Mechanism

Overall Flow Summary

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• Borrower: Deposits collateral and borrows zero-interest EUR stablecoins.

• Lender: Deposits EUR stablecoins to provide liquidity and earn yield.

• VaultManager: Manages collateral, rebalances portfolios, handles staking, and distributes yield.

• ElizaOS + Chainlink Automation: Executes automated strategies and rebalances based on real-time data.

Component Breakdown

Borrower / Lender Interface

• Borrower can deposit, borrow, repay, spotRepay, and autoRepay.

• Lender deposits EUR stablecoins (colEURC) to supply liquidity.

LendingPool

• Core contract that handles lending and borrowing.

• PoolConfigurator provides admin-level configurations for the pool.

Collateral Vaults

• Separate vaults for different collateral assets:

  • stETHVault: For staked ETH from Lido and similar sources.

  • ETHVault: For native ETH.

  • LINKVault: For Chainlink tokens.

• All vaults mint colTokens (e.g., colstETH, colETH, colLINK).

• Collateral tokens are non-rebase ERC20 for stable asset tracking.

VaultManager

• Handles DeFi registry + direct rebalancing.

• Interfaces with vaults to auto-distribute and auto-compound yields.

• Interacts with external protocols:

  • Lido, RocketPool, Etherfi: For ETH staking.

  • Morpho / Aave: For lending strategies.

  • LINK staking: For Chainlink-based yield.

ElizaOS

The strategic engine of the Zeur protocol

• Key features:

  1. Position Management: Defines target allocations, tracks vault balances and withdrawal queues.

  2. Data Fetching: Gathers APRs, gas prices, and optionally cross-chain liquidity data.

  3. Yield / Market Analytics: Tracks performance, risk, and applies auto-compounding.

  4. Optimization Engine: Simulates scenarios, calculates best allocations, and sets thresholds.

  5. Execution / Automation: Executes rebalance transactions based on strategy.

  6. Monitoring / Logging: Logs activity and status.

Chainlink Integration

• Price Feeds: Real-time prices for assets like ETH, LINK, stETH.

• Automation: Automatically triggers conditions such as auto-repay or liquidation.

• Staking: Integrated with LINKVault for staking functionality.

Euro Stablecoin Structure

• colEURC: ERC4626-based collateralized EUR stablecoins.

• debEURC: Debt tokens representing borrowed amounts.

• Total assets:

  totalAssets = balanceOf(colEURC) + debEURC.totalSupply

DEX Integration (Uniswap, Curve, Balancer, etc.)

• Enables:

  • Instant withdrawal using DEX (check for rate/slippage).

  • Large withdrawals and LINK withdrawals to queue.

  • spotRepay / autoRepay for debt management.

  • Simple liquidation system.

Expansion Ideas (from Notes section)

• VaultManager for EUR stablecoins → Proposed to optimize unused EUR in protocols like Morpho/Aave. Needs careful implementation to balance yield and liquidity.

Technical Summary

Item	Description
Collateral Assets	ETH, stETH, LINK, etc.
colTokens	colETH, colstETH, etc. (non-rebase ERC20)
Vault Type	ERC4626, isolated strategy vaults
Automation Engine	ElizaOS + Chainlink Automation
Yield Optimization	Auto-staking, auto-compound, DeFi yield farming
Risk Management	Spot repay, auto repay, liquidation
DEX Support	Uniswap, Curve, Balancer
Regulation Goal	MiCA-compliant, EUR-focused for EU market