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https://github.com/divin3circle/liquid-x

Unlock the full potential of your digital assets with LiquidX, a revolutionary liquidity defragmentation platform built on Polygon. Seamlessly optimize and consolidate liquidity across multiple pools, enhance trading efficiency, and maximize returns. Experience next-level liquidity management with advanced algorithms and cross-chain capabilities.
https://github.com/divin3circle/liquid-x

base ethereum evm-blockchain graphql optimism polygon thirdweb web3js

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Unlock the full potential of your digital assets with LiquidX, a revolutionary liquidity defragmentation platform built on Polygon. Seamlessly optimize and consolidate liquidity across multiple pools, enhance trading efficiency, and maximize returns. Experience next-level liquidity management with advanced algorithms and cross-chain capabilities.

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README 

        
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# Liquid-X



  Liquid-X Banner




**Liquid-X** is a cross-chain lending and borrowing application built on the **Optimism**, **Base**, and **Polygon** blockchains. The protocol is designed to offer seamless asset transfers and decentralized finance (DeFi) services across multiple blockchain networks. By leveraging advanced technologies such as **Chainlink CCIP** for cross-chain interoperability, **GraphQL** for efficient data querying, **Web3.js** for frontend and backend integration, and **Foundry** for smart contract development, Liquid-X aims to create a fluid and user-friendly DeFi experience.



## Key Features



- **Cross-Chain Compatibility**: Effortlessly borrow and lend assets across Optimism, Base, and Polygon networks.

- **Three Core Smart Contracts**:

  - **Minter**: Handles minting of protocol-specific tokens.

  - **MainRouter**: Facilitates communication and data exchange between supported blockchains.

  - **Depositor**: Manages collateral deposits securely, ensuring a robust lending and borrowing mechanism.

- **Burn-and-Mint Bridging Mechanism**: Allows seamless asset bridging between different blockchain networks, ensuring liquidity and security.

- **GraphQL Integration**: Utilizes GraphQL to enable fast and efficient querying of data from on-chain contracts.

- **Web3.js Integration**: Provides a robust framework for Web3 functionalities, supporting both frontend and backend operations.

- **Chainlink CCIP**: Utilizes Chainlink Cross-Chain Interoperability Protocol (CCIP) to enable secure, scalable, and decentralized token transfers across multiple blockchain networks.



## Architecture Overview



Liquid-X is built around a modular architecture that ensures scalability and flexibility:



1. **Minter**: This smart contract is responsible for minting new tokens in the Liquid-X ecosystem, which can be used as collateral or for liquidity provision.

2. **MainRouter**: Acts as the backbone of the protocol, managing communication and data flow between different blockchains. It orchestrates cross-chain transactions and ensures that data integrity is maintained across all networks.

3. **Depositor**: Manages the depositing of collateral onto the protocol. It ensures the security and transparency of collateral management, which is crucial for maintaining trust and stability within the system.



The **burn-and-mint** mechanism enables the bridging of assets by burning tokens on the source blockchain and minting them on the destination blockchain, facilitating a smooth and secure cross-chain experience using **Chainlink CCIP**.



### ER Diagram



Below is an ER Diagram representing the key entities and their relationships within the Liquid-X protocol:



![ER Diagram](/images/fllow.png)



## Real World Asset (RWA) Integration



Liquid-X is moving towards integrating **Real World Assets (RWAs)** as collateral options to enhance its offering and bridge the gap between traditional finance and decentralized finance. By tokenizing traditional assets, Liquid-X aims to provide a diversified range of collateral options, improve stability, and attract a broader user base.



### How RWAs are Integrated into the Protocol



1. **Tokenization of RWAs**: Traditional assets such as real estate, invoices, commodities, and others are tokenized on a secure blockchain platform. These tokenized assets are represented as ERC-20 or ERC-721 tokens on the Liquid-X platform.



2. **Smart Contract Integration**: The Liquid-X protocol integrates smart contracts to manage these tokenized RWAs. The smart contracts handle the storage, transfer, and valuation of the assets while ensuring compliance with regulatory requirements.



3. **Chainlink Oracle Integration**: To ensure that RWAs maintain accurate and real-time valuations, Liquid-X utilizes **Chainlink Data Feeds**. Chainlink oracles securely provide price data from various real-world data sources, ensuring that tokenized assets are valued correctly and transparently.



4. **Collateral Management**: Users can deposit tokenized RWAs as collateral in the **Depositor** contract. The **Depositor** contract continuously monitors the value of these assets using Chainlink oracles. If the value of the collateral drops below a certain threshold, the contract triggers a liquidation process to protect the protocol from defaults.



