isolated risk

less money less problems

The Minimal Proxy Contract (MPC) design implements a containerized approach to loans taken through the protocol. Each loan is a standalone contract with independent address and state. The functionality available to a loan is defined in by the implementation of the Depot plugin.

This approach contains and isolates risk between loans, which means the protocol does not enforce any restrictions on the terms lenders and borrowers can use, because a faulty position cannot impact other loans. Everyone is free to be as clever or as degenerate as they want to be.

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