LPs can convert to the actual shares using the process described earlier. They can then either continue to hold the shares or sell them if possible.
In case of shares or liquid assets as underlying collateral the sale is straightforward, individual shareholders can trigger the sale of their shares and take the proceeds. In case of illiquid assets like real estate, the shareholders can do a vote via an Aragon DAO and instruct the Custodian to effect a sale and distribute the proceeds via stable coins to the DAO holders at which point the SPV would be liquidated.
In this way, Incentivized LPs are the mechanism to create on-chain liquidity for off-chain assets. Once the stable coin is minted, incentivized liquidity pools will also be established against other stable coins such as USDT/C.