Pool Mechanics

The Lending Pool is at the heart of the Sapling protocol. Managed by a Pool Manager, the Lending Pool contract can issues loans and can also offer pool tokens to Lenders wishing to deposit capital into the pool. Contract parameters controlled by the Protocol Governance will limit the maximum size of each Lending Pool and the amount of fees that a Pool Manager can accrue, whilst contract parameters controlled by the Pool Manager will dictate the terms of the loan for each Borrower.