Pension Fund Scenarios

$20.00

Asset Redemption

💵 USD

Initial Assets:$100.00
Initial Liabilities:$150.00
Initial Funding Ratio:66.67%
Amount to Sell (with 10% loss):$22.22
Payment to Retirees:$20.00
Final Assets:$77.78
Final Liabilities:$130.00
Final Funding Ratio:59.83%
Yield:$0.00

🪙 Stablecoin

Initial Assets:$100.00
Initial Liabilities:$150.00
Initial Funding Ratio:66.67%
Direct Transfer Amount:$20.00
Payment to Retirees:$20.00
Final Assets:$80.00
Final Liabilities:$130.00
Final Funding Ratio:61.54%
Yield on Remaining Assets:âš¡ $1.60

Borrowing

💵 USD

Initial Assets:$100.00
Initial Liabilities:$150.00
Initial Funding Ratio:66.67%
Borrowed Amount:$20.00
Payment to Retirees:$20.00
Final Assets:$100.00
Final Liabilities:$150.00
Final Funding Ratio:66.67%
Borrowing Cost (3%):-$0.60

🪙 Stablecoin

Initial Assets:$100.00
Initial Liabilities:$150.00
Initial Funding Ratio:66.67%
Borrowed Amount:$20.00
Payment to Retirees:$20.00
Final Assets:$100.00
Final Liabilities:$150.00
Final Funding Ratio:66.67%
Net Yield (2%):âš¡ $0.40

Key Differences:

  • USD Sale: Assets decrease due to selling at a loss, no yield
  • Stablecoin Transfer: No asset sale needed, direct 1:1 transfer to retirees
  • USD Borrowing: Assets preserved but incurs borrowing costs
  • Stablecoin Borrowing: Assets preserved and generates net yield