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

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