Pool Lifecycle

Wagon Network follows a clear, structured process to manage investor funds. Each lending pool moves through four key phases—from raising capital to asset maturity—ensuring full transparency, traceability, and protection via smart contracts.

The full lifecycle of a lending pool — from deposit to asset leasing and investor exit.

🟢 Open Phase

Open Lending In this initial stage, investors deposit funds into the lending pool:

• 🧑 Investor Deposit – Users deposit stablecoin into the pool smart contract

• 🧾 Pool Fills Up – Pool remains open until the target is reached

• 🔒 Pool Locked – Once full, the pool is locked and transitions to the next phase

Tokenization After the pool is locked, funds are used to prepare the underlying asset:

• 🏢 Form SPV – A special purpose vehicle (SPV) is created

• 🚛 Purchase Truck – The asset (e.g. a truck) is purchased

• 🛡️ Insured Asset – Asset is insured to minimize risk

• 📄 Leasing Agreement – A lease agreement is signed with the borrower

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🟠 Active Phase

Active Operation The asset enters operation and begins generating yield:

• 🔧 Truck Operates – The asset is used by a verified MSME borrower

• 📊 Data Collected – Usage and performance data is recorded

• 💸 Rent Payment – Monthly lease payments are collected

• 💰 Yield Distributed – Returns are distributed to investors monthly

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🔴 Matured Phase

Mature & Exit At the end of the lease term, the pool reaches maturity:

• ⏳ Lease Ends – The lease agreement concludes

• 💵 Principal Returned – Full investor principal is returned

• 🔥 Token Burned – Pool tokens are burned, closing the lifecycle