🔣5.6.1 Liquidity Providers – Supplying Capital

• Deposits and Minting: LPs deposit stablecoins into the Funding Pool smart contract. In exchange, the contract mints fTokens representing their proportional claim on the pool. This design mirrors the way DeFi protocols like Aave issue aTokens to depositors, which represent a pro‑rata share of the pool and accrue interest.

• Redemption and Tranche Vaults: LPs can redeem fTokens at any time (subject to pool conditions) to withdraw their principal plus earned yield. EOSI Finance offers Tranche Vaults so that LPs can select risk profiles: the Safe Vault prioritises capital preservation with conservative allocations; the Growth Vault pursues higher yields with more aggressive trader cohorts; and the Hybrid Vault blends both approaches. Diversification across multiple trader accounts reduces concentration risk.

• KYC Flexibility: By default, EOSI Finance’s vaults are permissionless and do not require KYC. This mirrors the seamless, non‑custodial nature of DeFi lending platforms, where users lend and borrow without identity checks. Optional whitelisted vaults can be introduced for institutional LPs who require regulatory compliance. Even in KYC‑enabled vaults, EOSI Finance does not custody user funds; third‑party providers handle verification and funds remain on‑chain.