Interest Reserves

Through interest reserves, the interest payments generated from Prestio’s loans are secured entirely in advance upon approval of loan issuance. The interest amount for the full loan period is withheld from the loan principal and placed into interest reserve smart contracts. Interest reserves are smart contracts that securely hold interest payments in advance of their accrual then release those funds to lenders as the loan period progresses. Further, by securing the interest reserves up-front, they can be deployed into stable coin yield farming pools to generate compound interest on interest for Prestio lenders, placement of interest reserve require a DAO voting process.