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Sourcing Layer

The Sourcing Layer is responsible for introducing credit into PRISM.

In production, this layer can connect to real originators, real-world assets, collateral networks, borrower interfaces, and institutional credit pipelines. In the current implementation, the layer is intentionally narrow so the core mechanics can be demonstrated clearly.

Responsibilities​

The Sourcing Layer handles:

  • Credit origination.
  • Capital intake.
  • Borrower interface design.
  • Yield source integration.
  • Future collateral and identity integrations.

Current Implementation​

The first implementation uses on-chain vault-based credit issuance.

Yield is injected programmatically by authorized accounts. This allows the demo to show how a borrower payment or coupon enters the system and gets distributed through the waterfall without depending on off-chain underwriting during the initial build.

The current design prioritizes:

  • Clean vault accounting.
  • Deterministic demo flows.
  • Fast iteration on devnet.
  • Transparent yield and default simulation.

Future Extensions​

PRISM is designed to support broader credit sourcing without changing the core waterfall model.

Future extensions may include:

  • Real-world asset originators.
  • Institutional borrower onboarding.
  • Cross-chain collateral via MPC networks.
  • On-chain or off-chain borrower risk scores.
  • Credit facility management.
  • Oracle-triggered borrower payment verification.

Interface With The Core Protocol​

The Sourcing Layer should pass only validated financial events into the Core Protocol Layer.

Examples:

  • "This vault received 100 USDC of yield."
  • "This credit pool realized a 6,500 USDC loss."
  • "This borrower has repaid principal."

The Core Protocol Layer then decides how those events affect tranche NAV and user redemption value.