0xbuidlman/pensify

Pensify is a secure, non-custodial and risk-minimised Pension Fund built on Ethereum blockchain.

Pensify

Pensify is a secure, non-custodial, no-loss and no-risk Pension Fund built on Ethereum blockchain. By using Robo-Advisor for Yield (RAY) from Staked.US, Fund constantly generates interest from different DeFi protocols - Compound, Aave, dYdX, Fulcrum (latest is turned off atm), MCD, DSR. Members can also use Flash Loans to earn additional income via a browser bot for automatic arbitrage between Uniswap and Balancer pools. The fund is built using AkropolisOS framework, which allows automated liquidity provision enabled by the bonding curve, treasury management & automated yield rebalancing.

• We used AkropolisOS framework (https://akropolis.io) to build a basic architecture for Pensify. It is based on OpenZeppelin (http://openzeppelin.io) and allows automated liquidity provision enabled by the bonding curve, treasury management & automated yield rebalancing.
• To enable mobile support, we used Portis Wallet (https://www.portis.io). It provides secure storage and access to Pensify from any device.
• We use Uniswap (https://uniswap.exchange) and Balancer (https://balancer.finance) protocols as a part of arbitrage strategies for fund members. They can earn additional income by utilizing Flash Loans and performing arbitrage between Uniswap and Balancer.
• We use Compound and Aave (https://compound.finance) and Aave (https://aave.com) as an interest source through rebalancer - Robo Yield Advisor (https://staked.us/v/robo-advisor-yield/) from Staked.Us. It allows us to accumulate interest on all Pensify funds.

Mainnet deployment (https://pensionfund.fi)

External contracts

• DAI: 0x6b175474e89094c44da98b954eedeac495271d0f
• cDAI: not used
• RAY Storage: 0x446711e5ed3013743e40342a0462fbdc437cd43f

Pool contracts

• Pool: 0x3501d2c95F8dB9A94E0f0BCD15E2a440C71ceaE4
• AccessModule: 0x3f2ced4322ecfd1a77fc972bd6d690cf632ba09c
• PToken: 0x764112eCFFDdB111f78e9475d70010fD1120257f
• CurveModule: 0xa6d9d61c6637e8d1ab1f535baabb53e756559cdc
• CompoundModule: not deployed
• RAYModule: 0xEEbaf85E5452F11e33e059ADb3F2F10E748a3562
• FundsModule: 0x1dEA32aAd5Ef531538CdC7eab515072aBc65d855
• PensionFundModule: 0x23b1Fb463a87815F6f8714bc4af9Ce8214C4c748
• FlashLoansModule: 0x7cD7833930E7fb43Fc4F221eBfFE3eFAE39D1442
• ArbitrageModule: 0x6E2CFb462D04b2385fE5d1D16A6e0A8154fd201e

Testnet (Kovan) deployment (https://kovan.pensionfund.fi)

External contracts

• DAI: 0x4f96fe3b7a6cf9725f59d353f723c1bdb64ca6aa
• cDAI: 0xe7bc397dbd069fc7d0109c0636d06888bb50668c
• RAY Storage: not used

Pool contracts

• Pool: 0xBc4C64C8F5838C4A7e10Ac9bB0b606D3AD4c8809
• AccessModule: 0x790C6cAB44C0ff8311E5F501d36b57B2aD18e9C9
• PToken: 0xcC64F821A6C32884C0648C12E62585FdBC7bA082
• CurveModule: 0xBA9d498AA8d650b9ce38D6cE5B0d6539d254A3e8
• CompoundModule: 0xDc6b5507647137B663fe81C4aBA6912a88eF9F73
• RAYModule: not deployed
• FundsModule: 0x29518F102cC748d30178e1fB6215f2BEF4a85b86
• PensionFundModule: 0x03843c8a5b7A6c4F563CF5514E53286A7f934ea0
• FlashLoansModule: 0x310879fEf4e301425336eBC2f58C29bd5127d174
• ArbitrageModule: 0x220F8d93889fD51528b7b119FF7C9a10149EbCf2

Developer tools

• Openzeppelin SDK
• Openzepplin Contracts
• Truffle

Deployment

Required data:

• Address of liquidity token (LToken.address)
• Address of cDAI contract (cDAI.address)

Deployment sequence:

