Example

LPs provide 100USDC in aggregate. Managers allocate 10USDC, 20USDC, and 20USDC from the vault to each attached instrument. This capital is put to work and some portion is insured by the managers.

The rest 50USDC is allocated to a low-risk and liquid yield source(i.e compound) in DeFi, such that when a new instrument is approved and attached the capital can be easily withdrawn and allocated to the new instrument.

These lending pools can either be RAMMLend's in-house written isolated lending pools, or they can be a smart contract that supplies to any high-risk lending protocol in the DeFi ecosystem(i.e NFT lending protocols). This allows vault investors to be exposed to external capital demand sources, as well as enjoy passive yields from otherwise yield sources that need active management(i.e P2P lending).