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