This section explains the fundamental building blocks and internal mechanics of the Vanna protocol. Understanding these concepts will help you better understand how Vanna powers composable credit infrastructure at the protocol level.
Core Mechanics
Margin Accounts
Per-user on-chain accounts that hold collateral, track debt, and deploy capital into external DeFi protocols.
Lending Pools
Per-asset vaults that accept deposits, lend to Margin Accounts, and distribute interest to liquidity providers.
vTokens
Share tokens issued to liquidity providers. Appreciate in value as borrowers pay interest.
Risk & Economics
Health Factor
The metric that determines whether an account can borrow, withdraw, or must be liquidated.
Liquidation
How undercollateralized accounts are closed and lenders are made whole.
Interest Rate Model
How borrowing costs adjust automatically based on pool utilization.
Oracle System
How asset prices enter the protocol for collateral valuation and health checks.