Pools on Altair live!

Today the Altair platform got a huge update!
My Name is Esther. I work in the product team and am here to give you an Altair update.
In this post I’ll explain what the updates are and why we have done that.

Earlier this month we upgraded the Altair chain to support pools (Runtime Upgrade 1016), and now it is time to take it one step further!

What is it?

From now on pools can be launched on Altair.

How does it work?

An issuer can set up a pool, with tranches to invest in, risk groups for assets, write off rules etc. Note that for now this is not public. On Altair a test pool will be set up, you can find the pool details on the bottom of this thread.

Once the pool is set up and investors invested into the pool selected artists are given the “borrower” rights, this means they can finance their NFT’s in this pool.
Financing their NFT means they can lock their NFT into an asset of the pool. This asset gets priced and a risk group will be allocated to this NFT. This results in an amount that the system will make available for financing for this NFT (now asset).

Artists can now finance their NFT by taking out currency from the pool. They can pay it back with the set interest rate before maturity date. There is also a writeoff schedule in place. Just in case ;).

Of course investors can also redeem their tranch tokens to withdraw their investment from the pool.

Therefore, it’s very much like how the Tinlake application works now - but more focused on NFT’s and not on Real World Assets.

Why do we do this?

Great question! We do this as a test run for our brand new Centrifuge pools which in turn will focus on Real World Assets. It might look like the same functions (although improved) as Tinlake but it’s a new chain and new technology. Therefore, we launch this single private pool on Altair to make 220% sure it all works as expected, fix any bugs and make sure any necessary improvements are implemented before we go live with pools on the Centrifuge chain later this summer.

What happens next?

The Altair Council will shortly create a motion to open this test pool and if the motion passes in the Council, there will be a public referendum that all AIR token holders can vote on. There will be a separate post on the Forum, once the Council Motion has been initiated.

That’s all,
Don’t forget that you can always post any questions below and I’ll get to them as soon as possible.

Cheers and have a lovely day.

The test pool details

2 Tranches
Junior

  • Token name: [NFT Pool 1 Junior]
  • Token symbol: [NP1JUN]
  • Min investment: [100 aUSD]
  • Min protection: [-]
  • Interest rate: [-]

Senior

  • Token name: [NFT Pool 1 Senior]
  • Token symbol: [NP1SEN]
  • Min investment: [0 aUSD]
  • Min protection: [20.00%]
  • Interest rate: [5.00%]

3 Risk groups
Lower risk

  • Advance rate: [100%]
  • Financing fee: [8.00%]
  • Probability of Default: [2.00%]
  • Loss Given Default: [100%]
  • Discount rate: [6.00%]

Medium risk

  • Advance rate: [100%]
  • Financing fee: [10.00%]
  • Probability of Default: [4.00%]
  • Loss Given Default: [100%]
  • Discount rate: [6.00%]

Higher risk

  • Advance rate: [100%]
  • Financing fee: [13.00%]
  • Probability of Default: [6.00%]
  • Loss Given Default: [100%]
  • Discount rate: [6.00%]

2 Write-off schedules

  1. Days after exp repayment date; 3 for a Write-off 50.00%
  2. Days after exp repayment date; 5 for a Write-off 100.00%
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Looking forward to see how it all works

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Council Motion 24 has been created for launching the first pool on Altair.

Find more information about the motion in this post.

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you can see the pool live here: Centrifuge App

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