ChainVault is a pioneering decentralized finance (DeFi) protocol developed on the Internet Computer Protocol (ICP) platform, designed to unlock instant liquidity for Bitcoin holders. By leveraging the seamless integration of ICP with the Bitcoin network, ChainVault enables users to use ckBTC as collateral to mint stablecoins, providing a secure and efficient solution for liquidity without compromising the inherent security of the Bitcoin network.
project deployeed : https://chain-vault-front-lq0atklpo-samarabdelhameeds-projects.vercel.app/_app.html
Watch the presentation video on YouTube: Presentation Video
Watch the Frontend demo on YouTube: frontend Demo Video
Watch the backend demo on YouTube: Backend Demo Video
The inception of ChainVault was motivated by the complexities and security concerns associated with converting Bitcoin into liquid assets. Traditional methods often compromise security or involve cumbersome bridging mechanisms. ChainVault addresses these challenges by offering a decentralized, secure, and user-friendly platform for Bitcoin liquidity.
- Instant Liquidity Solutions: Mint stablecoins against ckBTC collateral with ease.
- BTC to ckBTC Conversion: Direct BTC deposits are automatically converted to ckBTC, streamlining the process.
- Compliance with ICRC-2 Standard: Ensures compatibility and interoperability within the ICP ecosystem.
- Vault Management System: Users can effortlessly manage their vaults, loans, and collateral.
- Robust Liquidation Mechanism: Maintains the integrity of the system and the peg of the stablecoin.
ChainVault's architecture is built for robustness and scalability, utilizing the Azle framework (TypeScript) for the development of backend canisters. The system is composed of:
- Oracle Canisters: Provide up-to-date ckBTC price data.
- Deposit Module: Facilitates secure ckBTC or BTC deposits.
- SynBase Canister: Serves as the foundation for the ICRC-2 compatible stablecoins.
- Minter Canister: Manages the minting and burning processes of stablecoins.
- Vault Manager Canister: Central to managing user vaults, collateral, and loans.
The frontend is developed with NextJs, integrated with the Bitfinity wallet for a seamless user experience, emphasizing usability and design.
- Objective: The ICP-ChainVault platform enables users to mint stablecoins, specifically cine USD (pegged to the US dollar), using CK BTC as collateral.
- Target Audience: Users holding CK BTC who wish to leverage their holdings to mint stablecoins without selling their cryptocurrency.
- Collateral Token: CK BTC.
- Stablecoin: cine USD, pegged 1:1 with the US dollar.
- Interest Rate: Annual Percentage Interest (API) of 1.5%.
- Maximum Loan-to-Value Ratio: 80%. Vaults exceeding this ratio are subject to liquidation.
- Liquidation Charge: 0.5%, processed centrally for security reasons, with plans to decentralize.
- Profile Section: Users can deposit CK BTC directly or convert BTC to CK BTC through a provided deposit address, which then gets automatically deposited into the ICP-ChainVault protocol.
- Vault Management: Users can create vaults for borrowing, minting, or repaying debt, with options to manage collateral within these vaults. Vaults are user-specific and can be transferred with the creator's permission.
- Vault Creation: Users can create a vault, which is essentially a container for managing their transactions and collateral.
- Adding Collateral: Users add CK BTC as collateral to their vault.
- Borrowing/Minting: Users can borrow cine USD against their collateral, effectively minting new stablecoins. The process involves an interest rate, emphasizing the borrowing aspect.
- Repaying Debt: Users can repay their borrowed amount plus interest to manage their vault's loan-to-value ratio and avoid liquidation.
- Interest and Staking: The interest collected from borrowers will eventually be redirected to staking pools, allowing other users to stake their stablecoins and earn interest.
- Liquidity Without Selling: ICP-ChainVault aims to provide liquidity to CK BTC holders without the need to sell their holdings on exchanges.
- Secure and Efficient: By using CK BTC as collateral, users can efficiently mint stablecoins while maintaining security and control over their assets.
