Protocol Architecture - Multiliquid Protocol

System Overview

The Multiliquid Protocol is built on a modular, upgradeable architecture that enables atomic swaps between multiple permissioned Real World Asset (RWA) tokens and multiple stablecoins. The system is designed for institutional-grade operations with comprehensive risk management, transparent fee structures, and extensible integration patterns.

Design Principles

Modularity: Asset-specific logic isolated in delegate contracts
Upgradeability: UUPS proxy pattern enables secure evolution
Atomicity: All operations either fully succeed or fully revert
Transparency: All state changes emit comprehensive events
Extensibility: New assets can be integrated without modifying core logic

Core Contract System

The protocol consists of four primary contract categories that work together to enable secure, atomic swaps between RWAs and stablecoins.

How the Contracts Work Together

At the heart of the system, MultiliquidSwap acts as the central orchestrator that coordinates all swap operations. When a user initiates a swap, MultiliquidSwap queries Price Adapters to obtain real-time USD valuations for the assets involved, then calculates the exact amounts using WAD mathematics and applies the appropriate protocol fees. For added security, it calls RWA Delegates (if configured) to enforce volume limits and compliance checks before any tokens move. Finally, it delegates the actual token transfers to Stablecoin Delegates, which handle the asset-specific logic—whether minting new stablecoins, transferring from custody, or burning tokens. This separation of concerns ensures that each contract focuses on its specialized responsibility while maintaining atomic execution, meaning every swap either completes entirely or reverts with no partial state changes.

1. MultiliquidSwap Contract

Location: MultiliquidSwap.sol The central orchestrator managing all swap operations, fee calculations, and asset interactions.

Core Responsibilities

Swap Orchestration: Coordinates stablecoin↔RWA, RWA↔RWA, and stablecoin↔stablecoin routes with ExactIn and ExactOut variants
Fee Management: Resolves protocol fees paid by capital providers, spread fees, and asset fees configured by capital providers
Price Calculation: Integrates with price adapters for USD-denominated valuation
Access Control: Enforces role-based permissions for all operations
Quote Generation: Provides a view function for off-chain quote calculation

View MultiliquidSwap Contract Details

Complete function signatures and implementation details

2. Stablecoin Delegate System

Base Contract: StablecoinDelegateBase.sol Stablecoin delegates handle asset-specific integration logic for each supported stablecoin.

Core Responsibilities

Stablecoin Operations: Mint, burn, or transfer stablecoins based on delegate type
RWA Whitelist Management: Maintain RWA whitelists per capital provider controlled by capital provider admins
Fee Configuration: Set discount rates, redemption fees, and acceptance fees per RWA
Risk Controls: Pause mechanisms and compliance hooks for metadata validation
Custody Management: Manage RWA token custody addresses (for balance sheet delegates)

Delegate Types

Mint/Burn Delegates: Direct integration with stablecoins supporting native minting
Balance Sheet Delegates: Custody-based model for existing stablecoin liquidity balances without mint/burn integration
Yield-Bearing Delegates: Credit and yield accounting layered onto stablecoin settlement

View Stablecoin Delegate Details

Complete interface and implementation details

3. RWA Delegate System

Base Contract: RWADelegate.sol RWA delegates provide optional risk management and compliance controls for specific RWA tokens. Only deployed when custom controls beyond token-native functionality are needed.

Core Responsibilities

Volume Limits: Enforce daily swap limits per wallet with configurable reset windows
Risk Validation: Validate RWA transfers with checkRWAIn() and checkRWAOut() hooks
Pause Controls: RWA-admin-controlled pause mechanism independent from protocol-wide pause

When to Use

RWA delegates are only required when additional risk management is needed beyond the RWA token’s native controls (e.g., built-in KYC, transfer restrictions).

View RWA Delegate Details

Complete interface and implementation details

4. Price Adapter System

Interface: IPriceAdapter.sol Price adapters provide USD-denominated pricing for all assets in the protocol.

Core Responsibilities

Price Provision: Return USD price in 18-decimal WAD format (1e18 = $1.00 USD)
Asset-Specific Integration: Query published NAV of the RWA
Standardization: Normalize pricing across different RWA token architectures

View Price Adapter Details

Complete adapter implementations and integration patterns

5. Application Layer: Multiliquid Treasury

The protocol’s modular architecture enables higher-level financial products built on the core swap infrastructure. Multiliquid Treasury is the first such application. Multiliquid Treasury Token (Treasury.sol):

Multi-chain institutional treasury token with whitelist and blacklist compliance controls
Dual minting modes: whitelist-enforced primary issuance and bridge-agnostic cross-chain minting
Emergency controls (force burn, force transfer) and EIP-2612 permit support

Treasury Delegate (TreasuryDelegate.sol):

Yield-bearing stablecoin delegate integrating Multiliquid Treasury with MultiliquidSwap
Daily interest rate accrual based on underlying tokenized money market fund performance
Withheld credits system with 24-hour hold period for risk management
Permissionless interest accrual with bounded processing for gas safety

