Pool Factory

In the following sections we elaborate the PoolFactory.sol specification.


Pool Factory is used to create pools that allows a borrower to borrow from a group of lenders. Pool Factory stores the various global parameters to manage pools. Borrowers need to be verified to be able to create a pool.




  • by deploying the contract
  • gaining ownership from previous owner


  • Can transfer ownership to another admin
  • Can update logic contract implementation addresses
  • Can update thresholds for parameters



  • Users verified by one of the supported Verifiers


  • Can call the createPool() to create new pools for loan requests


Create Pool

A verified user can create a lending pool to borrow from a group of lenders. The following function is used to create a pool.


function createPool(
uint256 _poolSize,
uint256 _borrowRate,
address _borrowToken,
address _collateralToken,
uint256 _collateralRatio,
uint256 _volatilityThreshold,
uint256 _repaymentInterval,
uint256 _noOfRepaymentIntervals,
address _poolSavingsStrategy,
uint256 _collateralAmount,
bool _transferFromSavingsAccount,
bytes32 _salt,
address _verifier,
address _lenderVerifier


  • msg.sender should approve collateral tokens to the pool to be created, by pre-generating the pool address.


  • msg.sender: verified users only
  • msg.value: Only if collateralToken is address(0) (Ether) should be == _collateralAmount
  • Note: All the parameters might be subject to range specified by admin. We threshold the following parameters:
    • _collateralRatio
      [collateralRatioLimit.min, collateralRatioLimit.max]
    • _borrowRate
      [borrowRateLimit.min, borrowRateLimit.max]
    • _noOfRepaymentIntervals
      [noOfRepaymentIntervalsLimit.min, noOfRepaymentIntervalsLimit.max]
    • _repaymentInterval
      [repaymentIntervalLimit.min, repaymentIntervalLimit.max]
    These ranges have been defined purely to better manage risks, especially during the early stages. This thresholding can be removed at a later stage.


  • _poolSize: loan amount requested
  • _borrowRate: Interest rate per annum for borrowing. The interest rate fraction should be multiplied by 10**30. e.g. interest rate of 10% should be converted to 10**29
  • _borrowToken: Borrow Asset requested. If Ether, address(0) to be used
  • _collateralToken: Asset posted as collateral for the loan. If Ether, address(0) to be used
  • _collateralRatio: Limit on the ratio of collateral to the debt (principal + interest), which if falls below a threshold, results in liquidation (Refer to Broken link). The _collateralRatio should be multiplied by 10**30
  • _repaymentInterval: Interval in seconds after which 1 instalment of interest repayment for loan should be repaid
  • _noOfRepaymentIntervals: Number of instalments in which interest of loan will be repaid
  • _poolSavingsStrategy: Whitelisted strategy in which the collateral tokens should be invested in Savings Account
  • _collateralAmount: Amount of asset to be deposited as collateral for the loan
  • _transferFromSavingsAccount: Flag to determine if collateral will be added from the Savings Account or directly transferred from the borrower's wallet
  • _salt: random and unique initial seed used in pre-generation of the pool address
  • _verifier: Verifier that the borrower chooses to represent their identity for this pool. A modifer (onlyBorrower()) is passed this parameter to check whether they've actually been verified by _verifier or not
  • _lenderVerifier: Verifier that lenders that wish to participate in the pool need to be verified by