Cog Overview

What is Cog?

Cog Finance is a lending platform on Scroll offering isolated lending where each pool is exposed to only one type of collateral and one oracle, allowing users to manage their risk independently. Users can lend out assets, choose accepted collateral, and earn yields with changing interest rates. It operates permissionlessly, enabling users to deploy pools for any asset without waiting on protocol maintainers.

Main Features
Permissionless pools
Protocol-Owned Liquidity (Tinkermaster)
Multi-Hop routing system
Partial Liquidations
Vault-based system
Blockchains
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Frequently asked questions

Tinkermaster refers to a mechanism where the protocol itself provides liquidity to its own liquidity pools to improve the health and stability of the lending platform.. This ensures that there is always a baseline level of liquidity available in the pools, even during periods of low user activity or market volatility. Tinkermaster helps stabilize the protocol and maintain efficient trading conditions for users by preventing liquidity shortages and excessive price slippage.

Multi-Hop Routing is a feature that allows users to find the best borrowing or lending opportunities across multiple liquidity pools. Instead of executing a single transaction directly from one asset to another, Multi-Hop Routing enables users to route their transactions through multiple intermediary assets, potentially achieving better rates or lower fees. This feature enhances efficiency and flexibility in decentralized trading by allowing users to navigate through various liquidity pools to find the most favorable exchange rates and liquidity conditions for their transactions.

Partial liquidation is a risk management mechanism used to protect lenders from potential losses in the event that a borrower defaults on their loan. To prevent the borrower from completely defaulting and to protect lenders' funds, a portion of the borrower's collateral is automatically sold in the open market. This approach helps to mitigate the impact on users by preventing the loss of their entire collateral in case of price fluctuations or market volatility. Partial Liquidation helps to maintain the stability and integrity of the protocol while minimizing the risk for users.

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