Watch NFT-based CDP (Collateralized Debt Position)

This is a smart contract that allow a user to borrow the WatchSignals Token (WST) by depositing the own luxury watch (Watch NFT) as a collateral.

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Inspiration

  • MakerDAO's CDP (MCD)
  • Liquity's Trove


What it does

  • This is a smart contract that allow a user to borrow the WatchSignals Token (WST) by depositing the own luxury watch (Watch NFT) as a collateral.

    • A user create a Watch NFT based on their own luxury watch and its luxury watch price.
      • Current luxury watch price is retrieved by the WatchSignals Luxury Watch Price Oracle via chainlink.
    • A user deposit a Watch NFT into the WatchCDP Pool.
    • By depositing a Watch NFT, a user can borrow the WatchSignals Token (WST) from the WatchCDP Pool.
      • A user can borrow WST until 60% of the watch price of the collateralized-watch NFT.
      • This depositing (collateral) and borrowing structure is simlar to MakerDAO's CDP (MCD).
    • When a user above repay, a user repay the WatchSignals Token (include principal + interest ) to the WatchCDP Pool.
      • Once a user finish to repay, a user can withdraw deposited-watch NFT from the WatchCDP Pool.


  • the WatchSignals Token (WST) is ERC20 token that is original token of the WatchSignals.



How we built it


Challenges we ran into

  • Tokenization of the Luxury Watch.
  • Use the Luxury Watch as a collateralized-asset (underlying asset).
  • Borrow tokens by depositing the NFT of the Luxury Watch as a collateral.


Accomplishments that we're proud of

  • Create scheme to borrow tokens by depositing the real-asset (Luxury Watch).


What we learned

  • How to use the WatchSignals Luxury Watch Price Oracle via chainlink.


What's next for Watch NFT-based CDP (Collateralized Debt Position)

  • Deploy those contracts onto the Arbitrum (Layer2).
  • Liquity mining for bootstrapping the WatchSignals Token (WST). (e.g. By using the Onsen program of Sushiswap, 1inch's liquidity mining program, etc...)

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