Technical Flow

This page explains how Apollos works from architecture, protocol design, contracts, and math.

🛠️System Architecture

Apollos is designed as a layered system:

• Frontend Layer (apollos-fe)
  • User interaction for Earn, Credit Line, Bridge, and logs.
  • Reads onchain state via viem/wagmi.
  • Displays protocol metrics (TVL, APY, NAV-derived values, oracle references).
• Backend & Automation Layer (apollos-be)
  • Runs autonomous workers for Defender, Strategist, Accountant, and Reporter.
  • Computes off-chain decisions and submits onchain transactions when thresholds are met.
  • Persists AI/activity logs for UI consumption.
• Chainlink CRE Layer (apollos-cre)
  • Workflow-based automation model for modular role execution.
  • Each workflow role can be simulated independently.
• Smart Contract Layer (apollos-sc)
  • Vaults, router, pool integration, fee hook, and feed cache.
  • Executes the final source-of-truth state transitions.

Architecture Diagram

The system supports multiple isolated markets (WETH, WBTC, LINK), each with its own vault and integrations.

⚙️Core Technical Concepts

• Delta-Neutral Vault Structure
  • Users deposit base assets (WETH/WBTC/LINK) into per-asset vaults.
  • Vault strategy aims to capture yield while controlling directional risk.
• Oracle-Referenced Pricing
  • Chainlink feeds are used as the canonical reference price.
  • Uniswap spot is monitored against oracle price to detect spread/divergence.
• Autonomous Risk Management
  • Defender adjusts dynamic fee during abnormal volatility/divergence windows.
  • Strategist monitors leverage/health and triggers rebalance actions.
• Off-Chain Computation, Onchain Settlement
  • Complex logic (analytics, AI reasoning, NAV computation) is performed off-chain.
  • Final state updates are committed onchain via contracts.
• Modular Observability
  • Reporter writes structured logs so users can see why protocol actions occurred.

📚Contract Architecture

Main contracts are organized by responsibility:

• Factory
  • Registry and deployer for market modules.
• Vaults (afWETH, afWBTC, afLINK)
  • User deposits/withdrawals.
  • Share accounting and total asset tracking.
• Router / Cross-Chain Receiver
  • User entry points and cross-chain message handling.
• Uniswap Pool Integration + LVR Hook
  • Execution venue and dynamic fee control path.
• Aave Integration
  • Debt/collateral source for leverage and health checks.
• Data Feeds Cache
  • Onchain cache endpoint for NAV or oracle-aligned reporting values.

For current deployed addresses, see the Smart Contracts page.

🔢Mathematical Foundation

Core formulas used in protocol logic:

• Share Price
  • sharePrice = totalAssets / totalSupply
  • Used for vault accounting, user position value, and APY derivation.
• Position Value (USD)
  • valueUsd = assetAmount * oraclePriceUsd
  • Oracle price is the reference baseline.
• Delta Spread
  • deltaSpreadPct = ((uniswapSpot - oraclePrice) / oraclePrice) * 100
  • Used as a signal for fee defense and neutralization workflows.
• Health Factor (conceptual)
  • HF = (collateralValue * liquidationThreshold) / debtValue
  • Strategist uses threshold bands to decide deleverage or releverage.
• NAV Update Principle
  • NAV = assets - liabilities
  • Computed off-chain, then published onchain for low-gas reads.