Overview

Overview

Module 1 is Parthenon Fi's foundational lending product — automated, overcollateralized lending for digital assets with transparent collateral management. It serves as the protocol's entry point, providing safe, custody-native lending infrastructure that institutions can deploy immediately while Module 2's permissioned markets are scaled.

How It Works

Module 1 operates as a pooled lending model where lenders deposit assets into custody-backed vaults and borrowers draw against deposited collateral. All collateral is held at qualified custodians — not in smart contracts — and LTV is monitored continuously.

For Borrowers

• Deposit collateral (BTC, ETH, or approved RWAs) with a qualified custodian

• Borrow against that collateral at a fixed rate

• Collateral remains at the custodian — no transfer to protocol contracts

• Repay at maturity or early (no prepayment penalty unless specified)

• LTV monitored continuously with defined margin call and liquidation thresholds

For Lenders

• Deposit lending assets (USDC or approved stablecoins) into custody-backed vaults

• Earn fixed-rate yield on deposited assets

• Collateral backing is verifiable and custodian-held

• Withdraw according to vault parameters (subject to utilization)

• All positions governed by the Multi-Party GMSLA

Collateral Management

Parameter	Default Value	Description
Initial LTV	50% (crypto) / 65% (RWA)	Required collateral at origination
Margin Call LTV	70%	Triggers margin call notice
Liquidation LTV	85%	Custodian authorized to liquidate
Cure Period	24–72 hours	Time to restore LTV after margin call

Collateral health is monitored via dual oracle feeds — Chainlink price feeds and exchange aggregator TWAP — providing manipulation resistance and redundancy. The TICS system maintains independent LTV calculations as a secondary verification layer.

Supported Collateral

Module 1 supports collateral types that meet custodian acceptance criteria:

Digital Assets: BTC, ETH, and select Layer 1/Layer 2 tokens on the custodian's accepted asset list.

Stablecoins: USDC (primary settlement asset). Additional stablecoins subject to CBUAE licensing requirements for UAE counterparties.

Tokenized RWAs (coming): US Treasury tokens (DTCC-authorized on Canton), tokenized real estate, and commodity-backed tokens via DMCC FinX integration.

Vault Structure

Module 1 vaults are organized by collateral type and risk profile. Each vault defines:

• Accepted collateral assets and LTV parameters

• Fixed lending rate and tenor options

• Minimum deposit requirements

• Withdrawal mechanics and utilization limits

• Custodian assignment (which qualified custodian holds the vault's collateral)

Vault parameters are set at creation and locked — no unilateral adjustments by borrower, protocol, or governance. Rate certainty is a core design principle.