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Matocard is one smart contract, MatoCreditLine, holding three things:
  1. Borrowers’ collateral, as shares of a yield vault.
  2. Lenders’ AUSD, in a pool that funds every draw.
  3. Each borrower’s record: debt, due date, cycles, score.

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The lifecycle of a cycle

  • Draw. A verified borrower draws AUSD up to their available credit, to any address: their own, a family member’s, a merchant’s. The first draw of a cycle fixes its due date (30 days) and the rules it will be judged by.
  • Repay. Repaying to zero closes the cycle. If it qualifies, the score goes up. Repaying more than is owed is capped, not refused.
  • Default. If the debt is still open after the due date and the grace period, anyone may call markDefaulted. See Defaults.

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Your limit

  • Collateral value is what your vault shares are worth now, net of the yield fee.
  • Collateral ratio falls as your score rises: 150% at score 0, 80% at score 100.
So the limit rises two ways: when your collateral earns yield, and when your score goes up. The Credit score page has the full formula.

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What the contract guarantees

  • Your debt can never exceed your limit after a draw or a withdrawal.
  • Collateral still in a card hold never counts toward the limit.
  • Repaying is never paused, so nobody is defaulted for want of a way to pay.
  • One identity can never be bound to two accounts.
Each is covered by unit tests, alongside invariant tests over random activity. See Security.