Frequently Asked Questions

Answers to the most common questions about Dualis Finance, the Canton Network, and how the protocol works.

General

What is Dualis Finance?

Dualis Finance is an institutional-grade hybrid lending protocol built on the Canton Network. It enables users to supply, borrow, and earn yield on tokenized assets including cryptocurrencies, real-world assets (RWAs), and tokenized invoices (TIFA). The protocol supports both over-collateralized and under-collateralized lending through a proprietary credit tier system.

Is Dualis an RWA platform?

No. Dualis is not an asset tokenization platform. It is a lending layer. Other participants in the Canton ecosystem -- such as DTCC, BlackRock, and TIFA Finance -- tokenize assets. Dualis provides the lending, borrowing, and yield infrastructure that those tokenized assets need. Think of Dualis as Aave for institutional tokenized assets, not as the tokenizer itself.

Who built Dualis Finance?

Dualis Finance is built by Cayvox Labs, a fintech engineering studio focused on institutional DeFi infrastructure. The protocol is designed and engineered for regulated financial markets.

Is Dualis open source?

The protocol codebase is maintained at github.com/cayvox/dualis-finance. The documentation, shared utility libraries, and integration SDKs are available for developer reference. Smart contract source code and core protocol logic will be published following the completion of the external security audit.

Canton and Technology

What is the Canton Network?

Canton is a privacy-enabled, interoperable blockchain designed by Digital Asset for regulated financial markets. It provides sub-transaction privacy, deterministic finality, and smart contracts written in DAML. Institutions including DTCC, Euroclear, LSEG, and Goldman Sachs are building on Canton.

Why not Ethereum or Solana?

Institutional lending requires privacy, regulatory compliance, and deterministic settlement. Public blockchains expose all transaction data, have probabilistic finality, and lack built-in identity and privacy primitives. Canton was specifically designed for regulated financial markets, which is where the tokenized assets Dualis serves are being issued.

What wallets are supported?

Dualis supports Canton-native wallets through the PartyLayer SDK integration. Users can connect with Console, Loop, or any Canton-compatible wallet that supports the PartyLayer interface. Wallet connection manages Canton party identity, transaction signing, and Canton Coin balance queries.

What is DAML?

DAML (Digital Asset Modeling Language) is the smart contract language for Canton. It is a type-safe, functional language derived from Haskell that models multi-party workflows with explicit authorization via signatories and observers. Dualis uses 38 DAML contract templates across 25 modules.

Lending and Rates

How are interest rates determined?

Dualis uses a Jump Rate Model that adjusts supply and borrow rates based on pool utilization. Below the optimal utilization threshold, rates increase gradually. Above it, rates jump sharply to incentivize repayment and new supply. Each pool has configurable parameters: base rate, rate slope 1, rate slope 2, and optimal utilization. Credit tier discounts are applied on top of the base model.

What is a health factor?

The health factor is a numeric measure of a borrower's collateral adequacy. It equals the risk-adjusted collateral value divided by the total borrow value. A health factor above 1.0 means the position is solvent. At exactly 1.0 or below, the position becomes eligible for liquidation.

What happens when my health factor drops below 1.0?

Dualis uses a four-tier liquidation cascade. First, a gentle partial liquidation closes a small portion of the position to restore solvency. If that is insufficient, progressively more aggressive liquidation steps are triggered, up to full position closure. Liquidators receive an incentive bonus for executing liquidations. The cascade design minimizes unnecessary collateral loss for borrowers while ensuring protocol solvency.

What are credit tiers?

Dualis implements five credit tiers -- Diamond, Gold, Silver, Bronze, and Unrated -- that determine a borrower's maximum loan-to-value ratio and interest rate discount. Higher-tier borrowers can access more favorable terms, including under-collateralized lending. Credit tiers are assigned based on on-chain credit attestations and composite scoring from multiple data sources.

What types of collateral are accepted?

Dualis supports three collateral classes: crypto assets (no haircut applied), real-world assets or RWAs (5% haircut), and TIFA tokenized invoices (20% haircut). Each class has different risk parameters including liquidation thresholds, LTV caps, and liquidation bonuses calibrated to the asset's risk profile.

Features

How do flash loans work on Dualis?

Flash loans allow users to borrow any amount from a lending pool without collateral, provided the full amount plus a fee is returned within the same transaction. On Canton, this is implemented as an atomic DAML choice that must complete within a single transaction boundary. If the repayment condition is not met, the entire transaction reverts. Flash loans are useful for arbitrage, collateral swaps, and self-liquidation.

Does Dualis support securities lending?

Yes. The institutional track includes a securities lending marketplace where verified institutions can lend and borrow tokenized securities. This includes features such as recall rights, netting, and fee negotiation. Securities lending is available to Institutional and Institutional Prime tier users who have completed KYB verification.

Can I use Dualis without KYC?

The retail basic track allows users to supply crypto assets to lending pools with only an email and wallet connection, without full KYC. However, borrowing, RWA collateral, and higher position limits require Sumsub KYC verification. Institutional features require full KYB and enhanced due diligence.

Token and Governance

What is the DUAL token?

DUAL is the governance token of Dualis Finance. It is used for voting on protocol proposals, delegating voting power, and participating in governance decisions such as parameter changes, pool additions, and protocol upgrades. DUAL is implemented as a DAML contract on Canton with standard transfer, mint, and burn capabilities.

How does governance work?

Protocol governance follows a proposal lifecycle: creation, voting period, timelock, and execution. Any DUAL holder above the proposal threshold can create a proposal. During the voting period, token holders cast votes weighted by their DUAL balance. Approved proposals enter a timelock period before execution, providing a security window for review.

What fees does Dualis charge?

Dualis collects revenue through supply spreads (a portion of borrow interest), borrow premiums, flash loan fees, and liquidation incentive spreads. Fee parameters are set per pool and can be adjusted through governance proposals. Protocol reserves accumulate from fee revenue and serve as a backstop against bad debt.

Technical

How do price oracles work?

Dualis aggregates price data from 11 oracle feeds through the Dualis.Oracle.PriceFeed DAML module. Prices are aggregated using a median filter with staleness checks. If a price feed becomes stale (exceeds the configured freshness threshold), the staleness checker trigger activates a circuit breaker that pauses affected operations until fresh data is available.

How does interest accrual work?

Interest accrues using an index-based model that operates in O(1) time per update. Rather than iterating over individual positions, the protocol maintains global supply and borrow indices that compound over time. Individual position values are calculated by multiplying the user's principal by the ratio of the current index to the index at the time of their last interaction. This approach scales efficiently regardless of the number of positions in a pool.