/protocol-mvp

NGNx Stablecoin protocol

Primary LanguageTypeScript

Onboard Protocol 🏦

This repository contains the core mvp smart contract code for Onboard Protocol. This is a high level description of the system, assuming familiarity with the basic economic mechanics as described in the one pager.

Design Considerations

  • Token agnostic

    • system doesn't care about the implementation of external tokens
    • can operate entirely independently of other systems, provided an authority assigns initial collateral to users in the system and provides price data.

  • Verifiable

    • designed from the bottom up to be amenable to formal verification
    • the core vault and balance database makes no external calls and contains no precision loss (i.e. no division)

  • Modular

    • multi contract core system is made to be very adaptable to changing requirements.
    • allows for implementations of e.g. auctions, liquidation, Debpt position risk conditions, to be altered on a live system.
    • allows for the addition of novel collateral types (e.g. whitelisting)

Collateral, Adapters and Wrappers 💶

Collateral is the foundation of NGNx and NGNx creation is not possible without it. There are many potential candidates for collateral, whether native ether, ERC20 tokens, other fungible token standards like ERC777, non-fungible tokens, or any number of other financial instruments. For now, our focus is on stablecoin collaterals.

Token wrappers are one solution to the need to standardise collateral behaviour in NGNx. Inconsistent decimals and transfer semantics are reasons for wrapping. For example, the WETH token is an ERC20 wrapper around native ether.

In the protocol, we abstract all of these different token behaviours away behind Adapters.

Adapters manipulate a single core system function: modifyCollateralBalance, which modifies user collateral balances.

Adapters should be very small and well defined contracts. Adapters are very powerful and should be carefully vetted by IDEALLY BY $OSN holders. Some examples are given in adapter.sol. Note that the adapter is the only connection between a given collateral type and the concrete on-chain token that it represents.

There can be a multitude of adapters for each collateral type, for different requirements. For example, ETH collateral could have an adapter for native ether and also for WETH.