assets will be liquidated to maintain the agreed loan to value ratio.