Capital Aggregation
At cSigma Finance, we understand the importance of simplifying processes for institutional borrowers. Here’s how we streamline operations and ensure smooth liquidity management through Edge Pools.
Last updated
At cSigma Finance, we understand the importance of simplifying processes for institutional borrowers. Here’s how we streamline operations and ensure smooth liquidity management through Edge Pools.
Last updated
Operational Structure of Edge Pools
To reduce operational overhead for institutional borrowers, we’ve established a Panama-registered entity that acts as the Pool Manager for Edge Pools. This entity operates on behalf of borrowers, effectively serving as the lender entity on cSigma’s institutional platform.
This middle-layer structure enhances convenience and regulatory clarity by:
Simplifying Processes: Borrowers don’t need to manage multiple wallets across different chains.
Ensuring Compliance: The Panama/Cayman-based Pool Manager oversees fund movements while adhering to global regulatory standards. The Lenders can see the fund movements transparently using the Pool Manager addresses provided in the documentation.
Reducing Administrative Burdens: Borrowers can focus on their core operations while the Pool Manager handles liquidity aggregation and redistribution.
How It Works
Collecting Funds:
Edge Pools are operational on Ethereum, Arbitrum, and Base.
The Pool Manager gathers capital from these pools and consolidates it on Ethereum, our primary chain.
Sending Funds to Borrowers:
Aggregated liquidity is transferred to borrowers on Ethereum, eliminating the need for borrowers to manage multiple wallets.
Handling Repayments:
Borrowers repay their loans on Ethereum.
The Pool Manager redistributes the repaid capital back to master pools on the original chains using bridges.
Key Benefits for Borrowers
One Wallet, One Chain: Borrowers only need a wallet on Ethereum, simplifying operations.
Operational Efficiency: The Pool Manager handles all cross-chain complexities.
Focus on Core Operations: Borrowers can concentrate on their business while cSigma ensures smooth liquidity management.
This streamlined structure highlights our commitment to making institutional borrowing on cSigma Finance as seamless and user-friendly as possible. Let us handle the complexities while you focus on what matters most.
