# Participants

### Lenders

Lenders are non-kyced, non-permissioned participants who lend USDC to borrowers for short-dated 6 month maturity receipt tokens, called Term Bound Yield tokens or `TBYs` for short. At the end of the token's maturity the lender will have the ability to redeem their `TBY` for their original principal amount plus any yield that is generated during the 6-month time period. 

### Borrowers

Borrowers are fully KYCed and permissioned users who borrow lender's funds in order to facilitate the purchase of Backed Finance's bIb01 tracker token which derives it's price based on the [Blackrocks ib01 Treasury Bond ETF ](https://www.blackrock.com/americas-offshore/en/products/307243/ishares-treasury-bond-0-1yr-ucits-etf). 

### Market Makers

Market Makers are fully KYCed and permissioned users who swap Backed's `bIb01` token and USDC in and out of the `BloomPool` in order to kickstart the yield generating process of `TBY`s.