Overview

DeltaPrime is a trustless borrowing platform on Avalanche and Arbitrum. Depositors can lend out funds by depositing an asset into one of the liquidity pools (eg. $AVAX or $ARB). Borrowers can then borrow these assets for which they pay interest. The interest rate is dependent on supply and demand of that asset.

Borrowers of these pools can invest borrowed funds, together with their full collateral, in a multitude of DeFi protocols. While borrowers can be liquidated if they lose too much value, they can also reap bigger rewards by making good investments. Depending on the strategy borrowers set up, they design their own Risk/Reward.

What makes DeltaPrime's architecture unique is the ability to liquidate funds, independent of the protocol they are in at that time. Borrowed assets are sent to a personal, dedicated smart contract, instead of a personal wallet. See it as an escrow smart contract. While the borrower is solely in charge of this smart contract, it allows the protocol to protect the funds through liquidation if necessary.

This method is very similar to a margin account.

But here, you can use all funds in the account, cross-margin, across a range of DeFi protocols.

Architecture of DeltaPrime protocol