Architecture

HyperLend's design centers around a lending pool where users can deposit and borrow cryptocurrency. The platform employs an algorithm to set interest rates based on supply and demand, ensuring competitive rates. It also offers flash loans, allowing users to borrow funds without collateral for short-term needs. Security is a top priority, with all smart contracts audited by third parties to protect user funds.

Core Components

• Core Pools

Core Pools are the lending pools that allow the supplying or borrowing of multiple tokens in a single pool. This increases the capital efficiency, but also the risk, since if one of the assets in the pool fails (e.g. market manipulation, infinite mint exploits...), the entire pool is at risk.

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• E-mode (Efficiency Mode):

E-mode allows users to borrow with higher LTV when both the collateral and borrowed assets are from the same correlated category, such as stablecoins or staking derivatives. It increases capital efficiency while keeping risk isolated. When enabled, borrowing and supplying are restricted to assets within that category.

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• Isolated Pools

Isolated Pools isolate the risk since each market only consists of 2 tokens, one that can be used as collateral and one that can be borrowed.