Leverage ReFi

Leverage ReFi

A New Era for ReFi and Stablecoins: GHO, the First Stable Coin to be powered by ecological real world assets

The problem Leverage ReFi solves

Climate change, humanity's direst crisis, demands immediate action. Many seek investments that yield profits while preserving our planet. Our solution allows you to invest in ecological assets without sacrificing liquidity. Benefit from long-term value growth, leverage and the chance to invest further, fostering a sustainable future while profiting financially. Our objective is to ensure a livable and sustainable world for future generations!
Video (better): https://drive.google.com/file/d/1piQ4Xf4p2Imu5MliyfRRHoyW1sNePTCE/

On top of that we see big financial turbulance e.g. a de-dollarization, the decline of the United States dollar as the world’s dominant reserved currency, is underway, and it’s gaining momentum. What we need is a new stablecoin that is backed by real world assets. Our strategy is to back GHO, the new stablecoin from Aave, with ecological assets like carbon tokens. In this way we are not only get independent from an central party like the Federal Reserve controlling the amount and value, but we generate a demand for crypto assets that are backed by ecological real world assets.

We have built a facilitator for the Aave GHO ecosystem to tackle both challenges:

  1. Approval by Aave Governance
  • it determines and assigns a Facilitator a specific Bucket capacity to bootstrap GHO liquidity and the GHO market
  1. Facilitator
  • it can trustlessly generate and burn GHO tokens
  • each Facilitator is assigned a Bucket with a specified Capacity
  1. Using Carbon tokens as collateral for GHO
  • collateral (ecological assets) can be provided cross chain via Cosmos to mint GHO
  • the user is able to levergae his ecological asset as collateral and he can lend his assets (collateral) to other via Aave to earn an interest.

Cross chain functionality:

  • we use cosmos to enable the use of the ecological assets cross chain

User experience:

  • user can leverage his investment via GHO, so he has an additional incentive for hodling (locking) ecological assets

Challenges we ran into

  • Reworking a lending protocol from collateral & supply (where one borrows someone elses supply) oriented towards collateral & synthetic was non trivial. We had to significantly update the model (including the incentive mechanism).
  • Liquidation requires in the current implementation requires coordination: tokens have to be repaied on one chain, but liquidator reward recorded on another. Also, traditionally we need to calculate exact amount of purchased collateral in a chain where the collateral position is held.
  • We started a communication with Axelar, but given the weekend, we were not able to complete it -- that required additional actions from the Axelar team. So, instead, we comply with the specified interface, but the transaction is fully managed by a validator of the AppChain.
  • UI: not enough UI Devs
  • UI: bOS.gg doesn't really work --> we had to fork neare social gateway
  • UI: integrating wallet widget didn't work with the near social design, so we had to spent time on hacking the design.
  • understanding the Aave GHO core contracts and what constitutes the facilitator, so that we could spec and write our own facilitator for the hackathon
  • Deploying to Mantle, foundry script was not able to broadcast the transactions, giving a 'nonce too low error' (reached out to Mantle team about this). Workaround was to forge create & send the transactions manually.
  • Verifying contract on scroll, forge-verify and Blockscout web UI was not able to. Reached out to Scroll team about it & let them know as a note for our submission.
  • First we had to fork BOS page to integrate keplr as there was no support for cosmos wallet

Main thing was to understand how the current code is working and tie keplr wallet with eth and near wallets

Discussion