Core Concepts
The mechanics behind Floe's credit protocol — intents, isolated loans, and the matching engine.
TL;DR. A borrower (human or agent) signs an intent. A solver matches it with a lender's intent. The result is an isolated, fixed-rate loan with smart-contract-enforced repayment. Fixed rate. Fixed term. Per-loan isolated escrow. Gas-free for agents.
1. Intents
An intent is a signed message expressing what you want to achieve, not how. Floe matches intents into loans.
Lend intent
A lender's offer to provide capital:
Amount — USDC to lend
Min interest rate — minimum APR accepted
Max LTV — liquidation threshold
Duration — max loan length (supports min/max range)
Expiry — when the offer becomes void
Borrow intent
A borrower's request:
Amount — USDC requested as working capital
Collateral — USDC deposit (for the USDC/USDC market), or WETH/cbBTC for volatile markets
Max interest rate — max APR willing to pay
Min LTV — target loan-to-value (up to 95% for USDC/USDC)
Duration — desired term (supports min/max range)
Matching rules
Two intents match when:
Same market (e.g., USDC/USDC or USDC/WETH)
Rate compatible — borrower's max rate >= lender's min rate
LTV gap met — for volatile markets: borrower's LTV + 8% <= lender's max LTV; for USDC/USDC: only 0.5% gap required
Duration compatible — overlap exists between the borrower's and lender's ranges
Both intents are unexpired
Matching can be manual (browse the order book in-app) or automatic (solver bots).
2. Solvers (matchers)
Solvers are off-chain bots that:
Monitor open intents
Find compatible pairs
Submit match transactions onchain
Earn a commission (set by intent creators, typically 0.1-2%)
Solving is permissionless. Anyone can run a matcher — see Run a Solver Bot.
3. Isolated loans
Each loan is isolated with its own:
Principal
Collateral escrow
Fixed interest rate
Liquidation threshold
Duration
Unlike pool-based protocols, bad debt does not spread between loans, markets, or across the protocol.
4. Markets
A market is a (loan token, collateral token) pair. Currently live:
USDC/USDC
USDC
USDC
95%
Interest accrual only
WETH/USDC
WETH
USDC
70%
Price volatility
cbBTC/USDC
cbBTC
USDC
70%
Price volatility
Same-token markets (USDC/USDC)
The USDC/USDC market is designed for secured working capital. Because the collateral and loan are the same asset:
The oracle returns a fixed 1:1 ratio (hardcoded, no Chainlink dependency)
Price-driven liquidation is impossible
LTV can be much higher (up to 99.5% protocol cap, 95% recommended)
The LTV gap is reduced to 0.5% (vs. 8% for volatile markets)
No circuit breaker impact — the market is immune to oracle failures
The only path to liquidation is if accrued interest pushes the debt above the liquidation threshold. At 95% origination LTV with typical rates, this takes months.
Volatile markets (WETH/USDC, cbBTC/USDC)
Traditional over-collateralized lending. Post ETH or BTC, borrow USDC at lower LTV (30-70%). Requires monitoring collateral health.
5. Loan-to-Value (LTV)
For USDC/USDC
95% origination
Healthy — normal operating range
95.5% liquidation
Only reachable via interest accrual over long periods
For volatile markets
Safe
Loan LTV below liquidation LTV (>8% gap)
Healthy
Buffer
Within 8% of liquidation LTV
Caution
Danger
Within 3% of liquidation
High risk
Liquidation
At or above max LTV
Liquidatable
6. Oracles
USDC/USDC markets
No external oracle. The protocol hardcodes a 1:1 ratio for same-token pairs. No price feed to go stale, no circuit breaker to trip.
Volatile markets
Dual-oracle system:
Chainlink (primary) — decentralized price feeds
Pyth (fallback) — high-frequency updates
Circuit breaker
The protocol auto-pauses volatile markets when:
Price is stale (>1 hour old)
Price deviates >15%
L2 sequencer is down
Price returns zero
USDC/USDC markets are unaffected by circuit breaker events.
7. Grace period & minimum interest
Grace period. When a loan reaches expiry, the borrower has additional time to repay before the loan becomes liquidatable. Interest continues to accrue.
Minimum interest. Every loan enforces a floor on total interest paid, regardless of how short the term — preventing dust loans from being economically meaningless.
8. Duration ranges
Intents support min and max duration instead of a fixed value. A lender offering "30 to 90 days" matches a borrower requesting "14 to 60 days" — the matcher picks a compatible duration in the overlap. This significantly improves match rates.
9. Credit scores
Floe surfaces onchain credit scores via Cred Protocol on the human dashboard. Today these are informational only and don't gate access. Over time, strong credit history will unlock higher LTV and better rates.
10. Agent interfaces
AgentKit — TypeScript + Python SDKs with 45 actions
MCP server — same actions exposed to any Claude/OpenAI/Cursor-compatible agent
Credit REST API — HTTP endpoints for any language
LendrBot — natural-language assistant for humans
13. LendrBot & agent interfaces
LendrBot — natural-language assistant for humans. "Borrow 5000 USDC for 30 days at max 6% APR."
MCP server — same actions exposed to any Claude/OpenAI/Cursor-compatible agent.
AgentKit — TS + Python SDKs with 45 actions.
→ LendrBot · MCP Server · AgentKit
14. Markets
A market is a (loan token, collateral token) pair. Currently live:
USDC/USDC
USDC
USDC
95%
Interest accrual only
USDC/WETH
USDC
WETH
70%
Price volatility
USDC/cbBTC
USDC
cbBTC
70%
Price volatility
USDT/WETH
USDT
WETH
70%
Price volatility
USDT/cbBTC
USDT
cbBTC
70%
Price volatility
USDC/USDC (same-token market): The protocol hardcodes a 1:1 oracle ratio — no external price feed, no circuit breaker impact. LTV gap reduced to 0.5% (vs 8% for volatile markets). Designed for secured working capital lines.
New markets are added by governance and have their own default rate, default LTV, protocol fee, and liquidation incentive.
Summary
Intent
Signed message expressing desired outcome
Solver
Bot matching compatible intents
Isolated loan
Per-match escrow with own terms
Same-token market
USDC/USDC — no price risk, 95% LTV
LTV
Loan / collateral value ratio
Oracle
Hardcoded 1:1 for same-token; Chainlink + Pyth for volatile
Grace period
Buffer time after expiry before liquidation
Min interest
Floor interest amount per loan
Duration range
Min/max for flexible matching
Credit history
On-chain repayment record, unlocks higher LTV over time
Next
Credit for Agents — secured working capital for AI agents
How to Borrow — step-by-step
How to Lend — earn yield as a lender
Architecture — contracts and flow
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