Introducing Untangled Pool
Untangled Pool is a RWA credit infrastructure project that facilitates the tokenization, issuance, investment, monitoring, and redemption of RWAs on the blockchain.
Our mission is to bridge the gap between TradFi and DeFi, making private credit, previously accessible only to large financial institutions, available to DeFi investors worldwide in a risk-adjusted manner. By doing so, we enhance access to private credit for DeFi investors and simultaneously broaden financing avenues for the backbones of economic growth—SMEs, providing them with more diverse funding options beyond traditional channels.
Assets and Structure
Untangled collaborates with financial institutions like Fasanara and has access to over 140 fintech lenders, each vetted and funded through a comprehensive six to eight-month due diligence process. This rigorous evaluation ensures that assets brought on-chain are of institutional quality.
Each investment pool is linked to a real-world securitization vehicle based in Luxembourg, a structure that has been established and trusted in TradFi for decades. Assets within the pool are completely ring-fenced from the originator’s balance sheet, enhancing investor security and protection.
On-chain securitization allows for the pooling of a diverse portfolio of assets—from SME loans to receivables—into structured products that can be segmented according to risk and return profiles. This granularity enables investors to tailor their investments precisely, aligning their risk tolerance and investment objectives with specific segments of an asset pool.
Credit Oracle Infrastructure
The RWA DeFi sector has experienced a high rate of defaults due to a lack of robust credit risk management and monitoring tools. Untangled is addressing this challenge by pioneering a decentralized Credit Oracle Infrastructure. By leveraging both on-chain and off-chain data, along with zero-knowledge proof technology and AI, this infrastructure delivers real-time credit pricing data. This enhances the ability of protocols and investors to dynamically manage risks. For more information, visit: Credio.network.
Liquidity and Liquidation
Version 1 of the Untangled Protocol facilitates redemption through a monthly EPOCH process. Redemption requests are fulfilled from the reserve within the pool, subject to availability and capacity. After the initial subscription period, new investors may occasionally have the opportunity to add liquidity. In specific instances, as detailed in pool-specific documentation, originators may agree to fulfill all or part of the redemption requests, albeit at a cost.
In Version 2, Untangled is developing a liquidation mechanism to enhance security and response to asset performance issues. If the quality of assets within a collateral pool deteriorates below a predetermined threshold, a liquidation process is triggered. Relevant collaterals will be auctioned, either on-chain or off-chain, to repay investors. Additionally, when assets are performing well but investors seek to exit for liquidity reasons, the protocol will facilitate an on-chain Dutch auction. This mechanism allows new investors to seamlessly take over the portion exited, ensuring continuity and stability in the investment landscape.
Invest in Untangled pools
The Untangled protocol is designed for accredited investors, professional investors, and high net-worth individuals. To ensure both accessibility and the integrity of investments, a minimum investment threshold has been established. Prospective investors are required to undergo the Verification Process before they can participate. Once verified, investors gain access to detailed analytics and documentation for specific investment opportunities within the protocol
In the documents that follow, you will find detailed introductions to key concepts of the protocol, user guides, and developer documentation.