VarlaCore

The central contract of the Varla protocol. VarlaCore manages collateral deposits and withdrawals (ERC1155 positions), borrowing, repayment, health factor enforcement, and position lifecycle.

contracts/VarlaCore.sol — inherits ERC1155Holder, AccessManaged, ReentrancyGuard

Immutables

Name	Type	Description
`positionsToken`	IERC1155	The ERC1155 contract holding prediction market positions (e.g. CTF)
`collateralToken`	IERC20	The ERC20 token used for borrowing (e.g. USDC)
`collateralDecimals`	uint8	Decimal precision of the collateral token
`pool`	IVarlaPool	The lending pool that provides liquidity
`MIN_BORROW`	uint256	Minimum borrow amount to prevent dust positions

Key Structs

LtvConfig

Per-position LTV configuration with three risk tiers (all values in WAD — 18 decimals).

struct LtvConfig {
    uint256 conservative;  // e.g. 0.50e18 → 50% LTV
    uint256 moderate;      // e.g. 0.65e18 → 65% LTV
    uint256 risk;          // e.g. 0.80e18 → 80% LTV
}

LiquidationConfig

struct LiquidationConfig {
    uint256 targetHealthFactor;          // HF target after liquidation
    uint256 healthFactorForMaxBonus;     // HF threshold for max bonus
    uint256 liquidationBonusFactorBps;   // Bonus factor in basis points
    uint256 dustThreshold;               // Min debt to avoid dust
    uint256 collateralDustThreshold;     // Min collateral to avoid dust
}

TierLiquidationConfig

struct TierLiquidationConfig {
    uint16 maxLiquidationBonusBps;   // Max bonus for this risk tier
    uint16 liquidationFeeBps;         // Protocol fee on liquidations
}

RiskTier enum

enum RiskTier { CONSERVATIVE, MODERATE, RISK }

Each user selects a risk tier when opening a position. Higher tiers allow higher LTV but face steeper liquidation penalties.

UserAccount

struct UserAccount {
    uint256[] positionIds;    // Deposited ERC1155 token IDs
    uint256   scaledDebt;     // Scaled debt (before interest)
    uint256   borrowTimestamp; // When the user last borrowed
}

User-Facing Functions

Function	Description
`deposit(uint256[] positionIds, uint256[] amounts)`	Deposit ERC1155 prediction market positions as collateral. Transfers tokens into VarlaCore.
`withdraw(uint256[] positionIds, uint256[] amounts)`	Withdraw collateral. Reverts if withdrawal would make position unhealthy.
`borrow(uint256 amount)`	Borrow collateral token (e.g. USDC) against deposited positions. Must maintain health factor ≥ 1.0. Minimum borrow enforced.
`repay(uint256 amount)`	Repay outstanding debt. Partial repayment allowed.
`repayAll()`	Repay full outstanding debt including accrued interest.

View Functions

Function	Returns
`getHealthFactor(address user)`	Current health factor (WAD). < 1.0 → liquidatable.
`getAccountValues(address user)`	`AccountValues` — portfolio value, collateral value, liquidation eligibility, oracle guard state.
`getUserPositionIds(address user)`	Array of deposited ERC1155 token IDs.
`getUserDebt(address user)`	Current debt including accrued interest.
`getPositionLtv(uint256 positionId)`	`LtvConfig` for the given position.

Admin Functions

These functions are gated by AccessManaged — only addresses with the appropriate role in VarlaAccessManager can call them.

Function	Role	Description
`setLtvConfig(uint256 pid, LtvConfig)`	RISK_MANAGER	Set LTV tiers for a position ID
`setLiquidationConfig(...)`	RISK_MANAGER	Update liquidation parameters
`setTierLiquidationConfig(RiskTier, ...)`	RISK_MANAGER	Configure per-tier liquidation bonus/fee
`setLiquidator(address)`	Admin	Set the liquidator contract address

Events

event Deposited(address indexed user, uint256[] positionIds, uint256[] amounts);
event Withdrawn(address indexed user, uint256[] positionIds, uint256[] amounts);
event Borrowed(address indexed user, uint256 amount);
event Repaid(address indexed user, uint256 amount);
event Liquidated(address indexed user, address indexed liquidator, uint256 debtRepaid, uint256 collateralSeized);

✦ Key Takeaways

VarlaCore is the central contract — it holds all ERC1155 collateral and manages all user debt
All collateral is ERC1155 (prediction market positions), all debt is ERC20 (e.g. USDC)
Health factor < 1.0 triggers liquidation eligibility — see VarlaLiquidator
Three risk tiers (Conservative, Moderate, Risk) with different LTV and liquidation parameters
Protected by ReentrancyGuard and AccessManaged (RBAC via VarlaAccessManager)