Protocol Design

Imagine ETH is trading at $2000 on the open market:

  1. An ERC20 seller offers ETH to MortgageFi at $2020

  2. MortgageFi purchases this ETH using stablecoins from Earn depositors

  3. A borrower, seeing this as attractive, takes a loan for this ETH

  4. The borrower's repayments go to Earn depositors, who supplied the initial stablecoins

  5. If ETH price rises, more borrowers are attracted; if it falls, more sellers are incentivized

  6. The 3-day streaming mechanism ensures that large deposits or sales don't disrupt this balance

By creating this virtuous cycle with built-in security measures, MortgageFi maintains a stable, efficient, and oracle-free ecosystem that benefits all participants while remaining resilient to market fluctuations and potential exploits.

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