RevvFi Protocol

A decentralized lending protocol enabling peer-to-peer loan matching with variable interest rates, collateralized borrowing, and reputation-based risk assessment on the blockchain.

Overview

RevvFi is a sophisticated decentralized lending protocol that facilitates peer-to-peer lending with dynamic interest rate discovery through competitive offer mechanisms. The protocol is designed to support multiple independent lending markets, each with its own borrower, collateral requirements, and lender communities.

Protocol Highlights

• Dynamic Market Creation: Borrowers can deploy custom lending markets with configurable collateral types and parameters
• Flexible Interest Rate Discovery: Lenders submit competitive offers with varying APRs, allowing automatic price discovery
• Collateral Management: Secure collateral escrow with oracle-based valuation and health monitoring
• Advanced Liquidation: Dutch auction-based liquidation mechanism for efficient collateral recovery
• Reputation Scoring: On-chain reputation system tracking borrower performance across all markets
• Position NFTs: Lender positions are represented as transferable ERC721 tokens
• Withdrawal Queue: Epoch-based withdrawal system preventing bank runs and ensuring orderly liquidity management
• Tiered Lending: Support for senior and junior lending positions with different risk/reward profiles

Key Features

1. Multi-Market Architecture

Each borrower controls an independent lending market where they can secure loans. Markets are isolated, allowing borrowers to manage reputation and collateral separately.

2. Competitive Offer Matching

Lenders submit offers with custom APRs and seniority levels. The protocol matches borrow requests with the most favorable offers, with senior offers prioritized.

3. Collateral Escrow & Health Monitoring

Collateral is held in a dedicated escrow contract with continuous health monitoring:

• Min Collateral Ratio: Minimum required collateral value vs. debt
• Liquidation Threshold: Ratio at which position becomes liquidatable
• Oracle Integration: Chainlink price feeds for real-time collateral valuation

4. Interest Accrual Engine

• Per-position APR tracking
• Automatic compound interest calculation
• Synchronized accrual across all active positions
• Real-time interest updates during borrowing and repayment

5. Dutch Auction Liquidation

When positions become undercollateralized, collateral is auctioned:

• Starting price: 100% of debt
• Decreasing price: Configurable step-based price reductions
• Reserve price: 80% of debt ensures minimum recovery
• Bid-time auction extension: Late bids extend auction window

6. Reputation & Risk Rating

Borrowers earn reputation scores (0-1000) based on:

• Starting Score: 500 for new borrowers
• Success Bonus: +1 point per successful loan repayment
• Default Penalty: -50 points per default
• Risk Labels: AAA (900+), AA (800-899), A (700-799), B (500-699), C (300-499), D (<300)

7. Position NFTs

Lender positions are ERC721 NFTs encoding principal amount, APR, seniority, and market association.

8. Liquidity Queue Management

Epoch-based withdrawal system with 7-day intervals to ensure orderly liquidity management and prevent bank runs.

License

This documentation is licensed under the MIT License. See individual sections for third-party library licenses.