Pool Funds

Pool Funds Limit

The Pool Funds Limit (PFL) is the total amount of capital allowed in a Lending Pool, limited by the amount of first loss capital staked into the Lending Pool by the Pool Manager and the Target Stake Percentage, a parameter controlled by Protocol Governance. The default value of Target Stake Percentage is 10%.

PFL is calculated as:

$$PFL = stakedFunds * \frac{100\%}{targetStakePercent}$$

Total Pool Capital

Total Pool Capital represents the sum of liquid funds in the pool, funds allocated for the drafted and active offers, outstanding loan principals, and the outstanding yield. Total pool capital of the Lending Pools can be queried by using the poolFunds function on the smart contract.