Hub & Spoke
Peridot uses a Hub & Spoke architecture to connect users from any blockchain to a unified lending and investment engine.
This design allows us to:
Centralize core logic (interest rates, collateral management, liquidations, and dual investments)
Decentralize user interaction across multiple blockchains
Maintain accurate accounting on a single high-performance chain
Enable advanced products like dual investment strategies with cross-chain accessibility
The architecture is both scalable and secure, enabling low-latency cross-chain operations using Axelar's proven General Message Passing infrastructure.
The Hub
The Hub serves as the protocol's control center where all core operations occur:
Accounting & State Management: All user positions, deposits, and borrows are tracked centrally
Interest Rate Calculations: Dynamic interest accrual based on real-time utilization
Risk Management: Liquidations and collateral verification handled uniformly
Oracle Integration: Chainlink price feeds for accurate asset valuations
Dual Investment Engine: Advanced investment products and settlement logic
Liquidity Pools: Concentrated pToken markets (pUSDC, pETH, pWBTC, etc.)
The Spokes
Spoke chains are lightweight user interfaces where users can seamlessly:
Supply Assets: Deposit collateral that's automatically transferred to hub liquidity pools
Borrow Funds: Access unified hub liquidity from any supported chain
Manage Positions: Monitor health factors and manage risk across chains
Access Dual Investments: Create advanced positions without leaving their preferred chain
Cross-Chain Execution Flow
Supply Example:
User deposits USDC on Arbitrum via PeridotSpoke contract
Axelar Gateway receives tokens and cross-chain message
PeridotHubHandler on BNB Chain receives assets and payload
Hub contract mints pUSDC tokens representing the user's deposit
User immediately starts earning interest on their supplied assets
Borrow Example:
User initiates borrow request on Arbitrum
Message sent via Axelar (no tokens transferred initially)
Hub validates collateral and processes borrow against user's position
Borrowed assets sent back to user's Arbitrum wallet via Axelar
Interest begins accruing on the borrowed amount
Key Benefits
🔧 Modular Expansion: Easily add new chains without reworking core lending logic or dual investment systems.
🎯 Centralized Logic: Eliminates inconsistencies and synchronization issues across chains while maintaining decentralization where it matters.
💧 Unified Liquidity: Capital supplied on any chain powers borrowing opportunities across all supported networks.
🛡️ Safer Operations: No race conditions or cross-chain arbitrage issues - all risk management handled centrally with proven mechanisms.
⚡ Advanced Products: Dual investment strategies and sophisticated risk management available to users on any supported chain.
This Hub & Spoke model provides the foundation for a truly unified DeFi experience that scales across chains without compromising on security or functionality.
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