The USDC Pool within the Unlockd protocol represents a specialized liquidity pool designed for a specific class of loans.

This pool is distinctively set up for handling loans where the collateral comprises tokenized Real World Assets (RWAs) or token streams.

This isolation is strategic, catering to the unique characteristics and risk profiles associated with RWAs and token streams. By doing so, the USDC Pool provides a more tailored lending and borrowing environment, ensuring that these particular types of collateral are managed with the appropriate level of expertise and risk assessment.

In this pool, lenders deposit USDC, a stablecoin pegged to the US dollar, which offers a stable value proposition in contrast to more volatile cryptocurrency assets. This stability is particularly advantageous for loans backed by RWAs, as it aligns more closely with the valuation and behavior of real-world financial markets.

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