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Illuminate Principal Token (ERC5095)

User Flow

The Illuminate Principal Token (iPT) is the meta-token of the Illuminate ecosystem.
It is a principal token that comprises of various integrated protocol principal tokens and is to be redeemed upon the maturity of an Illuminate market.
Users may obtain the Illuminate Principal Token by purchasing active PTs within the market via lend , or by externally acquiring integrated PTs and minting Illuminate Principal Tokens via mint calls in the Lender contract.
Upon maturity, users can call redeem on the Redeemer contract to obtain their underlying. Assuming the positions were repaid in full across all protocols, the user will receive underlying equivalent to their 1:1 balance of Illuminate Principal Tokens.

Motivation

The purpose of the iPT is to create a meta-principal token for the various fixed-rate lending protocols in the DeFi ecosystem. In doing so, it unifies the market along a single maturity and underlying for a given market. This has the benefit of consolidating previously fragmented liquidity, and opening up new arbitrage opportunities within the fixed-rate lending market.
In enabling these arbitrage opportunities, iPTs become the implicit best rate-of-return for a given duration of loans in a market. This benefits users by greatly simplifying the process of lending at fixed rates.

Data Organization

Each iPT contains the following references to facilitate its role within the Illuminate protocol:
  • pool: This refers to the Yield Space Pool through which the iPT can be traded for the underlying.
  • maturity: This refers to the timestamp at which the lending operations cease and redemptions begin for the iPT.
  • underlying: The asset being lent out, and may be used to purchase the iPT.
  • marketPlace, lender, redeemer: These refer to the Illuminate protocol's contract federation.