Lenders’ Perspective

Lenders—who hold ABST—gain access to a structured, yield-generating asset class that mitigates volatility while providing attractive, risk-adjusted returns. Unlike traditional DeFi markets exposed to high collateralization requirements and unpredictable market swings, Tulpea offers lenders access to real estate-backed, stable income streams with institutional-grade structuring.

Key Advantages for Lenders

• Real Estate-Backed Yield: Returns are secured through tangible assets and rental income, ensuring consistent yield generation.

• Stable, Predictable Cash Flows: ABS maturity structures provide fixed-income characteristics, allowing lenders to receive steady interest payments over the loan term, independently of crypto market fluctuations.

• Customizable Risk-Adjusted Tranching: Lenders can tailor their exposure based on waterfall structures, where junior tranches absorb losses first, ensuring that senior investors are protected.

• Variable Market-Adjusted Yield: $TULIP incentives allow lenders to capture ecosystem growth, aligning their long-term interests with those of Tulpea DAO.

• Secondary Market Liquidity: Tokenized ABD can be traded on secondary market or DeFi platforms, providing an exit mechanism for lenders before ABD maturity.

• Democratized Access to Institutional-Grade Products: Traditionally, ABD investments were reserved for institutional players. Tulpea enables equal access for both institutional and retail investors, opening up a previously inaccessible financial product to a broader market.

Risk Mitigation for Lenders

While real ABDT offer structured security, Tulpea integrates multiple risk mitigation layers to further protect lenders:

• Default Risk Protection:

  • Lenders do not bear the direct risk of borrower selection. Instead, they lend to Tulpea DAO, which acts as the trusted intermediary responsible for project viability, property management, and financial structuring.

  • By removing direct borrower risk, lenders can invest in real estate without evaluating individual creditworthiness, income stability, or borrower reliability.

  • In case of major default, vested REBT held by borrowers can be mobilized by the DAO to compensate lenders, ensuring system stability.

  • The DAO has a vested interest in maintaining lender confidence—protecting lenders is essential to Tulpea’s credibility and long-term viability.

  • This mechanism functions as an economic alignment model, where Tulpea DAO's long-term financial health is directly tied to lender confidence. By ensuring that lender capital is protected, the DAO maintains its credibility, sustains ABDT demand, and preserves the value of its ecosystem, including $TULIP. This creates a self-reinforcing loop where lender security translates into continued DAO growth and financial sustainability.

• Minor Default Contingency:

  • Reserve funds, collected from borrower fees and operational fees, are allocated to cover minor defaults or temporary liquidity gaps related to property management.

  • This ensures that temporary payment disruptions do not impact lender returns, reinforcing the resilience of the lending system.

• Asset Selection:

  • The asset validation process is fully transparent, leveraging the expertise of Tulpea, Curators and Analysts to ensure only high-quality investments are financed.

  • Each asset must strictly align with the investment thesis, which is designed to optimize risk-adjusted returns while maintaining capital efficiency.

  • A rigorous financial analysis further mitigates risk, incorporating:

    • Debt Service Coverage Ratio (DSCR) > 1.2, ensuring the asset generates sufficient income to cover debt obligations.

    • Comprehensive Net Operating Income (NOI) assessment, integrating all relevant variables that may impact yield and long-term performance

By integrating institutional-grade risk management, structured repayment mechanisms, and DAO-aligned security, Tulpea offers lenders a stable, liquid, and risk-optimized financial instrument.