Lending Protocols (Mechanics) — Why this matters

Solvency is UXHealthy lending markets are invisible; unhealthy ones liquidate honest users or freeze liquidity. Math + parameters decide who survives volatility.

Cryptography is about how to maintain control over information.

— Shafi Goldwasser

Risk never sleeps; it just waits for the wrong assumption.

— Ops mantra

Parameters are productCollateral factors, caps, and close factors are product decisions. Codify them clearly so governance and risk teams can reason about changes.

Oracles are a fault lineStale or manipulated prices liquidate good borrowers or leave bad debt. You must check freshness, bounds, and feeds per asset.