Why might Haedal Lending Vault put the next deposit into a market with a lower displayed rate?
Imagine two lending markets quoting 10% and 8%. If a large allocation increases supply in the first market while borrowing stays flat, the rate available after deployment could fall. The second market could then deliver a better outcome for part of the allocation. These numbers are illustrative, not live vault rates.
The relevant comparison is the expected return after deploying capital at the intended size. It also depends on how readily the strategy can move that capital again if borrowing demand changes.
For $HAEDAL watchers, this is a useful way to evaluate managed lending on $SUI: ask where the next unit of capital can earn a competitive return without taking on disproportionate concentration. NFA.
#HAEDAL #Haedal @HaedalProtocol
Imagine two lending markets quoting 10% and 8%. If a large allocation increases supply in the first market while borrowing stays flat, the rate available after deployment could fall. The second market could then deliver a better outcome for part of the allocation. These numbers are illustrative, not live vault rates.
The relevant comparison is the expected return after deploying capital at the intended size. It also depends on how readily the strategy can move that capital again if borrowing demand changes.
For $HAEDAL watchers, this is a useful way to evaluate managed lending on $SUI: ask where the next unit of capital can earn a competitive return without taking on disproportionate concentration. NFA.
#HAEDAL #Haedal @HaedalProtocol
