Skip to content

Prongs

A prong is a capped, conditional claim on N tokens in a vault. It is placed by a protocol, with the holder's consent.

Fields#

FieldDescription
ClaimNumber of tokens the prong can take. Fixed at placement.
Classcollateral or sale. Determines compatibility.
TriggerThe on-chain condition that must be proven for the prong to execute.
ExpiryTime after which the prong lapses.
SeniorityRank in the vault's settlement order.

Claims#

A claim is a number of tokens, not a value. The contract rejects any prong whose claim would make the sum of claims exceed the tokens held. This is the over-pledge check.

Triggers#

A trigger identifies a verifier and its parameters. Examples:

  • Lender: loan default proven, health factor below 1.0 at a Chainlink round.
  • Options desk: call exercised, Chainlink price at expiry above strike.
  • Club: club sale vote executed on-chain.

See Execution & proofs.

Seniority#

Prongs are settled by seniority. Rank 1 settles first.

  • Rank is assigned at placement. A new prong ranks below all existing prongs on that asset.
  • Ranks are relative. When a senior prong executes, is released or expires, every junior prong moves up one rank.
  • When several triggers are proven in the same block, they settle in rank order.

Expiry#

Every prong has an expiry. At expiry the prong lapses and its claim returns to the free balance. Expiry is not extended by a freeze.

Compatibility#

Prongs have a class. Collateral prongs (lenders) take tokens on default. Sale prongs (options desks, clubs) deliver tokens on exercise or on a vote.

Collateral prongs stack freely under the cap. A sale prong can coexist with collateral prongs. Two sale prongs on the same asset in one vault are rejected. A share can be lent and covered by a call, never sold twice.

Compatibility of two prongs on the same asset in one vault. The cap (sum of claims ≤ tokens held) applies in every case.
Existing ↓ / New →LendercollateralOptions desksaleClubsale
Lendercollateral Allowed Allowed Allowed
Options desksale Allowed Rejected: A second Options desk prong would put two sale prongs on one asset. A share can be lent and covered by a call, never sold twice. Rejected: Options desk with Club would put two sale prongs on one asset. A share can be lent and covered by a call, never sold twice.
Clubsale Allowed Rejected: Club with Options desk would put two sale prongs on one asset. A share can be lent and covered by a call, never sold twice. Rejected: A second Club prong would put two sale prongs on one asset. A share can be lent and covered by a call, never sold twice.

The same function drives this table and the simulator.

Rejections#

placeProng reverts when:

  • the claim would exceed the free balance (over-pledge);
  • the combination is incompatible;
  • the asset is frozen;
  • the placing protocol has insufficient $BZL staked;
  • the holder's consent signature is missing, expired or invalid.