Architecture

System Overview

KiloLend's lending architecture is designed for scalability, security, and seamless user experience. The protocol consists of three interconnected layers that work together to deliver a comprehensive DeFi lending platform with AI assistance and social features.

KiloLend System Architecture

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Core Components

Frontend Layer

The user-facing interface that provides access to all protocol features through both LINE and web browsers.

LINE Mini Dapp (Mobile)

• Native LIFF SDK integration for mobile-first experience

• Social login via LINE account

• QR Code Functionality: Scan-to-send tokens using mobile camera

• Social Features: Invite system with reward multipliers

Web App (Desktop)

• Full-featured desktop interface

• External wallet support (Kaia, OKX, Google)

• Same account system as mobile version

Blockchain Layer - Smart Contracts

Battle-tested lending protocol built on Compound V2 with custom enhancements for stablecoin optimization.

Core Contracts:

• Comptroller: Central risk management and market coordination

• cToken Markets: Individual lending pools for each supported asset

• Interest Rate Models: Dynamic rate calculation based on utilization

• Oracle System: Multi-source price feeds with failover mechanisms

Security Features:

• Proven Compound V2 codebase with minimal modifications

• Real-time liquidation monitoring and execution

• Multi-oracle price validation

• Emergency pause functionality

Backend Layer - AWS Infrastructure

Scalable cloud infrastructure managing off-chain operations, AI services, and user points.

Infrastructure Components:

• AWS App Runner: Containerized services for KILO points, oracle bots, and AI engine

• Lambda Functions: Serverless APIs for Mini Dapp integration

• DynamoDB: NoSQL database for KILO points

• CloudWatch: Monitoring and alerting for system health

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Smart Contract Architecture

Comptroller - The Central Hub

The Comptroller acts as the protocol's brain, managing all cross-market operations and risk parameters.

Core Responsibilities:

• Market listing and configuration management

• Collateral factor enforcement

• Liquidation threshold monitoring

• User account liquidity calculations

• Risk model parameter updates

Key Functions:

// Check if user can borrow specified amount
function borrowAllowed(address cToken, address borrower, uint borrowAmount) external returns (uint)

// Calculate account liquidity for collateral requirements
function getAccountLiquidity(address account) external view returns (uint, uint, uint)

// Liquidation eligibility verification
function liquidateBorrowAllowed(address cTokenBorrowed, address cTokenCollateral, address liquidator, address borrower, uint repayAmount) external returns (uint)

cToken Markets - Individual Asset Pools

Each supported asset has its own cToken contract handling deposits, withdrawals, and interest calculations.

Market Types:

Stablecoin Markets (cUSDT)

• Low base rate with gradual slope

• Optimized for stable yield farming

• High collateral factor (85%)

Volatile Asset Markets (cBORA, cSIX, cMBX, cKAIA, sStKAIA)

• Steeper rate curves reflecting higher risk

• Dynamic utilization-based pricing

• Moderate collateral factors (70-75%)

Interest Rate Models

Three specialized rate models optimize borrowing costs across different asset classes:

Stablecoin Jump Rate Model

Base Rate: 0%
Multiplier: 4% (gradual slope)
Jump Multiplier: 109% (after 80% utilization)
Kink: 80%

Volatile Asset Rate Model

Base Rate: 2%
Multiplier: 20% (steeper slope)
Jump Multiplier: 300% (after 75% utilization)
Kink: 75%

Oracle System

Multi-layered price feed system ensuring accurate and reliable asset pricing.

Oracle Sources:

1. Pyth Network: Real-time price feeds with staleness checks

2. Orakl Network: Decentralized oracle solution for KAIA ecosystem

3. Internal Oracle Bot: Manual price updates from CoinMarketCap API

Failover Mechanism:

• Primary: Pyth Network (sub-second updates)

• Secondary: Orakl Network (backup validation)

• Tertiary: Internal bot (manual intervention)

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Backend Infrastructure

Bot Operations (AWS App Runner)

Containerized services running 24/7 to maintain protocol health and user experience.

Oracle Bot

• Function: Updates on-chain prices for all supported assets

• Frequency: Every 2 hours or on significant price deviations

• Sources: CoinMarketCap API with multiple data points

• Failover: Automatic retry logic with exponential backoff

Liquidation Bot

• Function: Monitors and executes underwater position liquidations

• Monitoring: Real-time scanning every 10 minutes

• Trigger: Health factor < 1.20 (liquidation threshold)

• Execution: Automated liquidation with optimal collateral seizure

KILO Points Bot

• Function: Tracks user activities and calculates daily point distributions

• Events Monitored: Mint, Redeem, Borrow, RepayBorrow

• Formula: (Base TVL × 50%) + (Net Contribution × 50%) × Invite Multiplier

• Distribution: Daily point allocation based on activity metrics

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This architecture enables KiloLend to deliver a secure, scalable, and user-friendly DeFi lending experience while maintaining the reliability and battle-tested security of the Compound V2 protocol foundation.