1. Initialize OpenZeppelin project & add modules
   1. npx oz init
   2. npx oz add Pool AccessModule PToken CompoundModule DefiFundsModule CurveModule LiquidityModule LoanLimitsModule LoanProposalsModule LoanModule
2. Deploy & initialize Pool
   1. npx oz create Pool --network kovan --init
   2. Save address of the pool (Pool.address)
3. Deploy modules
   1. npx oz create AccessModule --network kovan --init "initialize(address _pool)" --args Pool.address
   2. npx oz create PToken --network kovan --init "initialize(address _pool)" --args Pool.address
   3. npx oz create CurveModule --network kovan --init "initialize(address _pool)" --args Pool.address
   4. npx oz create CompoundModule --network kovan --init "initialize(address _pool)" --args Pool.address
   1. npx oz create DefiFundsModule --network kovan --init "initialize(address _pool)" --args Pool.address
   2. npx oz create PensionFundModule --network kovan --init "initialize(address _pool)" --args Pool.address
   3. npx oz create FlashLoansModule --network kovan --init "initialize(address _pool)" --args Pool.address
   4. npx oz create ArbitrageModule --network kovan --init "initialize(address _pool)" --args Pool.address
   5. Save address of each module: AccessModule.address, PToken.address, CurveModule.address, CompoundModule.address, DefiFundsModule.address, LiquidityModule.address, FlashLoansModule.address, ArbitrageModule.address
4. Register external contracts in Pool
   1. npx oz send-tx --to Pool.address --network kovan --method set --args "ltoken, LToken.address, false"
   2. npx oz send-tx --to Pool.address --network kovan --method set --args "cdai, cDAI.address, false"
5. Register modules in pool
   1. npx oz send-tx --to Pool.address --network kovan --method set --args "access, AccessModule.address, false"
   2. npx oz send-tx --to Pool.address --network kovan --method set --args "ptoken, PToken.address, false"
   3. npx oz send-tx --to Pool.address --network kovan --method set --args "defi, CompoundModule.address, false"
   1. npx oz send-tx --to Pool.address --network kovan --method set --args "curve, CurveModule.address, false"
   2. npx oz send-tx --to Pool.address --network kovan --method set --args "funds, DefiFundsModule.address, false"
   3. npx oz send-tx --to Pool.address --network kovan --method set --args "liquidity, PensionFundModule.address
   4. npx oz send-tx --to Pool.address --network kovan --method set --args "flashloans, FlashLoansModule.address, false
   5. npx oz send-tx --to Pool.address --network kovan --method set --args "arbitrage, ArbitrageModule.address, false"
6. Configure modules
   1. npx oz send-tx --to DefiFundsModule.address --network kovan --method addFundsOperator --args PensionFundModule.address
   2. npx oz send-tx --to DefiFundsModule.address --network kovan --method addFundsOperator --args FlashLoansModule.address
   3. npx oz send-tx --to PToken.address --network kovan --method addMinter --args DefiFundsModule.address
   4. npx oz send-tx --to CompoundModule.address --network kovan --method addDefiOperator --args DefiFundsModule.address
7. Configure fee (optional)
   1. npx oz send-tx --to CurveModule.address --network kovan --method setWithdrawFee --args 5
   2. npx oz send-tx --to FlashLoansModule.address --network kovan --method setFee --args 100000000000000

Liquidity

Deposit

Required data:

• lAmount: Deposit amount, DAI

Required conditions:

• All contracts are deployed

Workflow:

1. Call FundsModule.calculatePoolEnter(lAmount) to determine expected PTK amount (pAmount)
2. Determine minimum acceptable amount of PTK pAmountMin <= pAmount, which user expects to get when deposit lAmount of DAI. Zero value is allowed.
3. Call LToken.approve(FundsModule.address, lAmount) to allow exchange
4. Call LiquidityModule.deposit(lAmount, pAmountMin) to execute exchange

Withdraw

Required data:

• pAmount: Withdraw amount, PTK

Required conditions:

• Available liquidity LToken.balanceOf(FundsModule.address) is greater than expected amount of DAI
• User has enough PTK: PToken.balanceOf(userAddress) >= pAmount

Workflow:

1. Call FundsModule.calculatePoolExitInverse(pAmount) to determine expected amount of DAI (lAmount). The response has 3 values, use the second one.
2. Determine minimum acceptable amount lAmountMin <= lAmount of DAI , which user expects to get when deposit pAmount of PTK. Zero value is allowed.
3. Call PToken.approve(FundsModule.address, pAmount) to allow exchange
4. Call LiquidityModule.withdraw(pAmount, lAmountMin) to execute exchange

Credits

Create Loan Request

Required data:

• debtLAmount: Loan amount, DAI
• interest: Interest rate, percents
• pAmountMax: Maximal amount of PTK to use as borrower's own pledge
• descriptionHash: Hash of loan description stored in Swarm

Required conditions:

• User has enough PTK: PToken.balanceOf(userAddress) >= pAmount

Workflow:

1. Call FundsModule.calculatePoolExitInverse(pAmount) to determine expected pledge in DAI (lAmount). The response has 3 values, use the first one.
2. Determine minimum acceptable amount lAmountMin <= lAmount of DAI, which user expects to lock as a pledge, sending pAmount of PTK. Zero value is allowed.
3. Call PToken.approve(FundsModule.address, pAmount) to allow operation.
4. Call LoanModule.createDebtProposal(debtLAmount, interest, pAmountMax, descriptionHash) to create loan proposal.

