Hatom Lending Protocol is a decentralized lending protocol, built on the MultiversX Blockchain. It is a complete Money Market ecosystem that allows users to lend, borrow and stake their crypto assets at competitive interest rates. Hatom is one of the most exciting projects in the DeFi space right now. Depositors earn a passive income by providing liquidity to the market, while borrowers can borrow in an over-collateralized manner. Hatom was created to make lending on the highly sought-after MultiversX Blockchain accessible.
This repository contains the source code for the Hatom Lending Protocol. The protocol is built on top of the MultiversX blockchain and utilizes smart contracts to automate all processes. The smart contracts are written and tested in Rust.
To compile the project, make sure you have installed Rust. After downloading the repository and checking out the intended branch, you can build the project by simply running:
$ cargo buildThe lending protocol is composed of a series of smart contracts, namely:
- Money market: solves the money market equations that allow tracking the interest being accrued by lenders and borrowers.
- Controller: verifies if a user interaction with the protocol can or cannot be executed.
- Interest Rate Model: computes the borrow and supply interest rates based on a mathematical model.
- Oracle: in charge of providing accurate asset prices in a given numeraire.
Their connections can be better illustrated by the following simple diagram:
graph TD;
MoneyMarket(Money Markets) --> Controller
Controller --> MoneyMarket
MoneyMarket --> InterestRateModel(Interest Rate Models)
Controller(Controller) --> Oracle
Oracle(Oracle)
There is one Money Market per asset or underlying, such as EGLD, SEGLD, USDC, etc. Each money market is associated to
an Interest Rate Model. All Money Markets are related through the Controller. The Controller is able to translate amounts
into the same numeraire via the Oracle.
Lenders or suppliers interact with the protocol by providing underlying to any Money Market in order to get yield coming
from the interest paid by borrowers. The action of depositing underlying to a Money Market is commonly known as minting
given that it implies the mint of an interest bearing token known as the H-Token. There is one H-Token per money market,
such as HEGLD, HSEGLD, HUSDC, etc. The H-Tokens can be thought as representing shares on the pool. Users can redeem
their interest-bearing tokens at any time for the underlying and accrued interest.
A lender might become a borrower by providing H-Tokens as collateral (i.e. depositing them in the Controller) and later borrowing underlying from any Money Market.
Finally, liquidators are agents that are constantly monitoring borrowers positions to identify if they become risky. When an account becomes risky, it becomes eligible to be liquidated. A liquidation consists on the liquidator repaying a portion of the borrower's borrow and getting borrower's collateral at a discount.
The Hatom Lending Protocol has been extensively audited before its launch. Multiple firms and parties have looked and analyzed the code, including:
- Various Hatom Core Developers
- MultiversX
- Runtime Verification
- Certik
- Hacken
- Halborn
- Arda
- ABDK
- Peckshield
The main interactions that users can perform with the protocol are:
Money Market Operations:
- mint: Supply underlying assets to a Money Market and receive H-Tokens in exchange (e.g., supply USDC and receive HUSDC).
- redeem: Convert H-Tokens back to underlying assets plus accrued interest.
- borrow: Borrow underlying assets from a Money Market using H-Tokens as collateral.
- repayBorrow: Repay borrowed amounts to reduce debt.
- liquidate: Liquidate undercollateralized positions by repaying borrower's debt in exchange for collateral at a discount.
Controller Operations:
- enterMarkets: Enable H-Tokens as collateral for borrowing.
- exitMarket: Disable H-Tokens as collateral (if allowed by risk parameters).
Oracle Operations:
- updatePrices: Update asset price feeds (typically performed by authorized price feeders).
All interactions with the protocol are performed through smart contract calls using the MultiversX blockchain infrastructure.