How Bloom V2 Works

Overview

The mechanics of Bloom V2 work similarly to a lending orderbook but with a multi-stage approach to support the three types of participants that make up the protocol, lenders, borrowers, and market makers.

Open Order

Open Orders are created whenever lenders lend to the BloomPool. When this occurs USDC is transferred to the BloomPool and held until the lender either cancels their order or a borrower matches their order request. Orders are grouped by the lenders address.

Matched Order

Matched Orders are created whenever a borrower fills a lender's open order. Borrower's matches are leveraged, so they are not required to match the lender's full order size. Matched Orders are grouped by the lender's addresses as well as a secondary grouping of borrower's addresses who filled that specific lender's orders.

Matched orders can also be canceled by lenders. If a matched order is canceled, the order will be closed out in a LIFO sequential method. Each borrower's match must be canceled in full in order to fully process the cancelation. Partial closes can only exist in the event that there are multiple borrowers that have filled a lenders request. The capital for borrowers does not get transferred back to them. Instead it will be converted to idle capital that can be used to fill future open orders, which can be withdrawn by the borrower at any time.

Once an order is matched it is eligible to be turned into a TBY and start generating yield. This is done by market makers filling this request in batches lasting 48 hours.

Live Orders

Matched Orders are converted into live orders as the market maker begins swapping bIb01 tokens into the BloomPool in exchanged for USDC . The market maker has 48 hours to complete as many orders as they would like. As the swaps occur, lenders will be minted TBYs representing their deposit into the system that will generate interest. These TBYs have a start time of 48 hours after the first swap in a batch has occurred and a maturity date 180 days after the start time.

Live orders; TBYs cannot be canceled or redeemed early as it is a fixed-maturity commercial loan and is locked for that time period.

Matured Orders

At the end of the 180 days TBYs will mature and market makers can fulfill their duties swapping USDC back into the BloomPool for bIb01 tokens. This can occur at any time and in any number of batches, but lenders do not have to wait for all swaps to be complete before redeeming theirTBYs. In the event that the swaps have begun but not finished users will be able to partially redeem proportionally to their share of a given TBY.