System Components Overview

       

The Chiss Protocol architecture is designed to seamlessly integrate multiple components, each with a specific role in ensuring the efficient functioning of the platform. The following are the key components of the system:

1. Loan Manager:

   The Loan Manager is responsible for managing the overcollateralized loan positions taken by users. This component ensures that all loans are properly collateralized and enforces the collateralization ratio requirements. It also handles the creation and closure of loan positions.

2. Borrower Operations:

   Borrower Operations handles user interactions related to borrowing and repayment of stablecoins. This component manages the user interface with the protocol and ensures that users can easily interact with the system to open or close loan positions, repay loans, or access their collateral.

3. Stability Pool:

   The Stability Pool plays a critical role in maintaining the stability of the system. It holds funds that are used to cover under-collateralized positions, ensuring that the protocol remains solvent. Users can contribute to the Stability Pool in exchange for yield, typically earned in the form of USDT or other supported tokens.

4. Price Manager:

   The Price Manager component is responsible for managing the price feeds that are critical for determining collateral value, borrowing capacity, and liquidation conditions. This component integrates with oracles to provide real-time price data for supported assets, such as USD-backed stablecoins, NGN, and TLY.

5. Debt Token Module:

   The Debt Token Module is responsible for minting and managing debt tokens that represent the stablecoins borrowed by users. These debt tokens are issued to users when they borrow localized stablecoins and serve as a representation of the debt owed by the borrower to the protocol.

6. Facilitators:

   Facilitators are key partners who work with Chiss Protocol to bridge the gap between the on-chain stablecoins and real-world fiat currencies. Facilitators help users redeem their borrowed stablecoins for actual fiat, enabling easy conversion of assets for real-world use.

7. Flashloan Mechanism:

   The Flashloan Mechanism is an integrated component that allows users to perform cross-pool swaps and arbitrage. This feature is designed to facilitate rapid and cost-effective liquidity transfers across different pools, allowing users to take advantage of market opportunities with minimal fees.

8. Stabilization Algorithm:

   The Stabilization Algorithm is a core part of Chiss Protocol, ensuring that liquidity pools remain balanced and that localized stablecoins maintain their peg. This algorithm manages the flow of assets between different pools, adjusting supply and demand dynamically to maintain stability and liquidity across the protocol.

These components work together to create a cohesive and efficient system that empowers users to leverage their crypto assets for borrowing localized stablecoins, performing cross-pool swaps, and accessing liquidity in a transparent and decentralized manner. The architecture is designed to prioritize user experience, stability, and security while providing innovative financial tools that cater to the needs of it users