MechanicsOverview

Mechanics Overview

This section details the operational flows of the RevvFi lending protocol, from market creation to debt settlement.

The Protocol Lifecycle

Developing and participating in a RevvFi market involves four distinct phases.

Phase 1: Market Creation

  • Action: A borrower (individual or DAO) deploys an independent LendingMarket.
  • Parameters: Borrower configures accepted collateral (e.g., WBTC, ETH), Loan-to-Value (LTV) ratios, and liquidation thresholds.
  • Cost: A small platform fee is paid to the RevvFiLendingEngine.

Phase 2: Liquidity Accumulation (Offer Phase)

  • Action: Lenders browse active markets and submit Offers.
  • Flexibility: Lenders specify their own risk appetite by choosing Seniority and a target APR range.
  • Security: Funds remain in the LendingMarket contract but are not yet earning interest until matched.

Phase 3: Borrowing & Matching

  • Action: The borrower initiates a requestLoan().
  • Success: The Matching Engine automatically pairs the request with the most competitive (lowest APR) offers available.
  • Accrual: Interest begins accruing on a per-second basis from the moment of match.

Phase 4: Servicing & Repayment

  • Action: Borrowers repay principal plus accrued interest through the market contract.
  • Distribution: Funds are automatically routed back to the participating lenders.
  • Reputation: Upon settlement, the borrower’s global Reputation Score increases.

Technical Guides

Explore the core mechanisms in detail:

DecisionsMatching Engine