Transaction Flows

Vault creation

Lender calls the deployVault function available in the RegistryV2.sol. Factory internally creates the DelegatedLenderVault and initializes it with a Strategy contract.

Loan Creation

The Borrower approves the DLV to use the collateral token. Then the Borrower calls the createLoan function on DLV. The DLV now calls the deployLoan function on the RegistryV2.sol to create a new loan.

Repay

To repay the borrow token, the Borrower approves the Loan.sol to use the borrow token. Borrower calls repay function on the LoanV2.sol. The Loan contract then transfers the collateral token back to the Borrower. The Loan contract calls the safeTransferFrom to transfer the borrowed assets back to the Vault.

Seize Collateral

If the Borrower doesn't repay the loan amount, the Lender can seize the collateral. The Lender calls the seizeCollateral function on the LoanV2.sol. The Loan contract transfers the collateral from the Loan to the DelegatedLenderVault.sol. The Lender can withdraw the collateral from the Vault anytime.