The inception of ChainVault was motivated by the complexities and security concerns associated with converting Bitcoin into liquid assets. Traditional methods often compromise security or involve cumbersome bridging mechanisms. ChainVault addresses these challenges by offering a decentralized, secure, and user-friendly platform for Bitcoin liquidity. Key Features
Instant Liquidity Solutions: Mint stablecoins against ckBTC collateral with ease.
BTC to ckBTC Conversion: Direct BTC deposits are automatically converted to ckBTC, streamlining the process.
Compliance with ICRC-2 Standard: Ensures compatibility and interoperability within the ICP ecosystem.
Vault Management System: Users can effortlessly manage their vaults, loans, and collateral.
Robust Liquidation Mechanism: Maintains the integrity of the system and the peg of the stablecoin.
Architecture
ChainVault's architecture is built for robustness and scalability, utilizing the Azle framework (TypeScript) for the development of backend canisters. The system is composed of:
Oracle Canisters: Provide up-to-date ckBTC price data.
Deposit Module: Facilitates secure ckBTC or BTC deposits.
SynBase Canister: Serves as the foundation for the ICRC-2 compatible stablecoins.
Minter Canister: Manages the minting and burning processes of stablecoins.
Vault Manager Canister: Central to managing user vaults, collateral, and loans.
The frontend is developed with NextJs, integrated with the Bitfinity wallet for a seamless user experience, emphasizing usability and design. Project Overview
Objective: The ICP-ChainVault platform enables users to mint stablecoins, specifically cine USD (pegged to the US dollar), using CK BTC as collateral.
Target Audience: Users holding CK BTC who wish to leverage their holdings to mint stablecoins without selling their cryptocurrency.
How the Protocol Works
Collateral Token: CK BTC.
Stablecoin: cine USD, pegged 1:1 with the US dollar.
Interest Rate: Annual Percentage Interest (API) of 1.5%.
Maximum Loan-to-Value Ratio: 80%. Vaults exceeding this ratio are subject to liquidation.
Liquidation Charge: 0.5%, processed centrally for security reasons, with plans to decentralize.
Platform Features
Profile Section: Users can deposit CK BTC directly or convert BTC to CK BTC through a provided deposit address, which then gets automatically deposited into the ICP-ChainVault protocol.
Vault Management: Users can create vaults for borrowing, minting, or repaying debt, with options to manage collateral within these vaults. Vaults are user-specific and can be transferred with the creator's permission.
Process Flow
Vault Creation: Users can create a vault, which is essentially a container for managing their transactions and collateral.
Adding Collateral: Users add CK BTC as collateral to their vault.
Borrowing/Minting: Users can borrow cine USD against their collateral, effectively minting new stablecoins. The process involves an interest rate, emphasizing the borrowing aspect.
Repaying Debt: Users can repay their borrowed amount plus interest to manage their vault's loan-to-value ratio and avoid liquidation.
Interest and Staking: The interest collected from borrowers will eventually be redirected to staking pools, allowing other users to stake their stablecoins and earn interest.
Goals and Benefits
Liquidity Without Selling: ICP-ChainVault aims to provide liquidity to CK BTC holders without the need to sell their holdings on exchanges.
Secure and Efficient: By using CK BTC as collateral, users can efficiently mint stablecoins while maintaining security and control over their assets.
ICP-ChainVault presents a novel approach to leveraging cryptocurrency holdings for liquidity without direct selling. By focusing on CK BTC as collateral for minting stablecoins, it offers a secure and user-friendly platform for managing digital assets. The integration of features like vault management, collateral deposition, and interest-based borrowing outlines a comprehensive ecosystem for cryptocurrency liquidity and financial management. Development Challenges and Solutions Challenges
Implementing ICRC Standards: Developing a TypeScript implementation from scratch due to the lack of existing implementations.
Oracle Compatibility: Overcoming mainnet deployment issues related to IPV4 and IPV6 compatibility.
Complex System Design: Ensuring a balance between complex backend logic and a seamless user interface.
Accomplishments
Successful ICRC-2 Implementation: Demonstrating technical expertise and adherence to best practices.
Simplified User Experience: Streamlining the process of adding collateral and minting stablecoins.
Engaging UI Design: Creating an intuitive and visually appealing user interface.
Learnings
Leveraging ICP's Capabilities: Utilizing ICP for direct blockchain interactions and ckBTC integration.
Secure Smart Contract Development: Enhancing skills in developing secure and reliable DeFi protocols.
UI/UX Design: Gaining insights into creating user-friendly and aesthetically pleasing interfaces.
Future Roadmap
Security Enhancements: Conducting thorough security reviews and external audits.
Frontend Improvements: Further enhancing the user interface for an even smoother experience.
Decentralized Liquidation: Moving towards a more decentralized liquidation process.
Staking Mechanisms: Introducing staking protocols to add utility and promote stablecoin adoption.
Canister IDs
Oracle Canister: nhkh6-wiaaa-aaaal-qcdpq-cai
Deposit Module Canister: ivtqt-gqaaa-aaaal-qcdra-cai
SynBase Canister: i3r53-5aaaa-aaaal-qcdqa-cai
Minter Canister: i4q3p-qyaaa-aaaal-qcdqq-cai
Vault Manager Canister: isswh-liaaa-aaaal-qcdrq-cai