PayPledge

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System ​

  • System: For technical users interested in the platform's architecture, smart contracts, and underlying technology, its architecture, smart contracts, security measures, data flow.
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    • alt text Security against malactors.

Overview ​

The PayPledge platform spans across a Private EVM Network,and a Public EVM Network, with a Bridge connecting the two. The application interfaces with these networks to allow trade transaction underwriting, payments processing, and early financing for trade transactions.

Private EVM Network ​

The Private EVM Network is a permissioned network, hosted by the PayPledge platform admin. This network is the core layer for trade transaction underwriting and PayPledge. It hosts smart contracts that manage the underwriting process and provide crypto-backed guarantees for trade transactions, aiming for secure and private execution.

Key components on the Private EVM Network include:

  • The CollateralManager Contract, which facilitates the underwriting process by managing the submission and selection of Credit Underwriting Offers (CUOfs) with trade token collateral. This contract deposits the trade token collateral to PayPledges and tracks their underwriters.
  • The PayPledge Contracts, which serve as crypto-backed PayPledges, governing the lifecycle of the PayPledge, including collateral handling and dispute resolution.
  • Trade Tokens (ERC-3643), are dollar-pegged permissioned tokens, used as collateral on the platform. The supply of these tokens is governed by the Bridge Service, backed by the Liquidity Pool deposits on the Public EVM Network.
  • Token Exchange Contracts, which facilitate exchange of tokens, for other tokens or off-chain fiat payments. They provide a safe mechanism to redeem tokens for purposes like early financing.

Public EVM Network ​

The public EVM network is used by the platform to host crypto liquidity pool, and to route payments and payouts. It serves as the entry point for users using crypto based payments, and for Underwriters to deposit crypto collateral in the liquidity pool.

Components on the Public EVM Network include:

  • The Liquidity Pool Contract, a smart contract that manages coin deposits and withdrawals.
  • Exchange Traded ERC-20 Coins(ETCoins): such as ERC-20 forms of BTC/ETH/OP/USDT, which serve as the primary currency for liquidity.

The workflow involves underwriters depositing ETCoins into the Liquidity Pool contract, and non-underwriting users redeeming the deposited liquidity in the event of a defaulted payment.

Bridging Service ​

The Bridge, is an oracle service, that facilitates a two-way peg between the crypto collateral on the public network, and Trade Tokens on the private network.

The bridge is responsible leverage-based token issuance, redemption, and overleverage control.

When an underwriter deposits their ETCoins into the LiquidityPool on the public Layer-1 network, the Bridge Service is notified through the pool's events log. This triggers the Bridge Service to interact with the TradeTokenBridge smart contract on the private EVM network and mint Trade Tokens. The new supply for the Trade Tokens is calculated by the service according to the applicable leverage, overleverage history and the dollar-value of the deposit. The leverage-adjusted new supply of Trade Tokens is creditted to the underwriter's address.

The TradeTokenBridge smart contract (ERC-3643) and the Liquidity Pool smart contract are configured with special governance permissions, allowing the Bridge Service to maintain the token supplies.

In scenarios of buyer default and subsequent collateral claim, the Bridge Service also facilitates the reverse bridging of Trade Tokens back to their underlying crypto collateral. This involves tracking withdrawal requests on the TradeTokenBridge smart contract, and interacting with the LiquidityPool to release equivalent deposited ETCoins to the claimant. The TradeTokenBridge is designed to manage the minting and burning of Trade Tokens and is governed by the Bridge Service and platform admin.

Learn more ​

  • Smart Contracts: Comprehensive documentation for the core smart contracts that power the platform.
  • Smart Contract Interactions: Understand how the various smart contracts and external services interact with each other.
  • Security Considerations: Dive into the technical security features implemented across the platform, including access control, collateral safety, and reentrancy protection.
  • Data Flow and Event Handling: Learn how data moves through the system and how events are used to signal state changes and trigger actions.