Crypto Bond Bank

Inspiration

Motivation: For unsophisticated crypto investors, there are very limited ways to generate passive income that is safe and predictable. Currently most methods for generating passive income has come from Cefi protocols such as Celcius, Crypto.com, and Blockfi. Recent events has proven that these institutions are not trustworthy, as they were able to hide their insolvency from the public; It is clear that there is a need for decentralized, on-chain bonds for investors. This project aims to make this process simple by allowing fund managers to offer investors a crypto bonds (ERC1155 token) that provides that exposure to the market. In this project, we will use Aave and integrate their WETH gateway contract to show a working example of how the bonds will work.

What it does

This allows Administrator to issue a specific type of Bond. This bond automatically supplies native ETH into Aave where they generate interest in the form of aWETH tokens. The Admin has the ability to change the maturity date of the bond as well as the number of bonds to issue.

How we built it

We utilized the Aave WETH gateway contract. And we also used chainlink automation to automatically withdraw funds from Aave so that it is ready for investors to collect.

Challenges we ran into

Finding the right defi protocol to integrate. For this hackathon, we needed a defi protocol that was not only relatively easy to not only integrate but also to test. Also, making sure the each investor receives the correct amounts of funds.

Accomplishments that we're proud of

We are proud to be able to create a working idea of how a crypto bond can work. I really felt that this was really needed in the space after recent scandals.

What we learned

We learned that automating Defi integration is difficult. There are limitations on what one can do within one transaction. Also finding a base logic that could be used to effectively calculate the correct amount to be given to each user when the bond matures.

What's next for Crypto Bond Bank

Expansion by allowing Admins to create different kinds of bonds, and adding more token support i.e. including multiple tokens within one bond. Also planning to add the ability to create crypto ETFs where bonds can represent

What it does

Built With

Submitted to

Chainlink Fall 2022 Hackathon

Created by

I acted as a solution designer who worked on integrating frontend and backend,
I was oversee the scope of the project,
did research on Aave which was new for me.
I have written code contributing to both backend and frontend projects and am also
am responsible to test out the contract, refine the events emitted
by different methods in contract.
Continously providing inputs when backend/frontend devs deviate from original scope and
prevent project expansion.
Frontend navigation, contract deployment, interaction with onchain network contract,
frequently updating readme, create video for demo.

It was a very good experience.

Harish G Krishna
I wrote and managed the entire back end solidity code for the project.

I did research and also integrated the Aave protocol. I also implemented the ERC11155 standard as well as the base logic for the project. Assisted with implementing chainlink automation. Successfully debugged numerous issues that cropped up during the hackathon.

I also conducted stress tests locally, on mainnet forks, and live testnets to make sure that the project was working as intended.

Joel Joubert
I worked on both backend and frontend codes for the project.

For backend, I did POC on Chainlink Automation, integrate it with our backend contract code, and verify automation results. At the same time, I added hardhat-deploy plugin to work with hardhat-toolkit for easier smart contract deployments.

For frontend, I gave suggestions on UX flow, designed & implemented UI look and feel with Next.JS/Typescript. Also, I used Wagmi to integrate with smart contracts for fetching data from blockchain & display on UI.

Nikko Luo
Full Stack Smart Contracts & JavaScript Developer - looking for web3 opportunities