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 Model
  • How It Works
  • The Benefits
  1. Introduction
  2. Why Cross-Chain DeFi?

How our Hub & Spoke model addresses these challenges

Peridot Protocol solves DeFi’s fragmentation and complexity by using a Hub & Spoke architecture powered by Wormhole.

The Model

  • Hub Chain: A fast, EVM-compatible chain like Sei acts as the protocol's central brain. It handles:

    • Vault balances

    • Interest rate logic

    • Liquidations

    • Oracle integrations

  • Spoke Chains: User entry points (e.g., Solana, Ethereum, Sui) where deposits, borrows, and repayments are initiated.

How It Works

  1. User interacts with a Spoke Contract on their preferred chain.

  2. A Wormhole message + token transfer is triggered to the Hub.

  3. The Hub Contract processes the logic and updates the user’s vault.

  4. Funds or confirmations are returned to the Spoke chain if needed.

The Benefits

  • Unified Liquidity: All assets across chains contribute to one central pool.

  • Simple UX: Users never have to manually bridge or manage multiple wallets.

  • Faster Execution: Finality and logic stay on the Hub, while Spokes handle user interaction.

  • Modular Scaling: Easily expand to new chains without duplicating core logic.

With this architecture, Peridot makes cross-chain DeFi feel like single-chain DeFi — but better.

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Last updated 11 days ago