Primary token dealer

Stabilizers can invest in tokenized assets with primary purchase and redemption rights. This streamlines the redemption process.

Leveraging tokenizers

The Stabilizer is controlled by a qualified buyer, and it qualifies to communicate with an on-chain for primary sales and redemptions. It can send USDx, and receive tokens, or send tokens, and receive USDx. Often, the vendor vault will respond to the purchase and redemption requests with a delay for settling off-chain trades.

The Stabilizer will sell tokens if it is directed to sell by the buyer, or if there is a condition of default. It will be in default if the equity ratio is less than the minimum, or if the borrower did not respond to a call request. In this case, it has a choice of two mechanisms. It can sell into an on-chain market, or it can start a redemption.

The redemption process will be more efficient under conditions of market stress, when on-chain markets are small and liquidators are short on capital.

Borrowers can also use the Stabilizer as a normal lending vault by depositing and withdrawing tokens.