Protocol Overview

Architecture
The diagram below describes the high level architecture of Voltz Protocol:
Voltz Protocol Architecture
At the heart of the Voltz Protocol is the Factory that is responsible for the deployment of Interest Rate Swap (IRS) pools. 
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.
Each (IRS) pool is made up of three key components (contracts): Margin Engine, Virtual Automated Market Maker (vAMM) and Full Collateralization Module (FCM):
​Margin Engine: is responsible for the management of position margin, cashflows and liquidations.
​vAMM: is responsible for price discovery for the initiation of interest rate swaps.
​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.
​Periphery is a wrapper smart contract through which Voltz Protocol users can seamlessly add liquidity, remove liquidity, enter into an IRS contract or update position margin.
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.
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