https://github.com/roudra323/foundry_stablecoin
A fully decentralized, exogenously collateralized stablecoin system pegged to the US Dollar
https://github.com/roudra323/foundry_stablecoin
blockchain smart-contracts stablecoin
Last synced: 4 months ago
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A fully decentralized, exogenously collateralized stablecoin system pegged to the US Dollar
- Host: GitHub
- URL: https://github.com/roudra323/foundry_stablecoin
- Owner: roudra323
- Created: 2024-05-06T14:24:59.000Z (over 1 year ago)
- Default Branch: main
- Last Pushed: 2025-04-24T19:17:26.000Z (6 months ago)
- Last Synced: 2025-06-06T11:07:54.935Z (4 months ago)
- Topics: blockchain, smart-contracts, stablecoin
- Language: Solidity
- Homepage:
- Size: 29.3 KB
- Stars: 1
- Watchers: 1
- Forks: 0
- Open Issues: 0
-
Metadata Files:
- Readme: README.md
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README
# Decentralized Stablecoin (DSC)
A fully decentralized, exogenously collateralized stablecoin system pegged to the US Dollar.
## Overview
DSC (Decentralized Stablecoin) is an algorithmic stablecoin designed to maintain a 1:1 peg with the US Dollar. It's:
- **Exogenously Collateralized**: Backed by assets outside the protocol (WETH, WBTC)
- **Dollar Pegged**: Maintains a target value of $1 USD
- **Algorithmically Stable**: Uses code-based mechanisms to maintain stability
- **Overcollateralized**: Always maintains collateral value greater than the minted stablecoin value
This system is similar to MakerDAO's DAI but with simpler mechanics: no governance, no fees, and only WETH and WBTC as collateral.
## Smart Contracts
### DSCEngine.sol
The core contract that manages the minting, burning, and liquidation processes:
- Handles collateral deposits and withdrawals
- Controls the minting and burning of DSC tokens
- Manages liquidations for undercollateralized positions
- Maintains the health factor (collateralization ratio) for all users
### DecentralizedStableCoin.sol
The ERC20 token implementation of the stablecoin:
- Implements standard ERC20 functionality
- Adds burn functionality for redemption
- Controlled by the DSCEngine contract
## Key Features
### Collateralization System
- **Minimum Health Factor**: 1.0 (representing 100%)
- **Liquidation Threshold**: 50% (positions must maintain 200% collateralization)
- **Liquidation Bonus**: 50% bonus for liquidators
### Liquidation Process
When a user's position becomes undercollateralized (health factor < 1.0):
1. Any user can trigger liquidation
2. The liquidator pays back some of the user's debt
3. In return, they receive an equivalent amount of collateral plus a bonus
4. This process helps maintain the protocol's overall solvency
### Price Feeds
Uses Chainlink price feeds to obtain reliable collateral valuations.
## Functions
### User Operations
- `depositeCollateralAndMintDSC`: Deposit collateral and mint DSC in one transaction
- `depositeCollateral`: Deposit supported tokens as collateral
- `redeemCollateralForDsc`: Burn DSC and redeem collateral in one transaction
- `redeemCollateral`: Withdraw collateral (subject to maintaining health factor)
- `mintDsc`: Mint new DSC tokens (subject to collateralization requirements)
- `burnDsc`: Burn DSC tokens
### Liquidation
- `liquidateDsc`: Liquidate undercollateralized positions
### View Functions
- `getHealthFactor`: Check a user's health factor
- `getAccountCollateralValueInUSD`: Get the USD value of a user's collateral
- `getAccountInformation`: Get a user's DSC debt and collateral value
## Getting Started
### Prerequisites
- Node.js and npm
- Foundry/Forge for testing
### Installation
1. Clone the repository:
```bash
git clone https://github.com/your-username/dsc-stablecoin.git
cd dsc-stablecoin
```
2. Install dependencies:
```bash
npm install
```
3. Compile contracts:
```bash
forge build
```
### Testing
Run the test suite:
```bash
forge test
```
### Deployment
Deploy to a local network:
```bash
forge script script/DeployDSC.s.sol --rpc-url http://localhost:8545 --broadcast
```
## Security Considerations
- The system is designed to be overcollateralized at all times
- Liquidation mechanisms help maintain solvency
- Price feed oracles are checked for staleness
- Reentrancy protection is implemented
## License
This project is licensed under the MIT License - see the LICENSE file for details.
## Author
[@roudra323](https://github.com/roudra323)