Cirql Protocol

Cirql Protocol Overview:

Project Objective: Cirql Protocol aims to revolutionize decentralized finance (DeFi) through the implementation of ERC-4626 vaults, empowering users to participate in yield-bearing strategies, credit delegation, and seamless integration with the GHO stablecoin.

1. Vault Participation: Alice funds an ERC-4626 vault, acquiring shares in a selected yield-bearing strategy.
2. Credit Delegation: Seeking additional yield, Alice delegates borrowing power securely to Bob through on-chain smart contracts.
3. GHO Stablecoin Strategies: Alice optimizes lending activities by leveraging the ERC-4626 wrapper for GHO stablecoin borrowing.
4. Monitoring and Adjustments: She regularly adjusts her portfolio based on market conditions or personal preferences.

Usecases: ERC-4626 Vaults: Users can fund ERC-4626 vaults, acquiring shares representing a single underlying ERC-20 token, optimizing and unifying technical parameters for yield-bearing strategies.

Credit Delegation: Cirql facilitates credit delegation, allowing depositors to earn interest while delegating borrowing power to other users. This innovative feature supports uncollateralized loans through on-chain smart contracts or off-chain legal agreements.

GHO Stablecoin Integration: Cirql serves as an ERC-4626 wrapper for GHO stablecoin borrowing, providing users with efficient access to decentralized, overcollateralized, and configurable stable assets.

Key Features: Vault Contract: A robust vault contract facilitates ERC-4626-based strategies, streamlining the process for users to deposit, withdraw, and monitor balances of tokenized yield-bearing vaults.

Credit Delegation Agreements: Cirql enables users to delegate borrowing power securely, with terms agreed upon either off-chain through legal agreements or on-chain via smart contracts.

GHO Borrowing Strategies: Integration with GHO stablecoin allows users to utilize the ERC-4626 wrapper for optimized borrowing and lending strategies, contributing to a more stable and reliable DeFi ecosystem.

Future Scopes: Extended Yield Strategies: Continuous development to enhance yield-bearing vault strategies, providing users with diversified and efficient options for optimizing their crypto holdings.

Expanded Credit Delegation: Cirql aims to broaden the scope of credit delegation, exploring partnerships and collaborations to offer a wider range of borrowing opportunities for the community.

Community Governance: Implementing community-driven governance to involve stakeholders in decision-making processes, ensuring the protocol evolves in line with the users' needs and preferences.

Cirql Protocol envisions a decentralized financial landscape where users can seamlessly engage in yield-bearing activities, delegate credit, and harness the potential of stablecoin strategies for sustained growth and innovation within the DeFi space.

The project uses the following technologies.

1. ConnectKit by Family for wallet connections.
2. ERC-4626 Standard: Usage: Cirql Protocol integrates ERC-4626 for optimizing and unifying the technical parameters of yield-bearing vaults. Properties: ERC-4626 outlines a standard API for tokenized yield-bearing vaults representing shares of an underlying ERC-20 token.
3. GHO token + GHODebt token to track borrows and repayment.
4. AaveV3 Pool - To mint GHO(stablecoin) for borrowers.
5. ERC20: actions on vault shares and underlying asset controls.

Something hacky to notice: The project started as a farcaster bot service to enable p2p lending and borrowing powered by the bot's managed vault. Due to the scope of the hackathon and timeline I had to pivot to becoming the protocol we are right now xD