SuiLo
Suilo is a lending protocol on Sui that enables users to work with DEFI using DeepBook
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About
Suilo is a comprehensive DeFi lending protocol built on Sui blockchain, designed to facilitate peer-to-peer lending and borrowing with robust risk management. The protocol operates through decentralized markets that pair debt tokens (like SUI) with collateral tokens, allowing flexible cross-asset lending. Core Architecture Multi-Module Design: - Vault Module - Generic storage wrapper for managing coin balances (liquidity pools and collateral reserves) - Interest Module - Sophisticated rate model using compounding indices to track debt growth over time - Loan Module - Central market orchestrator handling deposits, borrows, repayments, and liquidations - Admin Module - Capability-based system for creating and configuring markets - Liquidation Module - Standalone interface for liquidating under-collateralized positions Key Features 1. Liquidity Provisioning - Users deposit SUI (or other debt tokens) into liquidity pools - Deposits earn passive interest as borrowers pay fees - Users can withdraw liquidity anytime, subject to availability 2. Collateralized Borrowing - Users lock collateral tokens to borrow debt tokens - Loan-to-Value (LTV) limits prevent over-leverage - Example: 80% LTV means $100 collateral allows $80 borrowing - Multiple positions per user supported 3. Compound Interest Accrual - Interest accrues continuously based on elapsed time - Borrow index converts between debt shares and actual debt - Interest rate configurable per market (basis points per year) - Formula: debt = shares * (index / 1_000_000_000) 4. Liquidation Mechanism - Positions with debt exceeding LTV threshold are liquidatable - Liquidators repay debt and receive collateral + bonus - Liquidation bonus (e.g., 5%) incentivizes liquidators - Prevents protocol insolvency from collateral price drops 5. Admin Capabilities - Markets created only with AdminCap (transferred to deployer) - Configurable parameters: LTV, liquidation bonus, interest rate - Upgrade capabilities for future protocol improvements Technical Implementation Sui-Specific Features: - Uses Sui's object model for state management - Share objects for immutable market configuration - Table structures for user position tracking - Clock integration for time-based interest accrual - Efficient coin operations using Balance<T> Safety Measures: - Assertions prevent invalid amounts, insufficient liquidity, and over-borrowing - Price oracle integration (external) for LTV calculations - Separation of concerns between modules for maintainability
How it's made
Phase 1: Core Structures - Defined Vault for coin management - Created RateModel for interest math - Established Market data structure Phase 2: Market Operations - Implemented deposit_liquidity and withdraw_liquidity - Built borrow with LTV enforcement - Added repay with share-burning logic Phase 3: Risk Management - Implemented liquidation with collateral seizure - Added liquidation bonus calculations - Created admin market creation Phase 4: Refinement - Added zero-value coin handling - Fixed type casting issues - Ensured proper resource cleanup Compilation & Deployment Build Process: sui move build # Compiles all modules Deployment: sui client publish --gas-budget 100000000 Result: - Package: 0x7fefc406bba60b421482f1ca1c45c6d1a7c285000dc6352d3151844be8f0ce73 - AdminCap: 0x92ef5a9c0b494fd83de6a21a30fe9fbb3a50f44e663760d725f26eced2e31185 - Network: Sui Testnet