Protocol-Native Lending

Upgraded Flexi Loan Module

CosmBank introduces the Flexi Loan Module, a protocol-native, overcollateralized lending system designed to close the loop between Protocol-Owned Liquidity (POL) and internal capital utilization.

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DAO-Governed Parameters

• Collateral Ratio: Dynamically adjustable by DAO governance (initially set at 120%), supporting assets such as CSM, BNB, and BUSD as valid collateral types.

• Dynamic Interest Rate Model: Lending rates are algorithmically adjusted based on a utilization curve, encouraging users to supply capital when liquidity is low and discouraging overborrowing when utilization is high.

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Liquidity Circuit Breaker

To protect the protocol during volatility spikes, Flexi Loan integrates a circuit breaker:

• Trigger Condition: When CSM price fluctuates by more than 15% within 24 hours, the system enters protection mode.

• Actions Executed:

  • New Loans Halted: Temporarily suspend new borrowing.

  • Repayments Allowed: Borrowers can continue repaying to reduce exposure.

  • Treasury Stabilization: Protocol deploys stablecoins into DEX markets to execute reverse trades, buying back CSM to stabilize price.

The Flexi Loan module delivers flexible liquidity access without compromising protocol solvency — enabling dynamic lending with built-in safeguards.