Data required for future calls:

• Proposal index: proposalIndex from event DebtProposalCreated.

Add Pledge

Required data:

• Loan proposal identifiers:
  • borrower Address of borrower
  • proposal Proposal index
• pAmount Pledge amount, PTK

Required conditions:

• Loan proposal created
• Loan proposal not yet executed
• Loan proposal is not yet fully filled: LoanModule.getRequiredPledge(borrower, proposal) > 0
• User has enough PTK: PToken.balanceOf(userAddress) >= pAmount

Workflow:

1. Call FundsModule.calculatePoolExitInverse(pAmount) to determine expected pledge in DAI (lAmount). The response has 3 values, use the first one.
2. Determine minimum acceptable amount lAmountMin <= lAmount of DAI, which user expects to lock as a pledge, sending pAmount of PTK. Zero value is allowed.
3. Call PToken.approve(FundsModule.address, pAmount) to allow operation.
4. Call LoanModule.addPledge(borrower, proposal, pAmount, lAmountMin) to execute operation.

Withdraw Pledge

Required data:

• Loan proposal identifiers:
  • borrower Address of borrower
  • proposal Proposal index
• pAmount Amount to withdraw, PTK

Required conditions:

• Loan proposal created
• Loan proposal not yet executed
• User pledge amount >= pAmount

Workflow:

1. Call LoanModule.withdrawPledge(borrower, proposal, pAmount) to execute operation.

Loan issuance

Required data:

proposal Proposal index

Required conditions:

• Loan proposal created, user (transaction sender) is the borrower
• Loan proposal not yet executed
• Loan proposal is fully funded: LoanModule.getRequiredPledge(borrower, proposal) == 0
• Pool has enough liquidity

Workflow:

1. Call LoanModule.executeDebtProposal(proposal) to execute operation.

Data required for future calls:

• Loan index: debtIdx from event DebtProposalExecuted.

Loan repayment (partial or full)

Required data:

• debt Loan index
• lAmount Repayable amount, DAI

Required conditions:

• User (transaction sender) is the borrower
• Loan is not yet fully repaid

Workflow:

1. Call LToken.approve(FundsModule.address, lAmount) to allow operation.
2. Call LoanModule.repay(debt, lAmount) to execute operation.

PTK Distributions

When borrower repays some part of his loan, he uses some PTK (either from his balance or minted when he sends DAI to the pool). This PTKs are distributed to supporters, proportionally to the part of the loan they covered. The borrower himself also covered half of the loan, and his part is distributed over the whole pool. All users of the pool receive part of this distributions proportional to the amount of PTK they hold on their balance and in loan proposals, PTK locked as collateral for loans is not counted.

Distribution mechanics

When you need to distribute some amount of tokens over all token holders one's first straight-forward idea might be to iterate through all token holders, check their balance and increase it by their part of the distribution. Unfortunately, this approach can hardly be used in Ethereum blockchain. All operations in EVM cost some gas. If we have a lot of token holders, gas cost for iteration through all may be higher than a gas limit for transaction (which is currently equal to gas limit for block). Instead, during distribution we just store amount of PTK to be distributed and current amount of all PTK qualified for distribution. And user balance is only updated by separate request or when it is going to be changed by transfer, mint or burn. During this "lazy" update we go through all distributions occured between previous and current update. Now, one may ask what if there is too much distributions occurred in the pool between this updated and the gas usage to iterate through all of them is too high again? Obvious solution would be to allow split such transaction to several smaller ones, and we've implemented this approach. But we also decided to aggregate all distributions during a day. This way we can protect ourself from dust attacks, when somebody may do a lot of small repays which cause a lot of small distributions. When a distribution request is received by PToken we check if it's time to actually create new distribution. If it's not, we just add distribution amount to the accumulator. When time comes (and this condition is also checked by transfers, mints and burns), actual distribution is created using accumulated amount of PTK and total supply of qualified PTK.

Defi module distributions

Defi module transfers funds to some underlying protocol, Compound in current version. Exchange rate of DAI to Compound DAI is icreased over time. So while amount of Compound DAI stays same, amount of underlying DAI available is continiously increased. During distributions Defi module calculates this additional ammount, so that PTK holders can widhraw their share at any time.

Distribution mechanics

Defi module is configured to create distributions once a day. It stores time of next distribution and when time comes, any change of PTK balance or withdraw request will trigger a new distribution. With this distribution event Defi module stores how many additional DAI it can distribute, current balances of DAI and PTK. When one decides to withdraw (claim) his share of this additional DAI, Defi module iterates through all unclaimed distributions and calculates user's share of that distribution accroding to user's PTK balance and total amount of PTK at that time.