Architecture

Clovis introduces a new smart contract architecture that separates accounting logic from liquidity settlement. The Settlement layer handles asset custody via lightweight vaults, while the Clearing Layer on the Sei network manages global accounting, executes shared financial logic, and also holds liquidity buffers that can be deployed to efficiently rebalance the Settlement Layer when its local reserves fall below a threshold.

The Clearing and Settlement Layers

At the core is the Clovis Clearing Layer, deployed on the highly performant Sei network, which serves as the canonical global ledger. It maintains all accounting logic (global balances, utilization, risk math, and price curves) and governs the three core primitives: Clovis Market (lending), Clovis Exchange (trading), and Clovis Transport (bridging). The Clearing Layer sets universal interest rates and pricing curves, ensuring consistent economic logic across all chains.

Meanwhile, the Liquidity Settlement Layer features lightweight vaults deployed on all connected chains. These vaults hold the actual tokens and fulfill user actions locally (such as borrows, swaps, and transfers) based on instructions and validation from the hub.

By decoupling “books” from “cash”, Clovis enables:

• Universal Swap Liquidity: assets deposited from any chain become part of a global TVL pool

• Market Maximization: lending capital can be used for Clovis main market, local money markets, and in the future, curated markets which can list main market receipt tokens for metapools.

• Opt-In just-in-time reuse: users can choose to allow their liquidity to back multiple primitives simultaneously (lending, trading, bridging), thereby improving overall capital efficiency and yield.

Clearing Layer

Sei Network

The central coordinator is responsible for core functions, including liquidity management, interest rate/price calculations, and rebalancing. Sei network’s sub-second finality enables ultra-fast processing and settlement, ensuring efficient dispatch of assets to the Settlement layer.

Clearing Layer as an Accounting Layer

The Sei network, acting as the Clearing layer, serves as the central layer for all calculations and accounting within the Clovis system. It handles:

• User’s Global balance within the Clovis Ecosystem

• Money Market Calculations: Computes critical metrics such as users’ health factors (a measure of their loan-to-value ratio) and borrowing power (the amount they can borrow based on their collateral).

• Exchange Calculations: Determines the automated market maker (AMM) price for trading pairs in Exchange’s liquidity pools, ensuring consistent pricing across the network.

By centralizing these calculations, Clovis ensures that all financial computation and logic—whether for lending or trading—is uniform and accurate, regardless of the chain where user interactions occur.

Settlement Layer

Settling assets and transactions across: Ethereum, Arbitrum, Base, BNB Chain, and more.

Handle chain-specific user interactions, such as deposits, withdrawals, trades, and asset transfers, while maintaining real-time synchronization with the layer.

Spoke Chain + Liquidity Buffers power the Settlement Layer.

While the Clearing Layer manages accounting, the actual delivery of tokens to users (settlement) occurs locally on the Spoke chains of the Settlement Layer (e.g., Arbitrum, Base, Ethereum). Each Spoke chain maintains a liquidity buffer that facilitates instant settlements. After the Clearing Layer performs its calculations (e.g., determining the outcome of a trade or loan), it instructs the Settlement layer’s liquidity buffer to deliver the appropriate tokens to the user. This separation minimizes cross-chain asset movement, reducing latency and gas costs.