ABRL
ABRL is the stablecoin developed to enable loans through the AmFi platform.
Stablecoins are cryptocurrencies designed to maintain price stability relative to other assets, often fiat currencies. For example, each stablecoin paired with a dollar is worth one dollar. They are used to minimize the volatility of crypto assets prices while maintaining the security, speed, and other benefits of transactions on blockchains.
Since there was no stablecoin pegged to the Brazilian real that was solid and transparent enough for our standards, we developed ABRL, which is pegged 1:1 to the Brazilian Real. ABRL is also fully backed 1:1 by Brazilian Real (see below).
ABRL is used on the AmFi platform in all transactions that involve a liquidity transfer: loans, investments, and fee collection.
It also allows platform participants who have passed a KYC check to move their capital between the banking system and the blockchain (on-ramp/off-ramp) in an simple and reliable way.
To purchase ABRL, the KYC'd investor only needs to transfer fiat to the stablecoin bank account via TED. Once the transfer has completed, the same amount in ABRL is minted and stored in the smart contract responsible for on-ramp. This amount becomes available for that investor to claim on the platform.
Once claimed, it becomes available to the investor and can me used to operate investments or withdrawn back to the banking system.
Simplified explanation of how the real/ABRL flow works in the pools
The agent and investors allocate ABRL to the Junior/Senior Tranche of the Pool.
When a loan is approved, the Pool’s ABRLs are transferred to the stablecoin bank account and then converted back to reais, which are sent to the bank account of the SPV, the legal entity representing the pool. Finally, the borrower receives the requested loan amount in Reais in their bank account.
When a loan is repaid by the borrower, the inverse process happens and ABRL is minted again, going back into the Pool.
ABRL is Fiat-backed stablecoin. That is, each ABRL that is minted has a corresponding Brazilian Real in the stablecoin bank account. That Real is kept in the bank and is not used for any other purpose.
Only KYC’d users can buy or withdraw it exclusively through the AmFi platform, and currently AmFi does not provide liquidity for using the stablecoin outside the platform.
Last modified 3mo ago