Cog Pair

The Cog Pair is the heart of Cog Finance, powering individual collateralized loans. Each Cog Pair is individually configurable with a variety of parameters, but they come in four main types of pool. However, there are some additional mechanics that apply to all pools which will be covered first.

Oracles

Each Cog Pair supports a variety of oracle options, however the best option and the one which is reccomended is a Time-Weighted Average Price Oracle, commonly referred to as a TWAP Oracle. TWAP Oracles determine an average price based off a liquidity pool, for which Cog Finance supports TWAPs from Curve, Uniswap, and PoolSharks.

Risk Tiers

Each Cog Pair is supports a variety of different risk tiers depending on the collateral and asset within the pool. Risk tier influences a vareity of factors, such as collateralization ratio, interest rate elasticity, and target interest rates as well as utilization. The four types of risk tiers from lowest to highest are stable, low, medium, and high risk tier.

Design

Each Cog Pair asset token supports the ERC4626 interface, which allows each Cog Pair to be treated as its own unique vault. It additionally allows each Cog Pair to be directly plugged into a Yearn V3 Vault if the rumors are to believed.