Loan lifecycle
The loan lifecycle in SLAI follows a clear and secure on-chain process. Every lending transaction is governed by smart contracts, priced in real-time from on-chain liquidity, and protected by liquidation logic. Below is a detailed breakdown of each stage of a typical SLAI loan.
1. 🔐 Locking Collateral
The user begins by locking a supported ERC-20 token into the SLAI protocol.
The token must be approved by oscAI.
The amount is recorded and held in the
CollateralVault.The token price is calculated using its WETH trading pair.
Example: User locks 100,000 $PEPE tokens. SLAI calculates the on-chain WETH value and confirms total USD worth.
2. 📊 Real-Time Price & Risk Assessment
SLAI uses the current reserves from Uniswap-style WETH pools to calculate the token's price.
Price = (WETH reserves / token reserves)
No oracles — price is computed fully on-chain.
Risk score based on:
Volatility history
Depth of liquidity
Historical price swings
Result: SLAI determines the max LTV (Loan-to-Value), up to 50%.
3. 💸 ETH Loan Disbursement
Based on the collateral's value and risk rating, SLAI issues a loan in ETH directly to the user.
Borrowed ETH = token value × LTV
Sent to user wallet instantly
Loan is recorded with timestamp
Example: Collateral worth $2,000 → SLAI approves 30% LTV → user receives $600 in ETH
4. ⏳ Loan Period
There is no fixed repayment deadline. However, the longer a loan is open, the higher the chance of price fluctuation and liquidation.
Repayment can happen anytime
User retains full view of loan status via the SLAI Web App or Telegram Bot
5. 🔁 Repayment
To unlock the collateral, the user must repay:
100% of borrowed ETH
5% flat interest
OR 0% if user has staked ≥50,000 SLAI tokens
Upon successful repayment:
Tokens are released back to the user
Loan status is closed
6. 🔥 Liquidation Logic
If the token's value drops by 40% or more:
SLAI triggers auto-liquidation
Tokens are sold on-chain to recover the loaned ETH
Protects ETH liquidity and prevents protocol insolvency
Liquidation can be triggered by:
SLAI keeper bots
Manual execution from the
LiquidationModule
🧠 Lifecycle Summary
Lock Collateral
Deposit approved token
Price Check
WETH-based on-chain pricing
Risk & LTV
Determine safe loan % based on volatility/liquidity
Loan Issued
ETH sent directly to user
Repay or Liquidate
Repay with 5% interest or get liquidated if price drops
Every SLAI loan is built to be secure, fast, and fully transparent — optimized for on-chain traders who demand efficiency and control.
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