A decentralized module and network enabling users to delegate idle funds in smart accounts to solvers through a secure staking mechanism. Solvers gain access to enhanced liquidity for facilitating transactions, while users earn returns by leasing their funds to the network.
- Limited Access to Solver Networks: Only big protocols and market makers can effectively operate solvers due to liquidity constraints. Small players with good algorithms lack sufficient funds to facilitate transactions.
- Lack of Delegation Options: Users with idle funds in smart accounts have no way to delegate these funds to solvers, missing opportunities for earning returns.
Users can enable a module in their smart accounts to delegate idle funds to the solver network. They configure parameters such as APR, token type, and lease duration.
Solvers join the network by staking an amount, granting access to up to 𝑛^2 liquidity (based on quadratic staking) under an honest-party assumption.
A watchtower monitors transactions. If a solver fails to return funds within the designated period (e.g., 7 days), a fraud-proof mechanism slashes the solver's stake and compensates users.
- Users log in to a dashboard to view their smart account balance
- They enable the module, configuring the APR, token type, and lease amount/duration
- Solvers register on the network dashboard and stake an amount to participate
- When a protocol needs funds, the solver requests liquidity from the network
- The required amount is sourced from multiple users (e.g., x1, x2, ...xn)
Solvers return the borrowed amount within the set period (e.g., 7 days). If not, the fraud-proof mechanism activates, slashing the solver's stake and distributing it among users.