> ## Documentation Index
> Fetch the complete documentation index at: https://scalex.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Balance manager

BalanceManager serves as the central hub of the Unified CLOB DEX-Lending Protocol, managing all asset allocation between trading and lending operations.

## Core Functions

### Asset Reception and Allocation

When users deposit assets, BalanceManager automatically:

* Mints synthetic tokens 1:1 for trading operations
* Allocates real underlying assets to lending pools
* Maintains separation between trading liquidity and lending capital

### User Balance Management

Tracks and manages user positions across:

* Synthetic token balances for order book trading
* Real asset holdings in lending pools
* Accumulated yield entitlements
* Borrowing capacity calculations

### Yield Distribution Coordination

Coordinates with LendingManager to:

* Update global yield counters
* Calculate user-specific yield through weighted checkpoints
* Ensure fair yield distribution across all users

## Technical Implementation

### Smart Contract Structure

```solidity theme={null}
contract BalanceManager {
    // User synthetic token balances
    mapping(address => mapping(address => uint256)) public syntheticBalances;
    
    // Yield tracking per user
    mapping(address => mapping(address => uint256)) userYieldCheckpoints;
    
    // Global yield accumulator
    mapping(address => uint256) public yieldPerToken;
    
    function deposit(address asset, uint256 amount) external {
        // Mint synthetic tokens
        // Allocate to lending
        // Update checkpoints
    }
}
```

### Checkpoint Mechanism

Implements weighted average checkpoints to ensure fair yield tracking:

* Updates checkpoints on deposits and withdrawals
* Maintains 1:1 synthetic token pegging
* Separates yield accounting from trading operations

## Integration Points

### With OrderBook

* Provides synthetic token liquidity for trading
* Locks tokens during active orders
* Updates balances on order execution

### With LendingManager

* Supplies real assets for lending operations
* Receives yield distributions
* Calculates borrowing power

### With Oracle

* Receives price feeds for asset valuations
* Updates collateral calculations
* Ensures accurate pricing for all operations

## Security Features

* **Access Control**: Only authorized contracts can modify balances
* **Reentrancy Protection**: Prevents recursive calls during operations
* **Decimal Precision**: Handles different token decimals accurately
* **Emergency Functions**: Circuit breakers for crisis situations

BalanceManager is the critical coordination layer that enables seamless capital flow between trading and lending while maintaining perfect asset tracking and user position management.