5. **Cross-Chain Collateral Usage**: Utilizing **Chainlink CCIP**, Liquid-X allows tokenized RWAs to be used as collateral across multiple blockchain networks. This feature enables users to borrow against their tokenized assets on one blockchain while maintaining the collateral on another, enhancing flexibility and accessibility.



6. **Decentralized Credit Evaluation**: Liquid-X employs an AI-based credit scoring system, utilizing Chainlink Functions to fetch and analyze a user's DeFi activities across multiple chains. The credit score influences the Loan-to-Value (LTV) ratio, impacting how much users can borrow against their tokenized RWAs.



### Benefits of RWA Integration



- **Increased Collateral Options**: Provides a more diverse range of assets to use as collateral, reducing reliance on volatile crypto assets.

- **Lower Risk and Higher Stability**: RWAs tend to be less volatile, offering a more stable form of collateral that mitigates risks in the crypto markets.

- **Broader Access to Liquidity**: Allows liquidity providers and borrowers to access a wider range of assets, enhancing liquidity and usability.



## Go-to-Market Strategies



Liquid-X's initial support will focus on commonly used tokens such as ETH, USDT, USDC, and WBTC for collaterals. This strategy aims to build trust and demonstrate the efficacy of the protocol by starting with well-known and widely accepted tokens.



## Future Development



- Transition to a DAO: Decentralize protocol governance to ensure community-driven growth.

- Enhanced AI Credit System: Upgrade the AI credit scoring system into a DePin platform for developers and users.

- Further Blockchain Integration: Extend support to more EVM and non-EVM chains to increase cross-chain compatibility.



## Detailed Implementation Plan



### Initial Development Phase

- **Protocol Design**: Establish foundational architecture integrating Chainlink technologies.

- **Smart Contracts**: Develop and deploy contracts for handling deposits, borrowing, and collateral management.

- **Credit Score Algorithm**: Implement the AI-based credit scoring system.



### Testing and Security

- **Testnet Deployment**: Conduct rigorous testing on testnets to identify potential issues.

- **Security Audits**: Perform comprehensive security audits to ensure the protocol's safety.



### Mainnet Launch

- **Token Integration**: Enable support for ETH, USDT, USDC, and WBTC as collateral.

- **Partnerships**: Form partnerships with DeFi projects and exchanges for enhanced liquidity.



### User Acquisition and Growth

- **Marketing Campaigns**: Launch targeted campaigns to attract users and liquidity providers.

- **Incentive Programs**: Offer incentives like liquidity mining and rewards for early adopters.



## Bounties Targeting



### 1. The Graph & GraphQL



- Implement GraphQL for efficient data querying from Uniswap tvl data

- Integrate The Graph for blockchain data indexing

- Developed subgraphs that indexed Liquid-X's lending and borrowing events



#### Subgraph Development



1. [liquidx-addresses](https://thegraph.com/studio/subgraph/liquidx-adresses/endpoints)

1. [liquidx-burns](https://api.studio.thegraph.com/proxy/88585/liquidx/version/latest/graphql)

1. [pricefeedsv0.0.1](https://api.studio.thegraph.com/proxy/88585/pricefeeds-liquidx-v1/v0.0.1/graphql)



### 2. Optimism



- Deployed LiquidX subgraphs on the Optimism testnet

- LiquidX main router is deployed on the Optimism mainnet, hence all communication between other EVM chains and LiquidX is done through the Optimism chain.



### 3. Base



- Depositor and minter contracts are deployed on the Base testnet, allowing users to borrow and deposit assets on the Base chain without selling their assets on other chains.



### Web3JS



- Web3JS is used to interact with the blockchain and the smart contracts.

- Deployed LiquidX on fleek

- Implemented namespace to set custom names representing addresses



### SafariDAO



- The project implements a robust protocol for cross-chain lending and borrowing, providing users with the ability to lend and borrow assets across different blockchain networks that plans to add RWAs as collateral to allow more users to access DeFi.

- The project is designed to be a decentralized and secure platform for lending and borrowing assets across different blockchain networks, providing users with the ability to lend and borrow assets across different blockchain networks.



## Contributing



We welcome contributions from the community! Please feel free to submit a pull request or open an issue.



## License



This project is licensed under the MIT License. See the [LICENSE](LICENSE) file for details.



## Additional Documentation



For more detailed information about contracts, please refer to the [Contracts README](./contracts/ContractsReadme.md).



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