Stake

Staking is essential for Lending Pool operation and is exclusive to the First Loss Capital Provider. A Lending Pool cannot be created without initial capital staked by the First Loss Capital Provider, and this stake will act as first loss capital in the event of loan defaults. Upon staking, an equivalent amount of Pool Tokens are minted and locked in the Lending Pool. A First Loss Capital Provider’s staked position will also appreciate in value from interest payments in the same way as the Lender positions do.

There is no limit for how much capital can be staked by the First Loss Capital Provider. The First Loss Capital Provider should be aware that staking funds into the pool will increase the Pool Funds Limit, i.e. the total amount of capital a Pool can hold. See Pool Funds Limit for additional details.

The First Loss Capital Provider's staked balance is publicly visible as part of available Lending Pool data.