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Voltz Protocol Overview
The diagram below describes the high level architecture of Voltz Protocol:
Voltz Protocol Architecture
- Each (IRS) pool works on top of a yield-bearing pool that produces variable rates of return (e.g. Aave v2 aUSDC lending pool).
- Each IRS pool has an inception date and a maturity date at which the swaps are settled.
- Full Collateralization Module (FCM): enables traders to enter into fully collateralized fixed taker positions by depositing margin in the form of the yield-bearing asset (e.g. aUSDC) instead of the underlying token (e.g. USDC)
- Since rate data is necessary for IRS settlements and calculations of position margin requirements, the system has a single contract to store and expose the rate history for any given yield bearing token. Such a contract is a fully on-chain Rate Oracle.
- Positions with insufficient amount of underlying tokens below the liquidation threshold in their margin account are at risk of being liquidated by a pool of liquidator bots.