System Architecture

Looper Architecture

When users open a Looper position, the system first assigns a new position ID and deploys a dedicated wallet instance to custody assets. Subsequently, the system creates a loan in the CBR contract based on position configuration, with user collateral deposited and borrowed SLB transferred to the SLF contract through authorization to generate corresponding liquidity positions. Meanwhile, the contract transfers both collateralized tokens and borrowed liquidity to the wallet instance, which calls the LoopHelper contract for initialization, implementing the "borrow—invest—borrow again" cyclic leverage logic. After completing all checks and confirming position safety ratios, the system binds the position to the user.

YT Architecture

When users open a YT position, the system first assigns a new position ID and deploys a dedicated wallet instance to custody assets. Based on configuration parameters, it calculates the borrowing capacity supported by the collateral, then initiates a loan through the CBR contract, exchanging collateralized tokens for corresponding amounts of SLB. The contract then converts these borrowed SLB into usable liquidity and creates a fixed-rate borrowing position (aka static price-locked position) in SLF, determining future interest payment methods. Finally, the wallet calls a preset strategy helper contract to complete initialization logic, putting the position into operational status. The end result is that users successfully open a YT position linked to yields, managed and executed by an independent wallet instance.

SLF Deposit Architecture

When users choose to deposit assets into SLF, they are essentially providing funds to liquidity pools. Users transfer liquidity tokens to the SLF contract, which checks whether the pool's capacity limit has reached its maximum, then generates a price-locked record for users to track their deposit principal and corresponding interest accumulation. Simultaneously, SLF updates the liquidity pool's dynamic interest index based on current interest rate parameters and includes the user's deposit amount in the pool's utilized capacity. Over time, SLF continuously calls interest rate provider contracts to refresh rate indices and distributes newly earned interest to each depositor's record. Ultimately, user deposits both provide the liquidity needed for pool lending and generate continuous interest income for themselves.

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Key Features

Diversified Yield Strategies: Users can access multiple yield optimization approaches - YT strategies for leveraged yield exposure with fixed costs, or Looper strategies for ongoing leveraged positions, allowing different risk and return profiles to match individual preferences.

Secure Lending and Liquidity System: The CBR and SLF modules work together to manage all lending activities with strict safety ratios and risk controls, while simultaneously allowing users to earn continuous returns by providing liquidity that powers the entire ecosystem's borrowing and leverage strategies.

Asset Independence and Transparency: Each position generates an independent wallet instance with asset isolation and transparent strategies, allowing users to clearly track fund flows and yield situations.

Dynamic Risk Management and Optimization: The system continuously adjusts interest rates, monitors capital utilization across all strategies, and dynamically rebalances allocation between assets and strategies to maximize risk-adjusted returns while maintaining position safety through real-time risk controls.

Scalable Architecture: Bondify's modular design enables rapid integration of new strategies, asset types, and interest rate models, maintaining long-term innovation capacity and market adaptability.

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Operational Flow

Creating Positions

1. Deploy Position Wallet (Wallet Instance)

• Deploy a lightweight wallet contract specifically for this position to custody collateral and borrowed assets

2. Create Position in CBR

• Collateralize RWA assets

• Borrow SLB

• Create position and save CBR position ID in position information

3. Register Interest Lending Position in SLF

• For Looper: Call dynamic interest borrowing interface

• For YT: Call fixed interest borrowing interface (static price-locked position)

• System calculates actual borrowable USDC based on SLB quantity

• Create SLF position and save SLF position ID in position information

4. Transfer Assets to Wallet Instance

• User's RWA assets transfer to wallet

• Borrowed USDC (converted in SLF) transfers to wallet

5. Call Helper to Convert USDC Liquidity to RWA Assets

• LoopHelper (for Looper) or YTHelper (for YT) executes the conversion logic

6. Risk Control Check

• Verify position meets safety requirements and leverage ratios

7. Position Recording

• Record position in user's portfolio