Isolated Lending Tranches
- Tranches are risk-isolated groupings of assets managed by administrators.
- Isolated tranches solve the commingling risk faced by legacy lending protocols, allowing VMEX to support all types of tranche and asset risk profiles.
- VMEX Protocol is a “Tranche Factory” paired with VMEX DAO, a “Risk Framework Manager”. The DAO approves assets for collateral and/or lending and sets risk parameters.
- VMEX managed tranches are curated lending pools created and fully managed by the protocol