vProtocol Docs
  • Introduction
    • Welcome To vProtocol
    • Protocol Overview
    • Key Features and Benefits
    • Use Case
    • Ecosystem Partners
  • USER GUIDE
    • For Lenders
      • Supply Assets
    • For Borrower
      • Depositing Collateral
      • Borrowing From The Lending Pool
    • For Trader & Developers
      • Using FlashLoans
      • Example Implementation
  • Protocol Architecture
    • Diamond Standard Implementation
    • Core Component
    • Smart Contract Structure
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On this page
  • 1. Lending Pool
  • 2. P2P Matching Engine
  • 3. Auto-Rebalancing Module
  • 4. Yield Optimization Layer
  • 5. Oracle Integration
  1. Protocol Architecture

Core Component

vProtocol consists of five primary functional components, each implemented as one or more facets in the Diamond architecture:

1. Lending Pool

Manages the conventional pool-based lending system:

  • Deposit/withdraw functionality

  • Borrowing operations

  • Interest rate models

  • Utilization-based pricing

  • Liquidation triggers

2. P2P Matching Engine

Facilitates direct peer-to-peer lending:

  • Order book management

  • Loan matching algorithm

  • Customizable terms

  • Collateral handling

3. Auto-Rebalancing Module

Optimizes capital efficiency across lending methods:

  • Utilization monitoring

  • Yield comparison

  • Capital reallocation

  • Risk-adjusted decision making

  • Threshold-based triggers

4. Yield Optimization Layer

Maximizes returns for protocol participants:

  • Reward distribution

  • Staking mechanism

  • Loyalty multipliers

  • Auto-compounding

  • Performance tracking

5. Oracle Integration

Provides secure price data:

  • Chainlink price feeds

  • Time-weighted averages

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