What goes underneath the hood?
Asgard Prime Brokerage is a two sided protocol:
Lenders:
Who seek passive yield and prefer lower risks.
This can be seen similar to providing liquidity to Kamino/Marginfi.
Lenders' assets are utilized by borrowers, for which they get lending APY.
Borrowers:
Who wish to increase capital efficiency by depositing collateral and borrowing liquidity from the protocol at multiples of their collateral.
The liquidity they borrow can be 10x of their collateral.
Protocol Core Architecture
Similar to Credit Synthesizer, at the core of Asgard's Prime Brokerage is Credit Accounts. Here they change in their implementation as they “bind” together lenders and borrowers in one equation.
Credit Accounts
A credit account is an isolated program (smart contract in EVM terms) that:
holds borrower's collateral + credit drawn by borrower,
has liquidation thresholds
and has a list of allowed list of tokens and protocols that it can execute txs on.
Allowed List policy
Operations available to users are restricted by two policies:
Allowed contracts list: borrowers can interact through Credit Accounts only with contracts from this list to mitigate risks that funds will be sent to vulnerable smart contracts.
Allowed tokens list:
this allows managing risks of swapping funds to highly-volatile assets whose price could drastically fall after a swap and before a liquidation would take place.
another attack vector is a user creating some dummy SPL-20 token, buy it on Raydium and draining capital from the protocol.
Both policies will be managed by the team initially to grow token and defi protocol support and then rolled over to the Asgard's Governance.
Modular Architecture
Given Asgard's vision to create a generalized Credit Layer in Solana Defi, the protocol is designed to be modular to increase the scale at which we can support different segementation of risks, new tokens/defi protocols/strategies.
Apart from AsgardDAO curating the main lending pool, we can have different Risk Curators managing different pools like:
KYC pools which can be run by an Institutional broker
Risk on pools to provide credit on riskier farms and long tail assets.
P2P pool where each lender curates risks.
Last updated