Cooler V2 Technical Documentation

System Overview

Cooler V2 is a lending system that allows users to borrow USDS against gOHM collateral. Key differences from V1:

1. Perpetual positions instead of fixed-term loans

2. Single unified position per user instead of separate loan entries

3. Governance-controlled LTV growth through drip system

4. Built to be integrated into other protocols

Core Components

MonoCooler

• Main lending contract managing user positions

• Handles borrows, repayments, and liquidations

• Tracks user collateral and debt

CoolerTreasuryBorrower

• Interfaces with Treasury to access reserves

• Converts between USDS and sUSDS when moving funds to/from Treasury

CoolerLtvOracle

• Sets and updates lending and liquidation ratios

• Implements controlled LTV increases

• Can only increase or maintain LTV, never decrease

Delegation System

• Allows gOHM collateral to maintain voting power

• Users can delegate to up to 10 addresses, unless a specific address is whitelisted for a higher cap

• Each delegate gets their own escrow contract

Key Functions

Position Management

• Borrow USDS against gOHM at current LTV ratio

• Add or remove collateral

• Repay debt partially or fully

• Interest accrues continuously

Risk Management

• Separate thresholds for borrowing vs liquidation

• System-wide pause for borrows and liquidations

• Minimum position size of 1000 USDS

Governance

• Collateral retains voting power through delegation

• Multiple delegates per position

• Delegates change with position size

Admin Controls

• Emergency: Can pause system

• Admin: Can update parameters

• Manager: Can control protocol settings