Case Study
RXLend
Building a Multi-Market Lending Protocol
REAX
reax.pro
SolidityEthereumReactTypeScriptDIA Oracle+5 more
Project Overview
Transforming vision into reality
About This Project
A comprehensive case study detailing ChainScore Labs' development of RXLend, an innovative lending and borrowing protocol designed to serve both traditional and synthetic assets on Mantle. We engineered a flexible platform with isolated market architecture, allowing users to supply collateral and borrow against both traditional cryptocurrencies and REAX synthetic assets. The protocol features multi-pool lending markets, variable and stable rate options, real-time position monitoring, and advanced risk management systems to ensure platform stability while maximizing capital efficiency.
Client
REAX
reax.proTimeline
Start
September 2023
Completed
August 2024
Duration
11 months
INTRODUCTION
Enabling Capital Efficiency for Synthetic Assets
The DeFi lending landscape has historically focused on traditional cryptocurrencies, leaving synthetic assets underserved and limiting capital efficiency for users of these innovative financial products. RXLend was conceived to fill this critical gap by creating a lending protocol specifically designed to support both traditional cryptocurrencies and the synthetic assets created through the REAX protocol. This case study details how ChainScore Labs engineered a flexible, secure lending platform that addresses the unique challenges of synthetic asset collateralization while maintaining the familiar borrowing experience DeFi users expect. By implementing isolated lending markets with tailored risk parameters, we've created an ecosystem where users can maximize the utility of their synthetic positions without compromising on security or usability.
MULTI-MARKET-ARCHITECTURE
Multi-Market Lending Architecture
RXLend is built on a specialized multi-market architecture that maintains strict isolation between different asset classes, allowing for optimized risk management while maximizing capital efficiency. This design ensures that volatility or issues in one market don't affect the stability of others.
- Isolated Market Design: Engineered separate lending markets for different asset classes, with REAX Lending supporting traditional assets (ETH, BTC, USDT) and Crypto Lending focusing on synthetic assets from the Crypto Synthetic Pool (cETH, cBTC, cUSD).
- Market-Specific Parameters: Implemented customized risk parameters for each market, including collateralization ratios, liquidation thresholds, and interest rate models tailored to the specific characteristics of each asset class.
- Cross-Market Compatibility: Designed a unified interface that allows users to seamlessly navigate between markets while maintaining clear boundaries in the underlying protocol logic to prevent risk contagion.
- Scalable Framework: Created an extensible architecture that can accommodate new lending markets as additional synthetic asset classes are developed, ensuring the protocol can grow alongside the REAX ecosystem.
2+
Isolated Markets
REAX Lending & Crypto Lending
10+
Assets Per Pool
Carefully selected assets
Minimized
Risk Contagion
Through strict isolation
RXLend Multi-Pool Architecture
COLLATERAL-MANAGEMENT
Advanced Collateral Management
At the core of RXLend is a sophisticated collateral management system designed to handle the unique characteristics of both traditional and synthetic assets. This system enables users to supply various assets as collateral while maintaining appropriate risk controls.
- Multi-Asset Collateral: Implemented support for a diverse range of collateral assets across markets, with carefully calibrated collateral factors based on liquidity, volatility, and market depth of each asset.
- Synthetic Asset Collateralization: Developed specialized logic for synthetic assets that accounts for their unique properties, including oracle dependencies and potential correlation with underlying markets.
- Real-time Collateral Valuation: Created a system that continuously updates collateral valuations using oracle price feeds, ensuring accurate assessment of position health and timely liquidation when necessary.
- Collateral Efficiency Optimization: Designed mechanisms to maximize capital efficiency by allowing users to supply multiple collateral types against their borrowing positions, with intelligent weighting based on risk profiles.
20+
Collateral Types
Across all markets
Asset-specific
Collateral Factors
Based on risk profile
Real-time
Valuation Updates
Using oracle price feeds
RXLend Collateral Assets Table
BORROWING-MECHANICS
Flexible Borrowing Options
Meeting Diverse User Needs
RXLend offers users flexible borrowing options designed to accommodate different risk preferences and financial strategies. By providing both stable and variable interest rates, the protocol enables users to optimize their borrowing based on market conditions and personal requirements.
- Dual Interest Rate Model: Implemented both stable and variable interest rate options for borrowers, with stable rates providing predictable repayment terms and variable rates fluctuating based on market utilization.
- Utilization-Based Rates: Designed interest rate models that dynamically adjust based on pool utilization, incentivizing balanced capital deployment with lower rates during low utilization and higher rates as utilization increases.
- Synthetic Asset Borrowing: Created specialized borrowing mechanisms for synthetic assets, enabling users to gain exposure to these instruments without directly minting them through the core REAX protocol.
- Leverage Optimization: Implemented tools that help users optimize their borrowing to achieve desired leverage levels, with clear visibility into position health and liquidation thresholds.
- Borrowing Limits: Established asset-specific and user-specific borrowing limits based on the value and risk profile of supplied collateral, ensuring protocol solvency while maximizing capital efficiency.
Available Assets for Borrowing
Stable & Variable
Interest Rate Types
User-selectable options
25+
Borrowable Assets
Traditional & synthetic
Up to 80%
Max LTV Ratio
Asset-dependent
RISK-MANAGEMENT
Comprehensive Risk Management
RXLend incorporates a multi-faceted risk management framework designed to protect both users and the protocol from market volatility, oracle failures, and other potential risks. This system ensures the long-term stability and reliability of the lending platform.
- Dynamic Liquidation Thresholds: Implemented asset-specific liquidation thresholds that trigger position liquidation when health factors fall below required levels, with parameters carefully calibrated based on asset volatility and market depth.
