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Benefits of using EVC

The EVC contains the functionality required to build flexible products, both for EOAs and smart contracts. It provides a common base ecosystem and reduces complexity in the core lending/borrowing contracts, allowing them to focus on their differentiating factors such as pricing and risk management.

The EVC helps create the network effect by offering access to unified liquidity and interoperability, allowing protocols to accept deposits in other vaults as collateral. It does not enforce specific properties about the assets and provides a standardized approach to account liquidity checks and vault constraints enforcement. Lastly, amongst others, the EVC supports batch operations, sub-accounts, checks deferrals, automations, gasless transactions, and provides an interface for simulating operations.

Here's a comprehensive list of the EVC benefits and features:

  • Unified liquidity and interoperability: Participating protocols can accept deposits in other vaults as collateral suitable for their vaults, providing convenience for users who no longer need to move their collateral assets from one protocol to another.
  • Flexibility in asset properties: The EVC does not enforce specific properties about the assets used as collateral or liabilities, allowing users to create lending products backed by, not only traditional ERC-20 assets, but also irregular asset classes, such as NFTs, Real World Assets (RWAs), uncollateralised IOUs, or synthetics.
  • Standardized approach to account liquidity checks and vault global constraints enforcement: The EVC allows for deferral of the liquidity checks and vault status checks, preventing transient violations from causing a failure. The EVC exposes an interface which abstracts management of the checks away from the vault.
  • Batching: Multiple operations affecting multiple vaults and external smart contracts can be performed within a single batch operation. This is more convenient for UI users, more gas efficient, and allows deferring liquidity checks until the end of the batch.
  • Sub-accounts: A feature that allows users to create multiple isolated positions within their single owner account, and easily rebalance collateral/liabilities between them without the need for approvals and without requiring any special logic to be implemented by the vaults.
  • Operators: Users can attach external contracts to act on behalf of a sub-account. This is a generalisation of the token approval system and will unlock powerful functionality, even for EOAs. For example, intents support, stop-loss/take-profit/trailing-stop/etc modifiers can be added to positions, or entire layered position managers can be built on top.
  • Gasless transactions (meta-transactions): They can be supported out of the box for both EOAs and contract wallets.
  • Simulations: The EVC exposes the optimal interface for simulating the effects of a set of operations and pre-visualising their effects in a UI for all EVC users.
  • A common language for liquidations: Vaults can implement a core liquidation interface that will allow them to rely on an existing network of liquidators to keep their depositors safe.