Ghoul-Finance

Ghoul Finance is an innovative DeFi protocol that leverages the idle liquidity across blockchains to create a dynamic borrowing and lending ecosystem. At its core, Ghoul Finance introduces a unique concept where each Vault, representing a user's portfolio of collateral and debt, is an NFT. This NFT-based approach enables the seamless transfer of financial positions between users. The protocol primarily operates across two chains - Sepolia and Fuji, utilizing Chainlink's CCIP for secure cross-chain communication. Borrowers can access liquidity by minting GHO tokens on Fuji, backed by assets in the AAVE pool on Sepolia. Additionally, Ghoul Finance incorporates mechanisms for repayment and liquidation, ensuring a balanced and secure financial environment.

1. Vault Creation: Users create a new Vault on the Router (Sepolia), which then mints a corresponding Vault NFT.

2. Lending: Lenders transfer AAVE tokens (aTokens) to their Vault, establishing the collateral.

3. Borrowing:

   • The lender initiates a borrowing request for GHO tokens.
   • The Router performs internal checks before requesting the Facilitator (Fuji) to mint GHO tokens.
   • The Router uses Chainlink CCIP to communicate message of borrowing token across another chain.
   • The Facilitator mints GHO tokens directly to the lender on the destination chain.

4. Repayment:

   • The lender initiates repayment on the Facilitator.
   • The Facilitator burns the repaid GHO tokens and notifies the Router to mark the repayment.
   • The Facilitator uses Chainlink CCIP to communicate message of repaying token across another chain.

5. Liquidation (Not Implemented):

   • In cases of undercollateralization, a Liquidator can initiate the liquidation process.
   • The Router verifies eligibility for liquidation and requests the Facilitator to proceed.
   • The Facilitator accepts GHO token repayments and instructs the Router to liquidate the position.
   • The Router completes the liquidation process, affecting the corresponding NFT Vault by transferring the ownership of vault to the liquidator

So, the project uses Aave-V3, Gho, and Chainlink CCIP for the core protocol and also uses the Family SDK for frontend app.

Our frontend app is made with Scaffold-eth, it's a simple bare minimum app without any UI component.