- Liquidation Incentives: Designed an incentive system that encourages efficient liquidation of underwater positions by external liquidators, with bonus rewards scaled according to position size and market conditions.
- Oracle Risk Mitigation: Integrated multiple oracle providers with fallback mechanisms and validity checks to ensure reliable price data, with circuit breakers that pause borrowing during extreme market conditions or oracle failures.
- Health Factor Monitoring: Created intuitive health factor visualization tools that help users track their position status in real-time, with early warning notifications as positions approach liquidation thresholds.
- Emergency Shutdown Mechanism: Implemented a tiered emergency response system that can selectively pause protocol functions or trigger an orderly shutdown in extreme scenarios, protecting user funds and ensuring fair resolution.
Asset-specific
Liquidation Threshold
Typically 80-90% of LTV
5-15%
Liquidation Bonus
Based on asset liquidity
1.1 and below
Health Factor Alert
Warning threshold
Position Health Monitoring Interface
INTEGRATION-WITH-REAX
Seamless Integration
RXLend is designed to work in perfect harmony with any assets, creating a unified ecosystem that maximizes value for users of both platforms. The integration enables new use cases and enhanced capital efficiency for synthetic assets.
- Synthetic Asset Support: Developed specialized lending markets for REAX synthetic assets, enabling users to leverage their synthetic positions without unwinding them or converting to traditional assets.
- Cross-Protocol Strategies: Enabled powerful cross-protocol strategies where users can borrow assets on RXLend to mint synthetics on REAX, or use synthetic assets as collateral to borrow traditional cryptocurrencies.
- Unified User Experience: Created a seamless user experience with consistent design language, shared authentication, and intuitive navigation between REAX and RXLend functionality.
- Complementary Tokenomics: Designed complementary incentive structures that reward users participating in both protocols, creating positive feedback loops that enhance liquidity and utilization across the ecosystem.
All REAX assets
Integrated Synthetics
Full ecosystem support
Seamless
Cross-Protocol UX
Single interface for both
10+
Combined Strategies
Novel DeFi workflows
USER-EXPERIENCE
Intuitive User Experience
Simplifying Complex Lending Mechanics
RXLend features a thoughtfully designed user interface that simplifies complex lending operations, making DeFi borrowing accessible to users with varying levels of experience. The interface provides clear information on all relevant parameters while guiding users through each step of the lending and borrowing process.
- Step-by-Step Workflow: Designed an intuitive step-by-step workflow that guides users through the lending and borrowing process, from selecting a market to monitoring positions, with contextual help at each stage.
- Real-Time Position Monitoring: Implemented comprehensive dashboards with real-time updates on collateral value, borrowed amounts, health factors, and interest accrual, giving users full visibility into their positions.
- Risk Visualization: Created visual indicators that clearly communicate position risk, liquidation thresholds, and optimal borrowing levels, helping users make informed decisions and avoid liquidation.
- Educational Resources: Integrated contextual tutorials, tooltips, and documentation throughout the interface, educating users about lending concepts and best practices while they interact with the protocol.
- Mobile Optimization: Developed a fully responsive interface that works seamlessly across devices, allowing users to manage their lending positions on desktop or mobile with equal effectiveness.
5
User Flow Steps
From market selection to monitoring
10+
Position Metrics
Real-time monitoring indicators
Extensive
Educational Components
Integrated throughout the UI
SECURITY-MEASURES
Security Architecture
Protecting User Assets and Protocol Stability
- Formal Verification: Applied formal verification methods to critical protocol components, mathematically proving the correctness of key functions like liquidation logic and interest accrual.
- Tiered Access Control: Implemented granular access control systems with time-locks and multi-signature requirements for sensitive administrative functions, preventing unauthorized parameter changes.
- Economic Attack Mitigation: Designed the protocol to resist various economic attack vectors, including flash loans, oracle manipulation, and governance attacks, through carefully calibrated economic parameters.
- Fail-Safe Mechanisms: Created circuit breakers and emergency pause functions that can halt specific protocol operations during detected anomalies, preventing cascading failures or exploitation.
- Independent Security Audits: Conducted multiple rounds of security audits with leading blockchain security firms, addressing all identified issues and implementing suggested enhancements.
- Incremental Deployment: Followed a conservative deployment strategy with initial asset listings limited to well-established cryptocurrencies, gradually expanding to more assets as the protocol demonstrated stability.
- Continuous Monitoring: Implemented comprehensive on-chain and off-chain monitoring systems that track key protocol metrics and alert the team to potential issues before they can impact users.
- Bug Bounty Program: Established an ongoing bug bounty program with significant rewards for identifying security vulnerabilities, incentivizing responsible disclosure from the security research community.
Metrics
Future Developments
RXLend represents a significant advancement in DeFi lending for synthetic assets, but it's just the beginning of our vision for integrated financial services. The roadmap includes several exciting enhancements that will further expand the protocol's capabilities and user benefits. Planned developments include cross-chain lending markets that will allow users to access liquidity across multiple blockchains, advanced analytics tools providing deeper insights into lending performance and opportunities, automated position management features that can optimize borrowing strategies based on user preferences, and expanded asset support bringing more synthetic and traditional assets into the lending ecosystem. We're also developing enhanced governance mechanisms that will give the community greater control over protocol parameters and evolution, ensuring RXLend continues to meet the needs of its users while maintaining the highest standards of security and efficiency. Through this ongoing innovation, RXLend will continue to push the boundaries of what's possible in DeFi lending, particularly for synthetic assets.
1,000+
Active Borrowers
Target for first quarter
100% quarterly
TVL Growth
Projected increase
2-3 annually
New Markets
Planned expansion rate
Cross-chain
Future Integration
Multi-blockchain support
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