It is a partial definition. To use the repo facility, borrowers don't just stake their assets, they also promise to re-buy them hours later at a higher price. I

It is a partial definition. To use the repo facility, borrowers don't just stake their assets, they also promise to re-buy them hours later at a higher price. It is literally overnight money issued in exchange for high-quality assets. If somehow the borrower goes broke within a few minutes, the Fed is still holding their assets. Edit: I forgot about the haircut. The repo only lends out 98% of the staked assets value.