Matching Engine

P2P positions on Evoq always have 100% utilization, meaning the supply exactly matches the borrow demand. This contrasts with other lending protocols, which often have more liquidity than borrow demand, leading to lower utilization and creating an APY spread.

There will almost always be an imbalance between supply and borrow. For instance, if $2,000 is supplied but only $1,500 is borrowed, the protocol selects $1,500 of suppliers to enjoy the P2P APY, while the remaining $500 is forwarded to the underlying protocol. This matching is managed by a module called the matching engine, which focuses on:

• Economic Efficiency: Maximizing matched volumes.

• Gas efficiency: Minimizing gas usage and avoiding dust problems.

• Simplicity: Allowing passive users or contracts to benefit from Evoq by simply supplying or borrowing.

• Fairness: Ensuring as much liquidity as possible benefits from Evoq, regardless of the user.