Proof of Collateral

• Total vault deposits and their types,
• Accrued (but not yet claimed) yield,
• Any outstanding borrowing or leveraged positions,
• The real-time net collateral eligible for new activity.

• State engine: All borrow, repay, withdraw, or leverage actions are instantly reconciled and validated via the PoC system. Users can never become “over-collateralized” due to stale data, and the protocol can enforce liquidation or risk caps with precision.
• Composability point:
  • PoC acts as the single source of truth for anyone in the wider DeFi ecosystem wanting to verify a user’s collateral state.
  • Partner protocols (on Berachain or, via relayer, on other chains) can reference PoC state to accept users’ positions as collateral—with no need for additional bridges or token wrappers.

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How It Works

1. Live State Tracking
   • On every deposit, withdrawal, yield event, borrow, or repay, PoC state is updated immediately via contract calls or emitted events.
   • PoC holds: asset balances, yield, outstanding borrows, and a computed health factor for every user.
2. Core Logic for Eligibility & Risk
   • All maximum borrow limits, withdrawal safety checks, and liquidation triggers are enforced using your current PoC state—no operation proceeds if it would make your account unsafe.
   • All actions across the protocol (even from different apps or integrations) funnel through PoC (with relayers), guaranteeing no “side channel” or hidden risk buildup.
3. External Integration & Composability
   • Protocols inside and outside Positions can programmatically integrate PoC—via relayer sync—for real-time collateral eligibility.
4. Atomic Security
   • Any update to PoC is either fully completed (commit) or reverts if it fails any check—ensuring integrity even in the face of errors, rapid price changes, or relay lags.
   • Liquidations, risk checks, and withdrawals always use the live PoC, never stale data.