Smart Contract Architecture

The CosmBank Flexi Loan system is powered by a modular, upgradeable smart contract architecture — ensuring transparency, risk isolation, and gas efficiency.

Though the external product is branded as Flexi Loan, the core contracts maintain the Cooler naming convention for consistency with the protocol’s contract-level structure.

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1. Cooler.sol – Borrower-Specific Loan Contract

• Each borrower receives a dedicated Cooler contract instance.

• Responsibilities include:

  • Custody of veCSM collateral

  • Tracking loan state (issued, repaid, defaulted)

  • Executing post-maturity logic: reclaiming collateral or releasing repayment

By separating each borrower’s obligations, Cooler.sol ensures that individual defaults cannot cascade into systemic risk.

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2. Clearinghouse.sol – Protocol Treasury Gateway

• Serves as the central bridge between governance logic and Treasury capital.

• Key functions:

  • Approving and issuing loans based on governance parameters

  • Monitoring outstanding loan balances and interest accrual

  • Redirecting idle funds into external stablecoin strategies (e.g., Venus Protocol) to maximize idle capital returns

Clearinghouse acts as a decentralized credit committee + capital allocator — fully on-chain and auditable.

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3. CoolerFactory.sol – Deployment & Registry Layer

• Factory contract for creating new Cooler contracts per borrower.

• Functions include:

  • On-demand deployment of new borrower instances using clone architecture (to reduce gas costs)

  • Maintaining a registry of all active loans for global view and governance oversight

CoolerFactory enables scalable lending with minimal gas overhead — powering the infrastructure behind CosmBank's Flexi Loan system.