ICP-ChainVault presents a novel approach to leveraging cryptocurrency holdings for liquidity without direct selling. By focusing on CK BTC as collateral for minting stablecoins, it offers a secure and user-friendly platform for managing digital assets. The integration of features like vault management, collateral deposition, and interest-based borrowing outlines a comprehensive ecosystem for cryptocurrency liquidity and financial management.
- Implementing ICRC Standards: Developing a TypeScript implementation from scratch due to the lack of existing implementations.
- Oracle Compatibility: Overcoming mainnet deployment issues related to IPV4 and IPV6 compatibility.
- Complex System Design: Ensuring a balance between complex backend logic and a seamless user interface.
- Successful ICRC-2 Implementation: Demonstrating technical expertise and adherence to best practices.
- Simplified User Experience: Streamlining the process of adding collateral and minting stablecoins.
- Engaging UI Design: Creating an intuitive and visually appealing user interface.
- Leveraging ICP's Capabilities: Utilizing ICP for direct blockchain interactions and ckBTC integration.
- Secure Smart Contract Development: Enhancing skills in developing secure and reliable DeFi protocols.
- UI/UX Design: Gaining insights into creating user-friendly and aesthetically pleasing interfaces.
- Security Enhancements: Conducting thorough security reviews and external audits.
- Frontend Improvements: Further enhancing the user interface for an even smoother experience.
- Decentralized Liquidation: Moving towards a more decentralized liquidation process.
- Staking Mechanisms: Introducing staking protocols to add utility and promote stablecoin adoption.
- Oracle Canister:
nhkh6-wiaaa-aaaal-qcdpq-cai - Deposit Module Canister:
ivtqt-gqaaa-aaaal-qcdra-cai - SynBase Canister:
i3r53-5aaaa-aaaal-qcdqa-cai - Minter Canister:
i4q3p-qyaaa-aaaal-qcdqq-cai - Vault Manager Canister:
isswh-liaaa-aaaal-qcdrq-cai
Clone the repository:
git clone https://github.com/samarabdelhameed/icp-chainvault.git
cd ChainVault-Frontnpm installnpm start
- Start the Local Network:
cd ChainVault-Backend dfx start
Running dfx start for version 0.16.1 Using the default definition for the 'local' shared network because /Users/s/.config/dfx/networks.json does not exist. Initialized replica. Dashboard: http://localhost:55431/_/dashboard
- Deploy the Oracle Canister:
Deploying: oracle Creating canisters... Creating canister oracle... oracle canister created with canister id: bd3sg-teaaa-aaaaa-qaaba-cai Building canisters... Executing 'npx azle oracle'
dfx deploy oracle
Building canister oracle
[1/2] 🔨 Compiling TypeScript... 17.95s [2/2] 🚧 Building Wasm binary... 101.99s
Done in 121.18s.
🎉 Built canister oracle at .azle/oracle/oracle.wasm.gz Installing canisters... Creating UI canister on the local network. The UI canister on the "local" network is "be2us-64aaa-aaaaa-qaabq-cai" Installing code for canister oracle, with canister ID bd3sg-teaaa-aaaaa-qaaba-cai Deployed canisters. URLs: Backend canister via Candid interface: deposit: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bkyz2-fmaaa-aaaaa-qaaaq-cai oracle: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bd3sg-teaaa-aaaaa-qaaba-cai
- Deploy the Deposit Canister:
Deploying: deposit Creating a wallet canister on the local network. The wallet canister on the "local" network for user "default" is "bnz7o-iuaaa-aaaaa-qaaaa-cai" Creating canisters... Creating canister deposit... deposit canister created with canister id: bkyz2-fmaaa-aaaaa-qaaaq-cai Building canisters... Executing 'npx azle deposit'
dfx deploy deposit
Building canister deposit
Initial build takes a few minutes. Don't panic. Subsequent builds will be faster.
