4）Synthetic Settlement

When the target asset is similar to other collateral synthetic assets, Mor can use its token issuance mechanism for settlement.

For example, when Mortonn, backed by BNB, expires, the protocol can transfer its BNB collateral to the vault. When Mortonn holders redeem their Mortonn, the protocol can lend out stablecoins and pay the holders. When borrowers repay, the protocol will repay any outstanding debts and return the collateral to the borrower. Alternatively, borrowers can transfer their collateral and debts to their vaults.

At Mor's expiration, the protocol needs to charge borrowers a floating interest rate to maintain their debt status, and if stablecoins must be borrowed, fees need to be paid. Conversely, the protocol may begin to pay additional income to Mor holders at a floating interest rate.

Therefore, another way to view this settlement mechanism is that users' fixed-rate token positions are "rolled" into floating-rate debt at maturity.