Lending Logic Layer by Helios

With consensus and custody handled by MIDL, Helios’s core role is as the smart contract layer that defines lending and borrowing functionality. Helios is essentially a set of programs (smart contracts) deployed on the MIDL execution layer (which in turn is anchored to Bitcoin). These contracts encode all the financial logic and rules for the lending platform – for example, how collateral is managed, how interest is accrued, loan-to-value ratios, liquidation conditions, and so forth. When users interact with Helios, they are invoking these smart contract functions via Bitcoin transactions that include the necessary instructions/data. The MIDL network’s validators then execute Helios’s contract code (off-chain, in an EVM-compatible environment) and produce verifiable outcomes that are recorded on Bitcoin. From the user’s perspective, they simply send Bitcoin to a Bitcoin address (with a specific payload) to perform an action like opening a loan or repaying a debt, and the combined Helios+MIDL system handles the rest.

In summary, Helios should be viewed as a protocol layered on Bitcoin via MIDL, analogous to how a DeFi application on Ethereum relies on Ethereum’s miners/validators. Helios is responsible for the financial mechanics – ensuring that loans are properly collateralized, interest is tracked, and the system remains solvent – while MIDL is responsible for the execution and security – ensuring those contract rules are carried out correctly and that funds are safe. Helios’s architecture deliberately avoids reinventing consensus or custody solutions; instead, it builds on MIDL’s robust DPoS and TSS foundation. This means Helios can concentrate on innovating in Bitcoin-based lending without compromising on decentralization or security. Developers and due diligence reviewers can thus focus on Helios’s smart contract code and economic design, confident that the underlying consensus and custody are handled by the secure MIDL network.