Operational Flow

The CosmBank Flexi Loan process is designed to be simple, predictable, and entirely on-chain.

The full lifecycle of a loan involves three core stages:

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1. Loan Request

• The borrower pledges veCSM as collateral.

• Submits a request for:

  • Loan amount (USDT or USDC)

  • Fixed term (e.g., 30 / 60 / 90 days)

• A dedicated Cooler.sol contract is deployed to manage the loan.

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2. Treasury-Funded Disbursement

• The Clearinghouse.sol contract verifies that:

  • The collateral meets the required overcollateralization ratio (e.g., 120%)

  • The requested amount complies with protocol limits

• If approved:

  • The borrower immediately receives USDT/USDC from the CosmBank Treasury

  • The loan is locked with fixed terms and interest

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3. Maturity Resolution

• If repaid on time:

  • The borrower returns the loan principal + interest

  • The veCSM collateral is fully released

• If defaulted:

  • The protocol claims the borrower’s veCSM

  • Collateral is reabsorbed into the Treasury to offset the debt

The Flexi Loan flow ensures that users always know their cost, risk, and maturity date — without fear of surprise liquidations or variable interest spikes.