Maintains the advantages of liquidity concentration
Achieves higher fund efficiency
Allow lenders to withdraw their funds at any time
Passively manage rate risk
Rates are determined by the supply and demand of funds in the market
The term structure of different maturities helps to stabilize interest rates
Simplifies interest rate risk management.
Offers richer trading functions for a liquid market.
Collateral segregation enables more accurate risk pricing
The price smoothing mechanism optimizes the borrower's liquidation risk