♻️Auto-Rolling
Effortless and Efficient Reinvestment
Last updated
Effortless and Efficient Reinvestment
Last updated
In traditional finance, bond redemption at maturity requires manual reinvestment, which can be cumbersome. Secured Finance, however, has integrated an auto-roll feature into its protocol, streamlining the reinvestment process for users. This feature automatically reinvests matured loans into the nearest 3-month bucket, offering several key advantages:
Reinvestment risk, the possibility of not finding similar reinvestment conditions at maturity, is a common concern with fixed-term investments. The auto-roll feature mitigates this risk by rolling over positions to the nearest market at a close-to-mid price.
By eliminating the need to find another counterparty on the order book for reinvestment manually, the auto-roll feature reduces operational costs. This not only results in cost savings for users but also helps maintain the total value locked (TVL) in the protocol.
The auto-roll feature ensures a seamless reinvestment process, fostering continuous growth for users and enhancing the overall value proposition of the Secured Finance platform.
In essence, the auto-roll feature is designed to provide an easy, efficient, and smooth reinvestment experience, contributing to the overall user-friendliness of the Secured Finance platform.
