Peridot Protocol
  • Introduction
    • Overview
      • What is Peridot?
      • Our Mission & Vision
      • Key Value Propositions
    • Why Cross-Chain DeFi?
      • Current Challenges in DeFi
      • How our Hub & Spoke model addresses these challenges
  • Architecture & Design
    • System Architecture
      • Overview of the Hub & Spoke Model
    • Core Components
      • Compound Based Lending & Borrowing Modules
      • Wormhole Integration: Token Transfer with Payload
      • On-Chain Accounting & Interest Rate Models
    • Integration Details
  • Easy Mode: Onramp & Offramp for New Users
    • Overview of Easy Mode
    • Goals
    • Key Features
  • Contact
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On this page
  • The Hub
  • The Spokes
  • Cross-Chain Execution (Powered by Wormhole)
  • Benefits
  1. Architecture & Design
  2. System Architecture

Overview of the Hub & Spoke Model

The Hub

  • The Hub is a fast EVM chain that acts as the protocol’s control center.

  • All accounting, interest accrual, liquidations, and oracle integrations happen here.

  • It holds the user's vault state, meaning deposits and borrows are globally visible and manageable.

The Spokes

  • Spoke Chains include any additional networks like Ethereum, Solana, or Sui.

  • They are lightweight interfaces where users can:

    • Deposit collateral

    • Borrow or repay funds

Cross-Chain Execution (Powered by Wormhole)

  1. User interacts with a Spoke Contract (e.g., deposits USDC on Solana).

  2. A token transfer with a payload is triggered via Wormhole.

  3. The message and assets are received on the Hub chain.

  4. The Hub Contract updates the vault, verifies collateral, and allows borrowing.

  5. If needed, borrowed assets are sent back cross-chain.

Benefits

  • Modular Expansion: Easily add new chains without reworking logic.

  • Centralized Logic: Eliminates inconsistencies and sync issues across chains.

  • Unified Liquidity: Capital on one chain can power borrowing on another.

  • Safer Liquidations: No race conditions, all handled centrally.

This model provides the foundation for a truly unified DeFi experience, across chains and without compromise.

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Last updated 11 days ago