Architecture

The Unstable Protocol is designed with a flexible architecture to support different collateral types and provide adaptability for future upgrades. It organizes protocol functions into logical components with clear responsibilities, creating a cohesive system.

graph TD
    A[Position Management] <--> B[Interest & Fees]
    A <--> C[Price Oracle]
    A <--> D[Liquidation System]
    A <--> E[Redemption System]
    F[Emergency Controls] --> A
    F --> B
    F --> D
    F --> E
    C --> D
    C --> E

Core Components

• UnstableConfigurator: Central configuration contract that manages system parameters

• Vaults (BaseVault and implementations): Manage collateral and debt positions

• nUSD: The protocol's USD-pegged stablecoin

• Oracles: Provide price data for collateral assets

Component Implementation

Each functional component in the Unstable Protocol is implemented through specific contracts:

Component	Primary Contracts	Integration Purpose
Position Management	BaseVault, StakedEthVault, etc.	Manage user positions and collateral
Interest and Fees	UnstableConfigurator	Handle origination fees
Price Oracle	Chainlink, zkOracle	Provide price data
Liquidation System	BaseVault (liquidation methods)	Manage position health
Redemption System	BaseVault (redemption methods)	Convert nUSD to collateral
Emergency Controls	UnstableConfigurator	Emergency controls and pauses

Vault Types

The protocol supports multiple vault types for different collateral assets:

• ETH-based vaults: For scETH and other yield-bearing ETH wrappers

• Sonic-based vaults: For staked S-based collateral

• Stablecoin vaults: For USD-pegged assets

• Token vaults: For other tokens with reliable price feeds

Core Tokens

• nUSD: The protocol's USD-pegged stablecoin

• Collateral tokens: Various yield-bearing assets accepted by vaults