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The protection_engine is the central coordinator of the CoverFi ecosystem. It interfaces with users and manages the lifecycle of stablecoin loss protection positions.

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Core Responsibilities

  • Position Lifecycle: Opens, claims, revokes, and expires positions.
  • Math & Calculations: Computes protection fees and max payout capacities based on configured parameters.
  • Cross-Contract Coordination: Triggers transfers across the protected_balance_vault, premium_vault, and reserve_vault.
  • Oracle Verification: Reads from the oracle_adapter during a claim to determine if the trigger threshold has been breached.

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Key Functions

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create_position()

Opens a new protection position, calculates fees, and moves funds from the user to the respective vaults.

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claim_position()

Checks the current oracle price against the position’s trigger price. If the condition is met, it triggers a payout from the reserve vault to the user.

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expire_position()

Returns the protected principal back to the user if the duration ends without a price trigger.

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revoke_position()

Allows early cancellation of a position under specific protocol-defined conditions.