PoC of Ray CDS Insurance on Symbiiotic

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Note: This is a Proof of Concept (PoC) implementation. The system is not yet production-ready and should be used for testing and development purposes only.

This project implements a Credit Default Swap (CDS) like insurance system on Symbiotic that provides coverage against depegging events for ETH-pegged assets. The system acts as a Symbiotic Delegation Contract (SDC) with slashing mechanisms triggered when an ETH-pegged asset depegs from its target value.

Overview

The system allows users to:

• Buy coverage for supported ETH-pegged assets
• Claim coverage when depegging events occur
• Stake as operators to provide insurance capacity
• Earn rewards for providing insurance coverage

Key Components

Controller

The main orchestrator contract that:

• Manages cover token creation and issuance
• Handles coverage buying and claiming
• Integrates with Symbiotic's vault system
• Manages operator staking and slashing

Cover Tokens

• Each supported asset has its own cover token
• Cover tokens are ERC20 tokens representing insurance coverage
• Created using a minimal proxy pattern for gas efficiency
• Managed by the Controller contract

Network Middleware

• Manages network operations and vault interactions
• Handles staking, slashing, and rewards distribution
• Provides interface to Symbiotic's core functionality

Main Features

1. Coverage Management

   • Buy coverage for supported ETH-pegged assets
   • Claim coverage when depegging events occur
   • Automatic capacity calculation based on staked amounts

2. Staking and Slashing

   • Operators can stake to provide insurance capacity
   • Slashing mechanism triggered on depegging events
   • Rewards distribution for stakers and operators

3. Asset Support

   • Dynamic addition of supported assets
   • Each asset has its own cover token
   • Capacity management per asset

4. Security Features

   • Role-based access control
   • Slashing protection
   • Capacity limits based on staked amounts

Development

This project is built using Foundry, a blazing fast, portable and modular toolkit for Ethereum application development written in Rust.

Build

$ forge build

Test

$ forge test

Format

$ forge fmt

Gas Snapshots

$ forge snapshot

Anvil

$ anvil

Deploy

$ forge script script/Counter.s.sol:CounterScript --rpc-url <your_rpc_url> --private-key <your_private_key>

Cast

$ cast <subcommand>

Help

$ forge --help
$ anvil --help
$ cast --help

Documentation

For more information about Foundry, visit: https://book.getfoundry.sh/