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How it works

Take a look under the hood


Core Architectureโ€‹

The protocol at its core consists of a lending and borrowing engine and modular ancillary services that can be added at any point in time via a governance vote.

  • Vault: gathers deposits from LPs and issues loans to services;
  • iTokens: yield-bearing ERC20 tokens that map LPs' deposits into the Vault;
  • Strategy: performs a set of actions on other DeFi protocols to generate a revenue;
  • Liquidator bots: ensure all loans are covered, liquidating the related position if not.

On a general level, Ithil is a two-sided platform featuring lenders (or LPs) and borrowers (so on called Risk Takers). LPs stake liquidity in the Vault and obtain in exchange an APY in the same token they deposited. Risk-takers, on the other hand, can execute whitelisted services with a capital boost by adding a margin as protection. Only when the risk-taker closes a position, they can withdraw eventual profits, provided their investment can pay off the loan and the protocol fees.