Protocol Documentation
What is Splyce Concord?
Splyce Concord is a peer-to-peer fixed-term lending protocol built on Stellar/Soroban. It enables borrowers to access stablecoin liquidity by posting tokenized real-world assets as collateral, while lenders earn predictable, fixed-rate yields through non-custodial vaults.
How Lending Works
Lenders deposit USDC into vaults during the collection phase. Each vault corresponds to a borrow request with predefined terms (interest rate, duration, collateral requirements). In return, lenders receive fungible vault tokens representing their share of the vault.
Browse & Select
Review available vaults on the Lend tab. Each vault displays the APY, maturity date, collateral type, and funding progress.
Deposit USDC
Deposit any amount up to the remaining capacity. Vault tokens (vBENJI) are minted proportionally to your deposit.
Earn Fixed Yield
Once a borrower takes the loan, the vault becomes active. Interest accrues at the agreed fixed rate until maturity.
Redeem or Trade
At maturity, redeem vault tokens for principal + interest. Vault tokens are also transferable and tradable on-chain before maturity.
How Borrowing Works
Borrowers access USDC liquidity by posting tokenized collateral. A borrow request defines the desired principal, interest rate, duration, and collateral amount. Once the corresponding vault is fully funded by lenders, the borrower can initiate the loan.
Browse Funded Vaults
The Borrow tab shows vaults that have been fully funded by lenders and are ready for borrowing.
Lock Collateral
Deposit the required BENJI tokens into the collateral vault. The collateral is locked for the duration of the loan.
Receive USDC
The full loan amount is transferred to your wallet immediately upon collateral deposit.
Repay at Maturity
Repay the principal plus accrued interest before maturity to unlock and reclaim your collateral.
Vault Tokens
When you deposit USDC into a vault, you receive vault tokens (e.g., vBENJI-10) representing your proportional share. These tokens are:
- •Fungible — each token in the same vault is interchangeable
- •Transferable — send to any Stellar address
- •Tradable — list on DEXs or OTC before maturity
- •Redeemable — burn at maturity for principal + yield
Vault token value increases over time as interest accrues, reflecting the yield earned by the underlying loan.
Supported Collateral
BENJI
Franklin Templeton US Gov Money Market Fund
BENJI is a tokenized representation of shares in the Franklin Templeton U.S. Government Money Market Fund, issued on the Stellar network. It provides stable, low-risk collateral backed by U.S. government securities.
Additional RWA collateral types are planned for future releases.
Protocol Architecture
The protocol is composed of modular Soroban smart contracts:
- Offer Book — Manages borrow requests with specified terms (amount, rate, duration, collateral).
- Lending Vault Factory — Deploys ERC-4626 style vaults that pool lender deposits and issue tradable vault tokens.
- Collateral Vault — Holds borrower collateral in escrow for the loan duration.
- Loan Position — Tracks individual loan state: principal, interest, maturity, and repayment status.
- Settlement Engine — Orchestrates the full lifecycle: matching, disbursement, repayment, and default handling.
Risk Disclosures
Smart Contract Risk
While contracts are tested and audited, vulnerabilities may exist. Only deposit amounts you can afford to lose.
Default Risk
If a borrower fails to repay by maturity, the collateral is liquidated. However, collateral value fluctuations may result in partial recovery.
Liquidity Risk
Vault tokens can be traded before maturity, but secondary market liquidity is not guaranteed.
Collateral Volatility
RWA token prices depend on the underlying asset. Extreme market conditions could affect collateral adequacy.
Frequently Asked Questions
What happens if the vault doesn't reach full funding?
If the vault doesn't fill by the deposit deadline, lenders can withdraw their deposits. No loan is created.
Can I withdraw my deposit before the loan matures?
Direct withdrawal is not possible during an active loan. However, you can sell your vault tokens on secondary markets to exit your position early.
What determines the interest rate?
Interest rates are set by the borrower when creating the borrow request. Lenders choose which vaults to fund based on the offered rate and other terms.
How is collateral liquidated on default?
If the borrower fails to repay by maturity, the Settlement Engine triggers liquidation. The collateral is sold and proceeds are distributed to vault token holders proportionally.
Are vault tokens transferable?
Yes. Vault tokens are standard Soroban tokens — fully fungible, transferable, and tradable on any compatible DEX or OTC channel.
What collateral types are supported?
Currently only BENJI (Franklin Templeton US Gov Money Market Fund). Additional tokenized real-world assets will be added in future protocol versions.