DeltaPrime is a trustless liquidity protocol operating on the Avalanche chain. Users can deposit their assets into liquidity pools, For which borrowers pay an interest rate. Borrowers of these pools can invest these funds through a multitude of DeFi protocols. While these investors run the risk of liquidation if they make bad investments, they can also reap bigger rewards by making good investments. The role of a borrower is one of more active portfolio management, where the depositor can hang back with one single investment. The more is borrowed, the higher depositors' rewards. Less risk/reward for the depositor means the protocol needs to be able to protect the funds of depositors, something that until now was only possible through inefficient overcollateralized loans.
What makes DeltaPrime's architecture unique is the ability to liquidate undercollateralized borrowed funds. DeltaPrime can do this by sending borrowed tokens to a freshly created, 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.
Of course, assets are only as valuable as the utility they have. For this reason DeltaPrime integrates a plethora of existing DeFi protocols. Check them out here. In the upcoming months the list will be expanded upon heavily. If there is any protocol that you think would be interesting to integrate, let us know. Until DeltaPrime is a DAO, the development team manages the integrations and for that we would love your input!
Architecture of DeltaPrime protocol