Anvil

Anvil’s operation is based on three principal contract systems:

CollateralVault: Holds user deposits and ensures collateral remains segregated, verifiable, and auditable. It supports ERC-20 assets and enforces withdrawal fees and restrictions to prevent rehypothecation. The vault separates available and reserved balances, ensuring that all collateral supporting outstanding credit remains accessible for settlement.

Time-Based Collateral Pool (TBCP): Allows users or institutions to pool collateral under defined time constraints. Withdrawals are delayed for a specific period to preserve stability, providing a framework suitable for institutional guarantees, escrow operations, and long-term financial contracts.

Letter of Credit (LOC): Represents a digital financial guarantee backed by reserved collateral. Each LOC specifies a collateral asset (security) and a credited asset (value owed). The LOC system supports both unconverted (uLOC) and converted (cLOC) states, giving users the option to redeem or cancel guarantees depending on transaction outcomes. Anvil integrates oracles and liquidation mechanisms to maintain solvency and real-time collateral ratio enforcement. This ensures that all issued credit remains fully backed by verifiable assets throughout its lifecycle.