How Does It Work?

When users wish to borrow, they first need to link their account and collateral vaults to the borrowed-from vault through the EVC. Thanks to that, the liability vault, also known as the controller, will be consulted whenever a user wants to perform an action that could potentially impact the account's solvency, such as withdrawing collateral or taking a borrow. The EVC is responsible for calling the controller to determine whether the action is allowed or if it should be blocked to prevent account insolvency. You can think of the EVC as a special-purpose multicall contract that provides:

• Caller authentication
• Account and vault status enforcement
• Multiple operations batching

For more detailed information, see the EVC dedicated website.