Casten Protocol
  • Casten
    • The Need and Vision
    • Glossary of Terms
    • Protocol Ecosystem
      • Underwriters/Asset Managers
      • Borrowers
        • Creating Borrowing Pools
        • Junior and Senior Tranches
        • Origination Fee
        • Repayment motivations
      • Senior Tranche LPs
        • Supplying to the Senior Pool
      • Junior Tranche Holders
        • Supplying to Borrower Pools
    • Annual Returns Model
    • Unique Identity Check(KYC)
    • Casten Risk Oracles
    • Legal Structure
      • Asset Finance Flow
    • Casten Advantage
    • Use Cases
    • Protocol Smart Contracts
      • Casten Protocol Contract Architecture
    • Casten Ecosystem Grants
      • Key Opinion Leaders (KOL) grants.
Powered by GitBook
On this page
  1. Casten

Annual Returns Model

Breaking down returns for junior and senior tranche participants

PreviousSupplying to Borrower PoolsNextUnique Identity Check(KYC)

Last updated 3 years ago

Investors are rewarded with stable, de-risked, inflation-beating yields, along with access to trillions of dollars of real world origination. Investors may come from a variety of channels, including CeX, DeX, family offices, institutional investors, private HNI investors and other treasuries.

As an example, say a pool originated has a trache profile of 80% senior, and 20% junior. With the financing rate at 8.4%, the senior tranche earns 6%, and junior tranche earns 18%.

Following sheet illustrates certain example scenarious of the model:

https://docs.google.com/spreadsheets/d/1RSWs0qAuH_OpeGInncbOT6O9PpPQEyE_SEIuixhldDU/edit#gid=0