Architecture Overview
cSigma Institutional is the core onchain infrastructure of the cSigma Protocol, built using the Diamond Standard (ERC-2535) for modularity, upgradeability, and scalability. It acts as the unified backend connecting Edge Pools, csUSD Vaults, and csLYD Vaults with institutional borrowers and onchain asset managers, facilitating the secure deployment and management of capital across real-world and DeFi strategies.
At its core, Institution is composed of multiple facets (modules) that handle specific functions such as fund routing, vault accounting, borrower management, payments, and credit evaluation — all operating under a single onchain diamond proxy.
How It Works
Liquidity Aggregation Funds from Edge Pools (single-asset), csUSD and csLYD Vaults (multi-asset) flow into the Institution Diamond, where they are routed via the Fund Manager module.
Child Pool Deployment For every approved borrower or asset manager, the Institution Factory creates a dedicated Child Pool within the diamond. Each Child Pool represents an isolated credit facility with its own configuration — credit limits, repayment terms, and collateral rules.
AI-Driven Credit Rating Borrowers and asset managers are continuously monitored by the AI Credit Engine, which evaluates financial and onchain performance to assign dynamic credit ratings.
Fund Deployment & Strategy Execution
Institutional Borrowers access liquidity from their Child Pools to fund real-world asset (RWA) or onchain yield strategies.
Monitoring, Repayment & Yield Reflection Borrowers and asset managers repay principal and yield directly into their Child Pools. The Fund Manager aggregates repayments and redistributes them to the originating vaults (Edge, csUSD, csLYD). Vaults automatically update share values, reflecting user yield in real time.
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