The Indentura platform enables decentralized communities and sharks to create pools by establishing and approving pool parameters, enabling deposits and withdrawals into pools, and providing reporting and monitoring to track performance, attribute yields, and ensure that pool deployment adheres to community-defined pool parameters.

Pool Creation

Pools are created either by DAO-governed communities or sharks. For shark-managed pools, the Indentura platform enables sharks to coorindate with agents and whales. DAO-governed communities or sharks provide details on the pool strategy and propose pool parameters including eligibility criteria and portfolio concentration limits, which serve as guardrails for how pool funds are deployed. Sharks and whales may also decide to put in place additional risk mitigation including early amortization triggers and minimum sponsor pool percentage.

See below for definitions of illustrative pool parameters:

• Eligibility Criteria - Defines what types of assets, venues and/or blockchains pool funds can be deployed for. Asset eligibility criteria can include a list of eligible tokens, maximum loan-to-value (LTV) and/or minimum interest rates.
• Portfolio Concentration Limits (PCLs) - Portfolio concentration limits define the maximum percentage of the overall pool that can be allocated to a particular asset, venue and/or blockchain
• Early Amortization Triggers - An early amortization trigger defines events that cause pool deployment to be halted and funds to be transferred back to liquidity providers (i.e., whales and sharks). This helps mitigate the risk of loss to whales if the pool strategy experiences principal losses.
• Minimum Shark Pool Percentage - The minimum shark pool percentage defines how much capital sharks must have in the pool. This promotes incentive alignment between sharks and whales by mandating that sharks have capital at at stake. When pools are tranched, this also defines the first loss capital threshold that sharks must put at risk before whale deposits are in danger of experiencing losses.

Once pool parameters are defined they are approved by via DAO governance forums and pool pages are deployed in the Indentura app.

Servicing Deposits and Withdrawals

Once pool pages are created, whales can deposit into the pool after submitting whitelist requests via the Indentura app. Once approved, whales deposit tokens into the pool by connecting their wallet and transferring the funding token of the pool. In return for depositing, whales receive an LP token representing their share of the pool based on the rate between the funding token and LP token at the time of the deposit. Agents either approve or return deposits during a timeframe called a locking period during which deposits remain in a pending state.

LP token holders, such as whales, can request withdrawals from the Indentura app. The Indentura app provides an estimated funding token amount for the withdrawal request based on the rate between LP tokens and funding tokens at the time of request. Withdrawal requests are processed after a timeframe called a cooldown period. The actual amount of funding tokens that is transferred back to LP holders is based on the rate at the time of processing.

Funds Deployment

The Indentura platform has two models to support funds being deployed in line with pool parameters:

• MPC Wallet Policies - Deployment is done from MPC wallet solutions with policies that allow list only those contracts, venues and tokens that are specified in pool eligibility criteria