Intent Settlement

When a borrower signs an intent for a fixed-rate loan, they are merely expressing a cryptographic desire. The actual execution of this loan on the blockchain must be flawless, atomic, and strictly isolated to prevent any systemic risk.

IRIS utilizes a highly optimized settlement architecture to guarantee that your collateral is never exposed to the wider protocol or other users' debt.

Atomic Borrower Settlement (120s Review Window)

The protocol uses an off-chain Request-For-Quote (RFQ) server to orchestrate the auction between solvers. When the auction concludes, the RFQ coordinator presents the winning solver's cryptographic bid back to the borrower.

The borrower then has exactly 120 seconds to review the rate. If it makes financial sense, the borrower submits the final settlement transaction to the OrderManager smart contract.

The settlement transaction is purely atomic. It executes in a single, indivisible block of computation:

1. The OrderManager validates the solver's signature and ensures the quote is still valid.
2. The BondManager locks a mathematical percentage of the solver's capital to back your specific loan duration.
3. A new, isolated LoanPod is deployed exclusively for you.
4. Your collateral is pulled into the Pod, the variable debt is drawn from the underlying venue (e.g., Aave), and the borrowed funds are deposited directly into your wallet.

If any single step fails—for example, if the solver doesn't have enough bond capital or the venue rejects the deposit—the entire transaction reverts. Your collateral never leaves your wallet unless the fixed-rate loan is 100% successfully originated.

EIP-1167 Loan Isolation

Unlike traditional lending protocols that pool everyone's assets into a single massive smart contract, IRIS does not pool borrower collateral.

Every single loan intent deployed through IRIS generates a unique, single-use smart contract proxy known as a LoanPod (following the EIP-1167 Minimal Proxy standard).

This isolation architecture provides absolute peace of mind:

• No Shared Risk: Your collateral sits in a locked vault that only holds your assets. If another borrower's position becomes undercollateralized or experiences a sophisticated edge-case exploit, your Pod remains mathematically unaffected.
• Solver Constraints: The solver underwriting your fixed rate is granted extremely narrow permissions to rebalance the debt within your specific Pod to find cheaper variable rates. However, they are cryptographically walled off from invoking malicious logic or withdrawing your collateral, thanks to the rigid invariants enforced by the PositionGuard sentinel contract.