SuiLo

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

1. 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

1. 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)

1. 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

1. 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

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