Approach and Inspiration

Summary

Discover MethLab DLV's design principles and inspiration.

MethLab Approach: Design Heuristics

MethLab DLV's architecture builds on top of other lending protocols and protocols in DeFi that are based on centralised assumptions and are susceptible to market manipulations. Some of the key principles include:

• Robust architecture that reduces/eliminates redundancies

• Adapts to the market without dependencies

• Internalises feedback loops into the core architecture

• Reduces information entropy to the minimum

• Freezes entropy after initialisation

MethLab Approach:

Drawing from the principles, MethLab set a few architecture invariants layed out below.

• Permission-less: No party/group should have the permission to approve/block any asset or user from the protocol. Users should be free to interact and use the protocol as they prefer. This means no admins/multi-sigs or even guardians in the core protocol.

• Readable Smart Contracts: means simple and clearly commented code that is easy to understand and audit.

• Abstraction: The architecture should be abstracted to incoporate only the the required information entropy. Read on Strategies

• Decentralised: The mechanism is as decentralised as the weakest link. The litmus test being whether a) The protocol is live and usable as long the underlying blockchain is producing blocks and b) Users can always withdraw funds anytime.

MethLab Approach: Architecture Tenets

The result of the approach is a set of core tenets that guide the design of MethLab DLV.

• Determinism: A protocol financial engineering principle that is characterized with defined payoff functions.

• Liquidation-free: A key architecture decision that eliminates liquidations and to enable non-liquidatable leverage.

• Modularity : The protocol is designed to be modular and easy to extend.

• Security : The protocol is designed to be secure and resistant to attacks.

• Usability : The protocol is designed to be usable and accessible to the widest audience.