Borrowers
Overview
Borrowers are fully KYCed and qualified users who can borrow lender's funds to strictly facilitate the purchase of Backed Finance's bIb01
token, which represents Blackrocks ib01 Treasury Bond ETF.
Yield Generated
Borrowers generate returns based on the spread between the value of a given TBY
and the value generated from the bIb01
token during the 6-month duration of the TBY
. At the end of the 6-month maturity date, market makers complete the final swap, borrowers can redeem their yield by calling BloomPool::redeemBorrower
and passing the token id
of the relevant TBY
. This will withdraw the maximum amount of liquidity available for the borrower based on how much liquidity the market maker has swapped for that token id
and the borrower's share of matches for that id
.
How to participate
Borrowers must be fully KYCed to participate in the system. If you are interested in becoming a borrower please reach out to us at Support@Bloom.garden
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