Yield Tranching Mechanism

Nebula’s Yield Tranching Mechanism

Nebula’s yield tranching mechanism is tailored to accommodate a wide range of investor risk profiles. It divides lending pools into two distinct tranches:

1. Stable Tranche: Focuses on low-risk, consistent returns by primarily utilizing stablecoins, appealing to conservative investors.

2. Volatile Tranche: Offers higher potential yields by exposing capital to market fluctuations, suitable for investors with a higher risk tolerance.

This dynamic allocation of capital ensures that investors can select tranches aligned with their risk appetite. Additionally, the structure enhances capital efficiency and optimizes yield distribution by leveraging predictive financial models and real-time market conditions.