How We Built a DeFi Lending Protocol on Ethereum

The Problem

The client needed to build a permissionless lending protocol with variable interest rates that could compete with existing giants like Aave and Compound, but with a unique liquidation engine optimized for volatile long-tail assets.

The Solution

Chainmagic Studio designed the smart contract architecture, adapting a battle-tested interest rate model while building a custom liquidation engine that prevents cascading liquidations during flash crashes. The architecture was modular to allow for future asset additions.