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High Level Overview
At the heart of the Florence Finance protocol lies the Loan Vault. The Loan Vault is based on an existing DeFi primitive (the recently finalized EIP-4626 standard) that has been augmented to suit our stated purpose. The Loan Vault is the ledger of reference for the funding that takes place on-chain whilst simultaneously acting as the on-chain manifestation of the real-world lending activity that Florence Finance is engaged in. In that manner, the Loan Vault allows for fractionalized funding of the underlying lending activity while keeping everything hyper-transparent and continuously auditable.
A real-world borrower (Delegate) can create a funding request in the Loan Vault to match real-world loan agreements that it intends to enter into and fund. Such funding requests can be funded by Whitelisted (primary) funders with stablecoins in return for which they receive Loan Vault (receipt) tokens and an equal amount of FLR tokens are created in the Vault.
Loan Vault tokens can be exchanged for FLR tokens in the Loan Vault (at the prevailing exchange rate) which in turn can be used to participate in other Loan Vaults by exchanging them for other Loan Vault tokens, staking them in the FLR Staking pool to earn FFM rewards or exiting the platform by exchanging them back to stablecoins through the treasury function or the third part liquidity pool.