Technical Architecture & Lifecycle
Explore the multi-layer protocol architecture, step-by-step smart contract lifecycle, and token verification hooks driving the PARC-3643 protocol.
The Multi-Layer System Architecture
PARC-3643 separates regulated asset rules from public credit markets, routing actions across four specialized layers:
AAVE, Morpho Blue & Yield Pools
On Aave, capital providers deposit yield-bearing assets and delegate their unused borrowing capacity to PARC. RWA holders encumber their assets in a PARC vault and draw against that delegated credit — accessing USDC without their collateral ever entering a permissionless protocol. On Morpho Blue, PARC establishes a dedicated isolated lending market, pairing RWA collateral directly against a USDC pool under PARC's own risk parameters.
PARCRegistry & SDA Adapter
The registry tracks soft locks, coordinates bearer instrument mints, and directs the Settlement Disbursement Adapter (SDA) during default split-payouts.
Compliance Hook & ONCHAINID
On-chain KYC databases (`IdentityRegistry`) and routers (`ModularCompliance`). `PARCComplianceModule` plugs directly into this hook to block unauthorized transfers.
ERC-3643 Restricted Security Token
The underlying restricted asset (T-bills, real estate, private credit pools). Remains locked inside the owner's KYC-verified wallet.
Technical Lifecycle Flow
Click through the tabs below to follow the complete step-by-step lifecycle from origination to liquidation settlement.
Creation & Soft-Lock (Origination)
The Borrower locks his ERC-3643 tokens in-place in his own wallet. The protocol verifies his registry status and deploys a standard bearer instrument against it.
- 1The Borrower calls PARCRegistry.create(token, amount, exerciseData) to initiate.
- 2The registry locks the RWA in-place by writing to PARCComplianceModule.encumberTokens.
- 3The compliance hook sets encumberedBalance[Borrower] = amount in its storage map.
- 4The hook blocks any outgoing transfers that would drop the Borrower's wallet balance below this value.
- 5A unique PARCToken is deployed, and exactly 1.0 proxy claims are minted to the Borrower's wallet.
Smart Contract Hook Interface
The `PARCComplianceModule` enforces the soft lock by checking every transfer. The module verifies that the Borrower retains a token balance that is equal to or greater than his encumbered threshold.
// SPDX-License-Identifier: MIT
function moduleCheck(
address _from,
address _to,
uint256 _value,
address _compliance
) external view returns (bool) {
if (_from == address(0)) return true;
uint256 encumbered = parcRegistry.encumberedBalance(token, _from);
if (encumbered == 0) return true;
uint256 balance = IERC20(token).balanceOf(_from);
return balance >= _value + encumbered;
}Technical Safeguards & Oracles
MSCI & Chainlink Oracles
The `MorphoBlueOracleAdapter` pulls price data from push-oracles (like Chainlink or MSCI indexers) to compute the collateral health ratio in real time.
Oracle Staleness Fallback
If no price push has occurred within a 24-hour window, the oracle triggers a circuit breaker, falling back to a pre-defined `floorPrice` to prevent collateral overvaluation.
Voluntary Reclaim Mechanism
If the Borrower repays his USDC loan early, Morpho releases the proxy bearer token to him. The Borrower calls `reclaim()`, which burns the claim token and releases the soft lock.