We were simply just looking at cashflow. It’s pretty basic:
aUST funds area already comingled, i.e. auto-compounded and lent back out to borrowers with a utilization ratio that is way above what is actually lent meaning there is plenty of cash-flow barring a major bank run. This is how Aave, compound, and many other lending platforms work.
This model is really not any different from the current model where loan holders don’t pay the interest until the end of the loan as well. The only difference is the staking return cash flow which will not be significant enough to dry up cash-flow.