iUSD Protocol

A decentralized finance (DeFi) application built on the Internet Computer (ICP) blockchain that introduces a stablecoin called iUSD. The protocol allows users to lock collateral assets (ICP, ckBTC, and ckETH) and mint iUSD against them, similar to MakerDAO's DAI but leveraging ICP's unique capabilities.

Core Features

• Multi-collateral lending platform
• 75% loan-to-value (LTV) ratio
• Real-time price feeds using ICP's HTTPS outcalls
• Automated liquidation system
• Decentralized governance (planned)

Project Structure

iUSD/
├── src/
│   ├── lib.rs                 # Main canister entry point
│   ├── vault_system.rs        # Core vault management system
│   ├── iusd_token.rs         # iUSD token implementation (ICRC-2 compatible)
│   ├── price_feed.rs         # Price oracle system
│   ├── liquidation.rs        # Liquidation mechanism
│   └── bin/
│       └── liquidator_bot.rs # Off-chain liquidation bot
├── Cargo.toml                # Project dependencies
└── dfx.json                  # Internet Computer project config

Component Details

Vault System (vault_system.rs)

• Manages user vaults and collateral
• Handles minting and burning of iUSD
• Implements safety checks for collateral ratios
• TODO: Update CANISTER-ID-HERE placeholder with actual iUSD canister ID

iUSD Token (iusd_token.rs)

• ICRC-2 compatible token implementation
• Implements minting/burning mechanics
• Includes transfer functionality
• Maintains transaction history

Price Feed System (price_feed.rs)

• Fetches prices from multiple sources:
  • CoinGecko
  • Binance
  • Kraken
• Implements median price calculation
• Includes staleness checks
• Price deviation monitoring

Liquidation System (liquidation.rs)

• Monitors vault health
• Executes liquidations when collateral ratio drops
• Handles collateral auctions
• TODO: Update canister IDs for:
  • ICP Ledger
  • ckBTC
  • ckETH

Liquidator Bot (liquidator_bot.rs)

• Off-chain monitoring system
• Automated liquidation execution
• Profit calculation
• TODO: Implement setup_identity() function for key management

Setup Requirements

1. Internet Computer SDK (dfx)
2. Rust toolchain
3. Required canister IDs
4. Access to price feed APIs

Configuration

Required Environment Variables

PROTOCOL_CANISTER_ID="your-protocol-canister-id"
IUSD_CANISTER_ID="your-iusd-canister-id"

Collateral Settings

• ICP: 75% LTV ratio
• ckBTC: 75% LTV ratio
• ckETH: 75% LTV ratio

Remaining Tasks

1. Price Feed System

   • Implement emergency price feed fallbacks
   • Add more sophisticated price aggregation
   • Set up monitoring for API health

2. Liquidation System

   • Add monitoring and alerting
   • Implement parallel liquidation execution
   • Add configuration file system
   • Complete keeper incentive mechanism

3. Governance

   • Implement governance token
   • Create proposal system
   • Set up parameter adjustment mechanism

4. Security

   • Complete security audit
   • Implement emergency shutdown mechanism
   • Add rate limiting

5. Testing

   • Write comprehensive test suite
   • Set up integration tests
   • Perform load testing

Development Progress

• Basic vault system implementation
• iUSD token implementation
• Price feed system
• Liquidation mechanism
• Liquidator bot framework
• Governance system
• Emergency mechanisms
• Testing framework
• Production deployment

Security Considerations

• Price feed manipulation resistance
• Liquidation race conditions
• Flash loan attack prevention
• Oracle failure scenarios
• Collateral volatility management

Deployment Checklist

1. Deploy token canister
2. Deploy vault system
3. Configure price feeds
4. Set up liquidation system
5. Test liquidator bot
6. Configure governance parameters

Important Notes

• All monetary values use 8 decimal places
• Minimum collateral requirements vary by asset
• Liquidation bonus is configurable (default 10%)
• Price feeds require 2/3 sources to agree within 5%
• System uses weighted median for final prices

Contribution Guidelines

1. Fork the repository
2. Create feature branch
3. Submit pull request
4. Ensure tests pass
5. Update documentation

License

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Contact

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