Spiral Stake operates through a modular architecture built on three core components that work together to deliver leveraged stablecoin yields. The FlashLeverageCore contract serves as the protocol’s engine, managing individual user positions through isolated **UserProxy **contract while integrating with Morpho lending markets for optimal borrowing rates. The FlashLeverage wrapper contract provides the user-facing interface, handling token swaps via Pendle and managing the complete position lifecycle from creation to closure. User Proxy Isolation ensures each leveraged position operates independently through minimal proxy contracts cloned for gas efficiency. This architecture prevents cross-contamination between positions while maintaining capital efficiency. The SwapAggregator and MarketPositionManager modules handle automated token routing and position management across multiple Morpho pools, continuously optimizing for the best available rates. The protocol integrates with Pendle’s PT ecosystem for fixed yield capture and Morpho’s lending infrastructure for competitive borrowing rates. Built-in safety mechanisms including liquidation buffers, slippage protection, and LTV validation ensure positions remain secure throughout their lifecycle.

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Core Contract Architecture

Our current system consists of two primary smart contracts working in tandem: FlashLeverageCore The core engine that powers our leveraged yield strategies:
  • Flash Loan Orchestration: Executes complex multi-step leverage operations in a single transaction
  • Dynamic Loan Calculation: Automatically calculates optimal loan amounts based on collateral value and LTV ratios
  • Risk Management: Implements liquidation buffer (i_liquidationBuffer) and slippage protection (i_slippageBuffer) to protect positions
  • Position State Management: Tracks collateral amounts and borrowed shares for each user proxy through isolated CoreLeveragePosition structs
  • Oracle Integration: Uses Morpho’s IOracle for real-time price feeds and accurate position valuation
Key Functions:
  • leverage() - Creates/modifies leveraged positions via flashloan mechanics
  • unleverage() - Closes positions and returns profits to users
  • calcLeverageFlashLoan() - Determines optimal borrowing amounts based on desired LTV
  • getMaxLtv() - Returns safe LTV ratios with built-in liquidation protection
FlashLeverage (User Interface) The user-facing contract that simplifies interaction and manages position registry: Primary Role: Acts as a comprehensive wrapper that handles token swaps, position tracking, and user experience optimization. Advanced Features:
  • Automatic Token Swapping: Integrates with Pendle router for seamless token-to-PT conversions
  • Position Registry: Maintains complete user position history with LeveragePosition structs
  • Yield Fee Management: Collects 10% performance fee on profits through treasury system
  • Gas Efficiency: Combines multiple operations into single transactions
Key Functions:
  • swapAndLeverage() - One-click leveraging with automatic token conversion
  • leverage() - Direct leveraging with prepared collateral
  • unleverage() - Position closure with profit distribution
  • getUserLeveragePositions() - Complete position portfolio querying