Enjoyoors
  • WHITEPAPER
    • Introduction
    • User-abstracted rehypothecation
      • Giga CDP of Enjoyoors
      • Giga CDP design
      • Deep secondary liquidity for gigaAssets
    • Protocol stability
      • Efficient portfolio management
      • Supply regulation for gigaAssets
      • System-wide insurance
    • Risk management framework
      • Market risks
      • Technical risks
      • gigaAsset allocation rules
    • Decentralized system architecture
      • Public chain infrastructure
      • Orchestrator appchain
      • Oracles
      • Interchain communications
    • Key protocol features
      • Epochs
      • Reward auctions
      • Intelligent peg adapters
    • Further considerations
      • Making RWAs work harder
      • Own DeFi ecosystem
      • Our priorities
  • SYSTEM ARCHITECTURE
    • Overview
    • Public Blockchain Infrastructure
      • Vaults
      • gigaAsset Manager
      • Target Protocols
      • Target Protocol Adapters
      • Intelligent Peg Adapters
      • AMM Pools
      • Rewards Treasury
    • AVS Relayer
      • Relayers
    • Enjoyoors Orchestrator AppChain (L3)
      • Enjoyoors Management System
      • Orchestrator AppChain Layers
      • Security Mechanisms
      • Price Oracle
      • Governance
      • gigaCDP
      • Portfolio Management System
      • Auctions
      • Insurance Pool
    • gigaAsset Bridge
    • gigaAssets
    • Epochs
  • PROTOCOL FLOWS
    • Deposit
    • Withdraw
    • Auction
  • RISKS
    • Protocol risks
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  1. WHITEPAPER
  2. User-abstracted rehypothecation

Giga CDP design

PreviousGiga CDP of EnjoyoorsNextDeep secondary liquidity for gigaAssets

Last updated 1 month ago

To streamline protocol-level CDP management, Giga CDP is considered a decentralized portfolio. This portfolio comprises collateral in various tokens and liabilities in various gigaAssets, all across multiple blockchains. Collateral weights are positive, while liability weights are negative.

The protocol operates an internal accounting system built on top of this decentralized portfolio, which serves as the foundation for all liquidity management within the Giga CDP. This accounting system breaks the overall portfolio into segregated virtual markets parametrized by the $C-$D pair ($C - collateral asset, $D - synthetic gigaAsset). In simple words, the system links a specific part of the gigaAsset $D supply to a defined fraction of a particular vault containing the collateral asset $C. The diagram below illustrates the relationship between vaults and virtual markets:

Figure 2: Vaults and virtual markets

Each virtual market is characterized by its market LTV parameter, defined as the ratio of the total gigaAsset $D issued in this market to the total amount of collateral asset $C virtually allocated to it. Other essential parameters that Giga CDP constantly tracks include average system LTV, total collateral, and total synthetic debt.

A combination of these parameters lay in the foundation of the portfolio management system. Its central feature is ensuring the protocol solvency and targeting a certain level for the overall portfolio LTV.