Overview

Overview

Stormbit is built on a modular architecture that separates core accounting from business logic. This design enables unlimited extensibility without forking the protocol.

The core protocol consists of the LendingManager (central orchestrator), Term Library (lender-side accounting), and Loan Library (borrower-side state). Extensions include Hooks (custom logic injection), Modules (collateral management), and a Liquidator (auction execution).

Core Components

LendingManager

The central orchestrator coordinating all lending operations. It handles term operations (create pools, deposit, withdraw, settle), loan operations (create loans, allocate, repay), fee management, and access control.

Term Library

Manages lender-side accounting including positions (depositor balances), allocations (capital locked in active loans), settlement (interest distribution), and locks (preventing withdrawal of allocated funds).

Loan Library

Manages borrower-side state including loan creation, state transitions (pending, active, repaid, liquidated), maturity tracking, and repayment processing.

Hooks

Inject custom logic at lifecycle events without modifying core protocol. Hook points include term initialization, deposits and withdrawals, loan allocation, and repayment.

Modules

Pluggable collateral validators and managers supporting ERC20 with LTV validation, NFT custody, and attestation verification.

Liquidator

Handles defaulted loans through a declining price auction mechanism.

Design Principles

Separation of Concerns — Core accounting is immutable. New features are added via hooks and modules, not protocol changes.

Gas Efficiency — Optimized state reads, lazy settlement (interest distributed only when users interact), and batch operations.

Composability — Hooks can integrate with other protocols, modules support various collateral types, and terms can be extended with custom logic.

Security — Upgradeable with appropriate safeguards, reentrancy protection on all entry points, and role-based access control.

Protocol Flow

The complete loan lifecycle: a lender creates a term, depositors add funds, a borrower creates a loan request with locked collateral, the lender allocates funds, the loan becomes active and protected until maturity, then either the borrower repays (collateral returned) or defaults (auction process), and interest distributes to lenders.

Next Steps

• Terms & Loans — Core primitives

• Hooks — Customizing protocol behavior

• Modules — Collateral management

• Liquidation — Default handling

• Risk Pricing — APR calculation