Dual Investment

Dual Investment is Peridot’s structured-yield product built on top of the core lending markets. Users open time‑boxed positions defined by strike, expiry, and direction (call/put). Positions are represented as non‑transferable ERC‑1155 tokens and are settled by an oracle at/near expiry. Capital can come from existing pTokens (collateral path) or by borrowing underlying (borrow path) in a risk‑managed way.

Architecture

• Position Token: contracts/DualInvestment/ERC1155DualPosition.sol stores encoded position parameters and enforces mint/burn‑only flows.

• Manager: DualInvestmentManager(.Upgradeable) validates inputs, coordinates collateral/borrow flows, mints positions.

• Vault: VaultExecutor handles redeem/mint for pTokens, withdrawal for settlement, and optional swaps.

• Settlement: SettlementEngine reads price from oracle, determines winning side, executes payout, and burns the position.

• Router: CompoundBorrowRouter performs safe borrows and routes funds to the vault.

• Risk: RiskGuard enforces health factor, market utilization, and size limits.

• DEX: PancakeSwapAdapter provides quotes and swaps (V2/V3).

Key Flows

• Enter with Collateral

  1. Manager validates and generates tokenId;

  2. VaultExecutor redeems user pTokens → supplies underlying to protocol;

  3. Position minted to user;

  4. ) Risk tracking updated.

• Enter with Borrow

  1. Manager validates;

  2. Router checks health/liquidity, borrows underlying, routes to VaultExecutor;

  3. Vault supplies and position is minted;

  4. Risk tracking updated.

• Settlement

  1. SettlementEngine gets settlement price;

  2. Computes winning pToken;

  3. Tries direct withdraw/mint, else withdraws from source and swaps;

  4. Mints payout pTokens to user and burns the position.

Admin & Observability

• Configure supported markets, limits, routers, adapters, and treasury/rewards (Upgradeable).

• Events: PositionEntered, PositionSettled, BorrowAndRoute, UserCTokensRedeemed, utilization and risk updates.