Architecture Overview
Core Components
Nomial V1 has three main components:
Smart Contracts: Contain logic that controls collateral and pooled capital
Validators: Off-chain clients that control all on-chain operations in the protocol
API: Off-chain service that facilitates interactions with the protocol
Smart Contracts
Core contracts:
CollateralPool
Accepts collateral deposits of any ERC20 token from solvers
Implements a time-locked withdrawal mechanism to allow time for liquidations
Allows Validators to liquidate solver balances if necessary
InventoryPool
Stores LP capital.
Borrowers (e.g., solvers) borrow from instances of InventoryPool
Each pool instance supports a single ERC20 token
Validators
Validators are responsible for triggering collateral liquidations and granting borrow permissions for inventory access. A quorum of Validators can:
Liquidate solver balances and pending withdrawals in the CollateralPool
Grant permission to borrow from InventoryPools (based on collateral and outstanding positions)
Update parameters such as withdrawal periods and interest rates
Learn more about validators: Security Model.
API
The API provides:
An endpoint for solvers to request validator approval for a borrow transaction
Transaction data for interactions with the smart contracts
Read-only state info about validators, borrowers, and pools.
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