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Architecture Philosophy

Borrow Recovery is built as a frontend-only application with no backend infrastructure:
  • No backend signer - All signatures happen in your connected wallet
  • No database - All data is read directly from blockchain
  • No paymaster - Users pay their own gas fees
  • No hosted service dependencies - Works completely decentralized
This design ensures the recovery UI remains functional even if the main service is unavailable.

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High-Level Architecture

The system consists of three core components: 
┌─────────────────┐
│  User's Wallet  │
│    (EOA/EOA)    │
└────────┬────────┘
         │
         │ 1. Derive address
         ▼
┌─────────────────────────────┐
│  Kernel v3.3 Smart Account  │
│  (Deterministic Address)    │
└────────┬────────────────────┘
         │
         │ 2. Read positions
         ▼
┌────────────────────────────┐
│   DeFi Protocols           │
│   • Aave V3 Pools          │
│   • Morpho Blue Markets    │
└────────┬───────────────────┘
         │
         │ 3. Submit UserOp
         ▼
┌────────────────────────────┐
│   ERC-4337 Infrastructure  │
│   • EntryPoint v0.7        │
│   • Bundler (ZeroDev)      │
└────────────────────────────┘

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Key Components

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1. Wallet Derivation

The app derives deterministic ZeroDev Kernel v3.3 smart account addresses from:
  • Your connected EOA address
  • A wallet index (0, 1, 2, …)
  • Deterministic CREATE2 deployment
This allows you to recover any loan wallet by knowing just the index.
The derivation logic is in lib/kernel/deriveKernelAddress.ts and uses ZeroDev SDK constants.

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2. Position Reading

The app reads blockchain state directly using:
  • Public RPC endpoints (no API keys required)
  • Smart contract view functions
  • Multi-chain support (Ethereum, Base, Arbitrum, BNB)
Protocol integrations:
  • Aave V3: Reads collateral, debt, and health factor from Pool contracts
  • Morpho Blue: Reads position shares and collateral from market contracts

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3. UserOperation Submission

Rescue actions (repay, withdraw, transfer) are executed via ERC-4337:
  • Construct UserOperation with calldata for target protocol
  • Estimate gas using bundler RPC
  • Sign UserOp hash with connected wallet
  • Submit to bundler for execution
All execution logic is in lib/accountAbstraction/submitUserOpV07.ts.

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Project Structure

lib/
├── kernel/
│   └── deriveKernelAddress.ts    # Kernel address derivation
├── accountAbstraction/
│   ├── submitUserOpV07.ts        # UserOp construction & submission
│   └── userOpHashV07.ts          # UserOp hash calculation
├── protocols/
│   ├── aave.ts                   # Aave V3 calldata encoding
│   ├── morpho.ts                 # Morpho Blue calldata encoding
│   ├── kernel.ts                 # Kernel execute calls
│   ├── erc20.ts                  # ERC-20 token operations
│   └── entryPoint.ts             # EntryPoint v0.7 interface
├── chains.ts                     # Chain configurations
└── assets.ts                     # Token configurations

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Multi-Chain Support

The app supports loan recovery across:
  • Ethereum (Chain ID: 1)
  • Base (Chain ID: 8453)
  • Arbitrum (Chain ID: 42161)
  • BNB Chain (Chain ID: 56)
All chain configurations include:
  • RPC endpoints
  • Aave V3 contract addresses
  • Morpho Blue contract addresses
  • Block explorer URLs
See lib/chains.ts for full configuration details.

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Security Model

The app never asks for or stores private keys. All signing happens in your connected wallet.
Security principles:
  • Non-custodial: Users maintain full control of keys
  • Transparent: All transactions are shown before signing
  • Deterministic: Address derivation is reproducible
  • Open source: All code is auditable

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Next Steps

Kernel Accounts

Learn about ZeroDev Kernel v3.3 smart accounts

Account Abstraction

Understand ERC-4337 UserOperations

Protocol Integration

Explore Aave and Morpho integrations

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