C. 54 Mor Portfolio

One drawback of fixed Mor compared to other on-chain lending target assets is that they are not permanent. To maintain a specific position indefinitely, borrowers or traders dealing with loans must periodically roll over the position, selling expired BondMor and purchasing longer-term Mor.

As many users may be interested in such a strategy, especially for loans, they may be able to pool their assets together and execute on-chain. A full description of such a system is beyond the scope of this article, but it could be implemented as a set token [14] or balancer pool [13] that maintains a rebalancing basket of financial Mor. Some strategies a portfolio might use include:

● Holding only fixed tokens maturing at the end of the current quarter and rolling them over on the maturity date.

● Targeting a specific term (average time to maturity) and periodically rebalancing its portfolio, changing the weight of each asset to maintain that term.

● Seeking the highest yielding term without regard to the term itself.

These approaches have the beneficial side effect of providing liquidity for these BondMor.