Any yield source.
Structured for the world.
You are about to launch a Royco market that splits a yield source into Senior, Junior, and Senior LP tranches.
Depositors choose the profile that fits them. Senior earns protected yield with instant exits. Junior earns the risk premium for taking the first loss. Senior LP retains protection and earns the liquidity premium for providing secondary liquidity.
A single transaction deploys the whole structure.
- Seniorprotected capital
Earns the strategy's yield less a risk premium, and is shielded from losses up to the full depth of Junior's coverage.
- Juniortakes the first loss
Co-invested in the same strategy and written down first. Earns the base yield plus a levered risk premium from Senior.
- Senior LPprovides the exit
Holds the pool that Senior shares trade against. Earns pool fees plus a liquidity premium, and carries impermanent loss.
Each tranche gets its own share token, and every claim is tracked at NAV. Senior shares have secondary liquidity from day one through the market's own pool. The steps ahead set the asset and its price feed, the coverage Junior provides, the risk and liquidity premiums paid out of Senior yield, and how deep exits run.