2.4 Loan Flow

1. Pool Access

Borrower selects a TrustBridge pool via the frontend.

2. Collateral Submission

Borrower deposits XLM to meet collateral ratio. Verified via oracle.

3. Loan Disbursement

If conditions are met, Blend sends USDC directly to borrower.

4. Interest Accrual

Lenders start earning interest immediately. Rates depend on demand and utilization.

5. Repayment

Borrower repays loan (principal + interest). Collateral is released and TRBT score updated.

6. Default

If borrower fails:

• Collateral is liquidated

• Backstop covers remaining shortfall

• Risk level is updated