Fixed Rates Hub

Products overview
Fixed Rate Staking

Inspiration

Traditional finance portfolio managers look on DeFi opportunities. Since ETF for bitcoin was accepted the more new promises the market is seeking, like potential ETH ETF. On other hand Ethereum developers struggle enormous gas fees, what can ruin their business due to lack of predictability. That gap can be filled out by tools for back-office management I like to introduce to the market. Simple to use, easy to understand with self explanatory headline.

What it does

User can pick one or more of available strategies, each strategy is considered as obtaining position on complementary DeFi products which hedges the potential risk. For example, the first product which is Fixed Stake Rate Deposit for wstETH takes into account that interest paid by Lido for staking Ether is higher than interest taken by Aave for borrowing Ether. By leveraging that position using looping on Aave combined with flash loan and hedging potential drop of Lido staking interest rate I can offer complex product, and using hard data I can calculate fixed APR over time (28 days), taking these considerations even further, user can expect certain earnings in the end of the month. That's only one example.

How I built it

I took Vite + React to run front-end interface. User communicates directly with smart contract using any popular wallet. Each fixed rate product is considered as single interaction with smart contract, except ERC20 approvals. Smart contracts are deployed on Ethereum fork run by Tenderly. With the fork I don't need to use real tokens, keeping my environment reflecting real market situation.

Challenges I ran into

I managed to build a POC for the first product which is Fixed Stake Rate Deposit for wstETH. The challenges is to wrap all the actions in single transaction to provide satisfying user experience.

What I learned

Personally I've learn the technical details of DeFi protocols like Aave, Uniswap and IPOR. On my daily bases I do front-end, so I learned a lot of Solidity as well. The most powerful tool I used is flash loan which does not have any analogy in traditional finance. That's eye opening technique of DeFi native and I found real world case for it.

What's next for Fixed Rates Hub

The hub needs more products to attract users. Second one is Gas Optimiser, Fixed Rate Loans with competitive interest rates for stable coins like USDC, USDT, DAI.