Overview

Cerville Finance is an on-chain repo-style system for tokenized stocks that enables users to supply tokenized equities, borrow stable assets against them, and earn yield while enforcing identity checks, real-time risk controls, and verifiable on-chain decision logs.

Users access Cerville through a World Mini App, verify their humanity using World ID, and activate a strategy executed through a Chainlink CRE workflow.

CRE acts as the coordination layer that verifies identity privately, evaluates risk deterministically using live market data, and executes transactions on World Chain and Ethereum Sepolia. Cerville integrates with existing DeFi infrastructure rather than replacing it. Tokenized stocks are sourced via Ondo, positions are supplied to Euler lending markets, cross-chain transfers are executed through CCIP, and price data is secured using Chainlink Data Feeds.

This allows Cerville to function as a control and automation layer on top of proven DeFi protocols. Cerville does not issue tokenized stocks. It provides the repo and risk infrastructure that enables tokenized equities to be used as compliant, risk-aware collateral across existing DeFi markets.

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How It Works

1. World Mini App Entry + World ID Verification

Users start inside the World App and select a tokenized stock strategy. A World ID proof is requested and sent to CRE. CRE verifies the proof using Confidential HTTP against the World Cloud API. The proof and API keys never appear on-chain. If the user is not verified, the workflow stops and no transaction is executed. This creates an identity-gated access layer for DeFi strategies.

2. CRE Policy Engine

After identity verification, CRE evaluates deterministic eligibility rules:

• region
• limits
• expiry
• policy configuration

If a rule fails, the workflow exits to a safe state.

3. Dynamic LTV Risk Engine

CRE calculates a dynamic loan-to-value (LTV) based on:

• base LTV
• volatility adjustment
• liquidity adjustment

Example from the UI:

Base LTV: 80%

Volatility adjustment: −5%

Liquidity adjustment: −3%

Final LTV: 72%

This produces:

• max borrow amount
• liquidation threshold
• health factor after borrow
• risk level classification

The logic is deterministic and agreed upon by DON consensus.

4. Repo-Style Strategy Execution

The workflow performs:

1. Bridge USDC from World Chain to Ethereum via CCIP
2. Swap USDC to tokenized stock (e.g., AppleOn via Ondo router)
3. Supply tokenized stock to Euler lending pool
4. Lock collateral
5. Borrow USDC against the position
6. Bridge borrowed USDC back to World Chain

All steps are recorded in the CRE transaction workflow and produce on-chain transaction hashes.

5. Real-Time Monitoring

A scheduled CRE trigger continuously monitors:

• APY
• TVL
• utilization
• liquidity
• market activity

Hard gates:

• market inactive → withdraw
• data unavailable → withdraw

Score-based rule:

finalScore = (0.5 × yield) + (0.3 × liquidity) − (0.2 × risk penalty)

Score ≥ threshold → supply

Score < threshold → withdraw

All nodes reach consensus before execution.

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Why CRE Is Critical

CRE enables:

• private off-chain verification (World ID)
• automated cross-chain execution (World ↔ Ethereum via CCIP)
• scheduled monitoring without manual intervention
• verifiable workflow logs

This transforms tokenized stock strategies from manual and opaque into automated and auditable systems.

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User Flow Summary

Inside the World Mini App:

Strategy Selection

1. User selects a tokenized stock strategy (e.g., Buy & Lend AppleOn or Borrow against AppleOn).

Identity & Policy

1. World ID proof is requested and verified privately via CRE.
2. CRE evaluates policy rules and user eligibility.

Risk Calculation

1. CRE calculates dynamic LTV, max borrow amount, liquidation threshold, and health factor based on volatility and liquidity.

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Buy & Lend Flow (Repo Supply Side)

1. User inputs USDC amount and confirms Buy & Lend.
2. CRE executes the workflow:

• Bridge USDC from World Chain to Ethereum via CCIP
• Swap USDC to tokenized stock via Ondo router
• Supply tokenized stock to Euler lending pool

1. The position starts earning lend APY.
2. Supplied collateral value and risk metrics are displayed in real time.

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Borrow Flow (Repo Borrow Side)

1. User selects Borrow USDC against supplied tokenized stock.
2. CRE locks the collateral in Euler and checks borrow limits using dynamic LTV.
3. User confirms the borrow amount.
4. CRE executes:

• Borrow USDC from Euler
• Bridge borrowed USDC back to World Chain via CCIP
• Updated health factor, risk level, and liquidation threshold are shown.

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Monitoring & Explainability

1. CRE continuously monitors APY, liquidity, utilization, and market status.
2. If risk thresholds are breached, CRE automatically rebalances (supply or withdraw).
3. Every action produces:

• an on-chain transaction hash
• a post-consensus AI explanation
• a full CRE workflow log visible in the Activity panel

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What Problem It Solves

Tokenized stocks make repo-style strategies possible in DeFi users can:

• supply tokenized equities
• borrow stablecoins
• earn the spread

However, three critical control layers are missing:

1. Identity and compliance

Open DeFi access allows sybil accounts, bots, and ineligible users to interact with leveraged strategies. This prevents institutional adoption of tokenized securities.

2. Real-time risk response

Most lending positions rely on manual monitoring or delayed governance.

They cannot react instantly to:

• market closures
• liquidity drops
• utilization spikes
• volatility shocks

3. Lack of explainability

Users cannot verify why funds move, why LTV changes, or why a rebalance occurs. There is no on-chain audit trail for strategy decisions. Without identity gating, automated risk logic, and verifiable execution, tokenized stock lending remains unsafe and opaque.