View Multiliquid Treasury Details

Complete token mechanics, yield system, compliance controls, and bridge integration

Operational Flow

Swap Execution Flow

Data Structures

RWA Information

struct RWAInfo {
    bool accepted;                    // Whether RWA is accepted for swaps
    bool additionalRiskControls;      // Whether delegate risk checks are enabled
    uint8 decimals;                   // Token decimals (e.g., 6, 18)
    address delegate;                 // Optional delegate address (address(0) if none)
    address assetAddress;             // Address of the RWA token contract
}

Stablecoin Information

struct StablecoinInfo {
    bool accepted;                    // Whether stablecoin is accepted
    bool yieldBearing;                // Whether the stablecoin accrues yield
    uint8 decimals;                   // Token decimals
    address delegate;                 // Capital provider delegate, or zero for swap-only counterparty assets
    address assetAddress;             // Address of the stablecoin token contract
}

Fee Model

The protocol separates protocol fees paid by capital providers, the protocol’s share of capital provider spreads, and asset fees configured by capital providers. Each capital provider configures spreads and fees independently for every accepted asset within its own delegate domain.

Permission Model

The protocol implements a comprehensive role-based access control system:

Global Roles

DEFAULT_ADMIN_ROLE

Can upgrade contracts via UUPS
Administers roles according to each contract’s configured role hierarchy
Configures the Multiliquid protocol fee vault
Intended for multi-sig governance

OPERATOR_ROLE

Day-to-day operational control
Can accept new RWAs and stablecoins
Can update price adapters
Can configure protocol fee policy and stablecoin guardrails
Can pause and unpause the MultiliquidSwap contract (emergency and maintenance)
Cannot upgrade contracts

PAUSE_ROLE (Delegate Contracts)

Exists on stablecoin and RWA delegate contracts, not on MultiliquidSwap
Can pause individual delegate operations
Provides granular, per-delegate emergency controls

Asset-Specific Roles

Capital Provider Admin Each stablecoin delegate has its own capital provider admin who can:

Set RWA discount rates for their stablecoin
Set RWA redemption fees for their stablecoin
Manage the RWA whitelist for their stablecoin
Pause their specific delegate
Configure custody addresses

RWA Admin Each RWA delegate has its own RWA admin who can:

Configure volume limits
Adjust risk parameters
Pause their specific delegate

Special Role

MULTILIQUID_SWAP_CONTRACT

Granted to the MultiliquidSwap contract address
Allows the swap contract to call delegate functions
Ensures only the central orchestrator can trigger swaps

Upgrade Mechanism

All core contracts use the UUPS (Universal Upgradeable Proxy Standard) pattern:

Upgrade Safety

Storage Gaps: All upgradeable contracts include storage gaps for future variables
Initialization Guards: Prevents re-initialization of upgraded contracts
Access Control: Only DEFAULT_ADMIN_ROLE can execute upgrades
Event Emission: All upgrades emit events for transparency

Event System

The protocol emits events for settlement and major configuration changes:

Swap Events

Every requested and internally derived leg emits the unified Swap event. It identifies the user, operator, receiver, assets, route, capital provider domain, resolved amounts, and fee amounts.

Administrative Events

Dedicated administrative events cover asset registration, pricing, guardrails, fee policy, custody, capital provider settings, blacklists, and auto-liquidity.

Next: Security & Risk Management

Review the comprehensive security measures, access controls, and risk management framework

​System Overview

​Design Principles

​Core Contract System

​How the Contracts Work Together

​1. MultiliquidSwap Contract

​Core Responsibilities

View MultiliquidSwap Contract Details

​2. Stablecoin Delegate System

​Core Responsibilities

​Delegate Types

View Stablecoin Delegate Details

​3. RWA Delegate System

​Core Responsibilities

​When to Use

View RWA Delegate Details

​4. Price Adapter System

​Core Responsibilities

View Price Adapter Details

​5. Application Layer: Multiliquid Treasury

View Multiliquid Treasury Details

​Operational Flow

​Swap Execution Flow

​Data Structures

​RWA Information

​Stablecoin Information

​Fee Model

​Permission Model

​Global Roles

​Asset-Specific Roles

​Special Role

​Upgrade Mechanism

​Upgrade Safety

​Event System

​Swap Events

​Administrative Events

Next: Security & Risk Management

System Overview

Design Principles

Core Contract System

How the Contracts Work Together

1. MultiliquidSwap Contract

Core Responsibilities

2. Stablecoin Delegate System

Core Responsibilities

Delegate Types

3. RWA Delegate System

Core Responsibilities

When to Use

4. Price Adapter System

Core Responsibilities

5. Application Layer: Multiliquid Treasury

Operational Flow

Swap Execution Flow

Data Structures

RWA Information

Stablecoin Information

Fee Model

Permission Model

Global Roles

Asset-Specific Roles

Special Role

Upgrade Mechanism

Upgrade Safety

Event System

Swap Events

Administrative Events