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Roles in the Ecosystem ​

Debt pools within the Textile Protocol are built around three core participants:

Borrower ​

The borrower is an individual or entity seeking capital. They initiate the process by opening a debt pool, defining the borrowing terms, and providing any required collateral.

Responsibilities ​

  • Define pool parameters (interest rate, pool size, redemption period, etc.)
  • Make regular interest payments according to the agreed schedule
  • Manage borrowed capital responsibly
  • Provide collateral as required

Capital Providers / Lenders ​

Capital providers supply liquidity to the protocol in order to earn returns. They can participate in two ways:

  1. Direct Participation – By directly depositing liquidity into a debt pool
  2. Secondary Market – By purchasing Debt Tokens on the secondary market, which represent claims on repayment plus yield

Benefits ​

  • Earn interest on deposited capital
  • Choose between compounding interest or regular payouts
  • Trade debt tokens on secondary markets
  • Diversify across multiple pools

Deal Managers ​

A deal manager is an individual or entity that facilitates the connection between borrowers and lenders, earning fees for managing and validating transactions. Deal managers ensure that each deal is credible, transparent, and aligned with the protocol's standards.

Fee Structure ​

Deal managers typically charge the pool through:

  • Deposit Fee – For onboarding and structuring the deal
  • Success Fee – Contingent on the deal being successfully executed

Responsibilities ​

The role of a deal manager includes:

  • Verification – Verification of the deal's risk-reward profile
  • Legal Assessment – Assessment of legal frameworks and collateral requirements
  • Compliance Validation – Validation of compliance and credibility, acting as a co-signer to the deal's legitimacy

By doing this, deal managers provide trust and accountability to both borrowers and lenders, ensuring that capital flows into well-vetted opportunities.

Value Proposition ​

Deal managers bridge the gap between traditional underwriting and decentralized finance, bringing professional due diligence to the protocol while maintaining transparency and decentralization.