⚫Introduction

Perlin Finance Overview

Perlin Fiinance is an innovative money market system anchored by Neo Blockchain, designed to increase pool size with algorithmic interest rates, driven by the supply and demand. Within the Perlin Finance, there exist two primary roles: suppliers and borrowers. The participants engage directly with the protocol to either earn or repay at the dynamic interest rate.

Each money market on Perlin represents a distinct crosschain asset, whether it's ERC20 FRAX or any other NEP17-compliant token. This setup ensures an open, transparent, crosschain ledger.

Supplier In traditional peer-to-peer platforms where loans are matched directly, a user's asset is specifically lent to another party. In stark contrast, Perlin aggregates assets from all suppliers, boosting liquidity and ensuring optimal financial equilibrium. This approach allows suppliers the freedom to withdraw their assets instantly without any obligatory wait period linked to loan maturity. Consequently, Perlin exhibits far superior liquidity than its traditional P2P contemporaries. The assets supplied are symbolized as pToken.

Borrowing For users tp borrow an asset on Perlin, they must initially deposit to receive pTokens as collateral. After the deposit, they can borrow any asset listed on the market. Unlike conventional P2P platforms, Perlin simplifies borrowing by only requiring users to specify the desired asset, with no additional caveats such as maturity dates. Borrowing is instantaneous, with interest rates dynamically adjusting to market forces.

Core Architecture of Perlin

• Suppliers/borrowers invest assets into Perlin's money markets via smart contracts.

• Smart contracts release pToken correlating to the foundational assets, which are then credited to user accounts as per the exchange rate.

• Suppliers deposit assets into Perlin pools to accruing interest on their loans.

• By over-collateralizing an asset, borrowers can access loans from the corresponding Perlin market. Unlike traditional P2P models, there's no need for borrower-lender negotiation. As long as liquidity prevails, Perlin's smart contracts automatically manage order pairing.

• Interest rates for borrowers are determined on-the-fly by Perlin's smart contracts, directly influenced by market dynamics. Concurrent borrowers of a token within a block duration benefit from a uniform borrowing rate.

• Interest accumulation on Perlin is block-based.

• Suppliers can reclaim their base assets whenever they desire.

• Borrowers can settle their loans without time constraints.

• If a borrower's collateral valuation plunges below the designated liquidation margin, Perlin's smart contracts autonomously initiate liquidation.