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Architecture

Vaultex is a single Soroban contract — a non-custodial money market — plus a Next.js dashboard that reads pool/position state and submits wallet-signed transactions. There is no off-chain server; the contract is the source of truth.

┌──────────────┐   wallet-signed tx     ┌──────────────────────────┐
│   Web (Next) │ ─────────────────────► │   lending-pool (Soroban) │
│  supply /    │ ◄──────  reads  ────────│  • LP shares             │
│  borrow /    │                         │  • borrower positions    │
│  repay UI    │                         │  • linear interest       │
│  Wallets Kit │                         │  • liquidation           │
└──────────────┘                         └──────────────────────────┘

Accounting

  • Lenders deposit the borrow asset and receive shares. Shares are minted proportionally: shares = amount × total_shares / total_deposited (1:1 on the first deposit). As borrowers pay interest, total_deposited grows while total_shares stays fixed, so each share redeems for more — that is the yield.
  • Borrowers post collateral and draw the borrow asset up to collateral × LTV. Each position tracks principal, accrued interest, and the last accrual timestamp.

Interest model

Interest is linear for MVP simplicity: on every state-changing call the borrower's position accrues principal × APR × Δt / year. Repaid interest is added back to the pool's total_deposited, distributing yield to all lenders pro rata via share appreciation. A utilization-curve (jump-rate) model is planned (see the roadmap / issues).

Pricing

The borrow and collateral assets are assumed to be valued 1:1 (a stablecoin pair), so no oracle is needed. Health and LTV are computed directly from token amounts. Non-stablecoin pairs require an oracle — tracked as an issue.

Liquidation

A position is liquidatable when debt > collateral × liquidation_threshold. A liquidator repays up to the debt and seizes repaid × (1 + bonus) of collateral (capped at the position's collateral).

Trust model

  • No custodial admin: there is no function that lets any account take user funds.
  • Every mutating call requires the relevant party's require_auth().
  • State and arithmetic are guarded; the release profile enables overflow-checks.
  • Persistent entries (positions, shares) are TTL-bumped on access.