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IRIS is easiest to understand as four layers operating together.

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1. Quote layer

A borrower request sets the collateral asset, collateral amount, debt asset, debt amount, tenor, and the set of venues the borrower is willing to use. A solver answers by choosing:
  • the fixed rate it is willing to offer,
  • the starting venue within that allowed set,
  • the venue-specific market configuration,
  • how much debt-asset backing it will post.

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2. Isolated account per loan

Every accepted quote becomes its own isolated account. Borrower collateral, venue debt, and solver backing for that loan are tracked against that single position rather than mixed into a global pool. This isolation matters because one stressed loan cannot directly consume another loan’s collateral.

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3. Venue execution layer

The isolated account opens and later manages the live borrow on the chosen venue. Current venues in this repo are Aave V3 and Morpho Blue. The solver chooses the starting venue from the borrower’s allowed set and can later move the position within that same allowed set if funding conditions improve.

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4. Backing policy layer

Each live position carries both:
  • posted solver backing,
  • a minimum required backing level.
The minimum is currently driven by debt asset and duration, so longer exposure generally requires more solver capital.

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What IRIS tracks economically

For each live position, IRIS keeps track of:
  • borrower collateral still supporting the position,
  • venue debt still outstanding,
  • solver backing still available to absorb losses,
  • accrued difference between borrower fixed obligations and venue floating cost,
  • any recognized collateral-side surplus belonging economically to the solver.

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Resolution happens in two phases

Economic resolution and asset return are not the same event. First, the fixed-versus-floating economics are settled and solver backing is adjusted. Only after that is the remaining venue position unwound and leftover collateral released back to the borrower.

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Why this structure matters to solvers

For solver operations, the key takeaway is that backing is attached to each position rather than pooled freely across the whole book. That makes per-position monitoring, migration decisions, and close discipline much more important than simply looking at aggregate notional.

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Current minimum schedule

For position-level capital behavior, see Bond Mechanics and Lifecycle Flows.