Isolated Lending Tranches

Overview:

  • Tranches are risk-isolated groupings of assets managed by administrators.

  • Isolated tranches solve the commingling risk faced by legacy lending protocols, allowing VMEX to support all types of tranche and asset risk profiles.

  • VMEX Protocol is a “Tranche Factory” paired with VMEX DAO, a “Risk Framework Manager”. The DAO approves assets for collateral and/or lending and sets risk parameters.

  • VMEX managed tranches are curated lending pools created and fully managed by the protocol

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