[0/2] 🏗️ Preparing prerequisites... 68.63s [1/2] 🔨 Compiling TypeScript... 449.52s [2/2] 🚧 Building Wasm binary... 128.23s
Done in 647.01s.
🎉 Built canister deposit at .azle/deposit/deposit.wasm.gz Installing canisters... Creating UI canister on the local network. The UI canister on the "local" network is "br5f7-7uaaa-aaaaa-qaaca-cai" Installing code for canister deposit, with canister ID bkyz2-fmaaa-aaaaa-qaaaq-cai Deployed canisters. URLs: Backend canister via Candid interface: deposit: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bkyz2-fmaaa-aaaaa-qaaaq-cai oracle: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bd3sg-teaaa-aaaaa-qaaba-cai ➜ ChainVault-Backend git:(main) ✗
- Deploy the VaultManager Canister:
Deploying: vaultmanager Creating canisters... Creating canister vaultmanager... vaultmanager canister created with canister id: bw4dl-smaaa-aaaaa-qaacq-cai Building canisters... Executing 'npx azle vaultmanager'
dfx deploy vaultmanager
Building canister vaultmanager
[1/2] 🔨 Compiling TypeScript... 7.95s [2/2] 🚧 Building Wasm binary... 16.39s
Done in 25.08s.
🎉 Built canister vaultmanager at .azle/vaultmanager/vaultmanager.wasm.gz Installing canisters... Installing code for canister vaultmanager, with canister ID bw4dl-smaaa-aaaaa-qaacq-cai Deployed canisters. URLs: Backend canister via Candid interface: deposit: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bkyz2-fmaaa-aaaaa-qaaaq-cai oracle: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bd3sg-teaaa-aaaaa-qaaba-cai vaultmanager: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bw4dl-smaaa-aaaaa-qaacq-cai
- Deploy the SynthMinter Canister:
Deploying: synthMinter Creating canisters... Creating canister synthMinter... synthMinter canister created with canister id: b77ix-eeaaa-aaaaa-qaada-cai Building canisters... Executing 'npx azle synthMinter'
dfx deploy synthMinter
Building canister synthMinter
[1/2] 🔨 Compiling TypeScript... 6.33s [2/2] 🚧 Building Wasm binary... 14.40s
Done in 21.52s.
🎉 Built canister synthMinter at .azle/synthMinter/synthMinter.wasm.gz Installing canisters... Installing code for canister synthMinter, with canister ID b77ix-eeaaa-aaaaa-qaada-cai Deployed canisters. URLs: Backend canister via Candid interface: deposit: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bkyz2-fmaaa-aaaaa-qaaaq-cai oracle: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bd3sg-teaaa-aaaaa-qaaba-cai synthMinter: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=b77ix-eeaaa-aaaaa-qaada-cai vaultmanager: http://127.0.0.1:4943/?canisterId=br5f7-7uaaa-aaaaa-qaaca-cai&id=bw4dl-smaaa-aaaaa-qaacq-cai
-
Deploy the SynBase Canister with Argument: dfx identity get-principal
dfx deploy synbase --argument='(record { name = "Synthetic USD"; symbol = "SynUsd"; decimal = 8; fee = 10; permitted_drift_nanos = 86_400_000_000_000; transaction_window_nanos = 86_400_000_000_000; minting_account = (opt record { owner = principal "hkoto-7ykqd-y6gid-qvkx4-hxslt-lscav-zlc2f-nu7fx-movq2-v5ety-wqe"; subaccount = null; }); primary_account = (opt record { owner = principal "hkoto-7ykqd-y6gid-qvkx4-hxslt-lscav-zlc2f-nu7fx-movq2-v5ety-wqe"; subaccount = null; }); })'
ChainVault represents a significant advancement in the DeFi space, offering a novel and secure solution for Bitcoin liquidity on the ICP platform. By bridging the gap between Bitcoin and decentralized finance, ChainVault paves the way for innovative financial solutions that prioritize security, efficiency, and user accessibility.