Smart Escrow & Liquidity-as-a-Service

Beyond the standard Borrower-operated facility, the protocol supports facilities where the Escrow itself is the borrower of record — enabling structured products where borrowed capital never touches an external wallet.

Smart Escrow

A Smart Escrow is an Escrow contract that acts as the Line's borrower. The end borrower operates through the escrow:

• Credit Positions are proposed, refinanced, and closed by the end borrower via the escrow

• Draws land inside the escrow and are immediately accounted as collateral

• Repayments are made from escrowed funds; if the facility becomes LIQUIDATABLE, anyone can push escrowed funds to repayment — recovery does not depend on borrower cooperation

The result is a fully ring-fenced facility: borrowed funds exist only within the escrow's rule set from draw to repayment.

LaaS Escrow (Liquidity-as-a-Service)

The LaaS Escrow extends Smart Escrow for one specific use: deploying borrowed capital into a pre-agreed liquidity pool (including Uniswap V3).

• The parties pre-configure the target pool and one or more liquidity position strategies (component tokens, amounts, and the exact provisioning calldata). Configuration can only change when there are no active positions or proposals, and every change increments the facility nonce — lenders always consent to the strategy as configured.

• The borrower (or Admin) can draw down and create the LP position in a single transaction, or draw and add to an existing position. A minimum-collateral-value check and the post-drawdown minimum collateral ratio are enforced on every operation.

• Liquidity can be reduced by the borrower or Servicer, and if the facility becomes LIQUIDATABLE the Servicer can unwind the entire LP position back to component tokens for repayment.

LaaS turns a Line of Credit into programmatic, credit-funded liquidity provisioning — with lender security enforced at every step by the escrow, not by covenant.