DeFi Stablecoin Protocol with Algorithmic Stabilization

A decentralized finance protocol featuring a collateral-backed stablecoin with algorithmic stabilization mechanisms, governance token integration, and automated monetary policy adjustments.

Key Features

• Collateralized Stablecoin (SimStable)
• Governance Token (SimGov) Ecosystem
• Dynamic Collateral Ratio Adjustments
• Automated Buyback/Rebuy Mechanisms
• Price-Stabilization Algorithms
• Uniswap V2 Integration for Price Oracles
• Reentrancy-Protected Operations
• Comprehensive Test Coverage

Contracts Overview

Core Contracts

Contract	Description
CentralVault	Main controller managing minting/redeeming, collateral ratios, and stabilization mechanisms
SimStable	ERC20 Stablecoin with transfer-triggered stabilization
SimGov	Governance token with vault-controlled mint/burn

Support Contracts

Contract	Purpose
MockERC20	Test collateral token implementation
MockUniswapV2Pair	Uniswap V2 pair simulation for testing
IUniswapV2Pair	Interface for Uniswap V2 interactions

Key Mechanisms

1. Minting System

   • Collateral + SimGov burning → SimStable minting
   • Dynamic collateral ratio enforcement
   • Real-time price feed integration

2. Redemption Engine

   • SimStable burning → Collateral + SimGov minting
   • Proportional collateral distribution
   • Price-aware calculations

3. Stabilization Features

   • Automatic CR adjustments based on price deviation
   • Buyback mechanism for excess collateral
   • Re-collateralization protocol for system health

Getting Started

Prerequisites

• Node.js v16+
• Hardhat
• Git

Installation

git clone https://github.com/<your-repo>.git
cd defi-stablecoin-system
npm install

Test Suite

npx hardhat test

Deployment

npx hardhat run scripts/deploy.js --network <network>

Architecture Diagram

graph TD
    A[User] -->|Mint| B[CentralVault]
    A -->|Redeem| B
    B --> C[SimStable]
    B --> D[SimGov]
    B --> E[CollateralToken]
    C -->|Price Feed| F[Uniswap Pair]
    D -->|Price Feed| G[Uniswap Pair]

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Future Improvements

Protocol Enhancements

• Upgradeability: Implement proxy pattern for contract updates
• DAO Governance: Add voting for parameter adjustments
• Advanced Oracles: Chainlink integration for price feeds
• Cross-Chain: Bridge support for multi-chain operations
• Liquidity Mining: Incentivize protocol participation

Security Improvements

• Timelock Controller: For sensitive operations
• Multi-Sig Wallets: For privileged actions
• Formal Verification: Certora/Scribble integration
• Bug Bounty Program: Crowdsourced security testing

Feature Roadmap

• Debt Market: Create secondary markets for positions
• Stability Pool: Liquidations backstop fund
• Insurance Fund: Protocol-owned liquidity reserve
• Advanced CR Models: Machine learning integration

Security Audit Status

⚠️ Warning: This code is unaudited and for educational purposes only. Use at your own risk.

License

MIT License - see LICENSE for details