Inspiration
We started out to create solutions to problems we identified in the NFT space and quickly realized that we could add more value by generalizing beyond NFTs and providing a platform that supports different kinds of tokenized assets. Thus, our solution brings together the best elements from industry leaders AAVE, Curve, and Compound, with features built to support current and future token standards.
What it does
Chedda is a DeFi lending protocol with isolated lending pools that supports multiple token standards, and VE token mechanics which lets our token holders direct token emission. Liquidity providers provide liquidity in our single sided pools so do not suffer impermanent loss as a result of token price fluctuations. Our isolated pool model means that we support different pools with varying risk profiles. Large cap assets like ETH, WBTC, MATIC, USDC in "safer" pools, while more risky assets can be used as collateral in riskier pools. This design also allows us to support using NFTs as collateral in some pools. Another plus is that our pools are more secure as they are segregated, so a "bad asset" added to one pool does not put the entire protocol at risk.
Liquidity providers can thus, choose how much risk they want to take on. Token holders for smaller cap tokens can also unlock liquidity in ways that would not be possible on other lending protocols. Being able to use your NFT as collateral in a lending pool is just the icing on the cake!
Key Features
Isolated lending pools
Asset risk has been a major source of hacks in DeFi, as we have seen entire protocols being drained as a result of one bad asset being added to the pool. Isolated pools segregate this risk. Our lending pool vault is implemented on top of the ERC-4626 token (standardized token vault) which makes it highly composable with other DeFi protocols.
CHEDDA Staking
CHEDDA token holders can stake their tokens to earn xCHEDDA (Staked CHEDDA).
- xCHEDDA is also an ERC4626 token that represents a token holder's portion of the staking pie.
- 15% of new token emission goes to stakers.
Governance through VE Token model
To further engage our token holders and incentivize participation, 85% of token emission goes to liquidity providers and token holders who lock their token for extended periods (1 week to 3 years). This is inspired by Curve Finance veCRV token.
- Lock xCHEDDA to get veCHEDDA. veCHEDDA represents voting power .
- Vote on directing CHEDDA token emission, with veCHEDDA representing the voting weight.
- Earn higher CHEDDA token rewards by holding a higher veCHEDDA token balance.
- Full on-chain governance with votes on other protocol decisions driven by veCHEDDA balance.
- Locking xCHEDDA for periods reduces the supply in circulation.
How we built it
Blood, sweat and hard work!
Challenges we ran into
Creating a DeFi protocol from scratch is a complex endeavour. Finding product-market fit was always a challenge and we had to pivot a couple times to arrive at the product we have now. We continue to evolve to stay ahead of industry trends.
Accomplishments that we're proud of
We took inspiration from existing lending protocols and came up with an innovate and original solution, not forked from other protocols.
We were the recipient of a Polygon Ecosystem DAO grant in February. The product was very different at the time. We then implemented an NFT P2P lending solution before scrapping that in favour of a more superior lending pool based architecture we have today.
We participated in and won the Oasis Bloom Hackathon which was a great boost to our project. We hope to solidify our place as one of the promising emerging DeFi protocol to look out for. We have since then, implemented the NFT collateralization functionality, and continue to build our product as we prepare for public reveal.
What we learned
We learned that building a DeFi protocol from the ground up is an exciting endeavour. We learned from the industry leaders and improved upon existing solutions to solve lingering problems in the industry in innovative ways.
What's next for Chedda Protocol
We plan on adding features to enrich our user experience, and further engage our token holders.
- We also plan on adding multi-chain support utilizing Layer Zero omnichain framework.
- Apply yield optimizing strategies to assets under management to increase yield and capital efficiency.
- We need to grow our team as we head towards a live mainnet product launch.
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