ABRL: Our stablecoin

ABRL is the stablecoin developed to enable loans through the AmFi platform.

Why did we decide to develop our own stablecoin?

Because our platform is based on the blockchain, we cannot simply use fiat currencies to run transactions. The best alternative for this are stablecoins.

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 the Brazilian Real (see below).

ABRL is used on the AmFi platform for all transactions involving 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 a simple and reliable way.

How to buy ABRL

To buy ABRL, the KYC-verified user only needs to transfer fiat to the stablecoin bank account via TED. Once the transfer is complete, the same amount will be minted into ABRL and stored in the smart contract responsible for the on-ramp process. This amount is then available for the investor to claim on the platform.

Once claimed, the amount is available to the investor and can be used for investment or be withdrawn back into the banking system.

The originator and investors allocate ABRL to the Junior/Senior Tranche of the Pool.

Use of ABRL in loans

When a loan is approved, the Pool’s ABRLs are transferred to the stablecoin bank account and then converted back to Reais, which are transferred to the bank account of the SPV, the legal entity representing the pool. Finally, the borrower receives the requested loan amount in Reais to their bank account.

When a loan is repaid by the borrower, the reverse process occurs and ABRL is minted again, going back into the Pool.

ABRL peg

ABRL is a fiat-backed stablecoin. This means that each ABRL minted has a corresponding Brazilian Real in the stablecoin bank account. This Real is kept in the bank and is not used for any other purpose.

Only KYC’d users can buy or withdraw ABRL exclusively through the AmFi platform, and currently AmFi does not provide liquidity for the use of the stablecoin outside the platform.