SP95 Protocol

SP95 is a DeFi protocol designed to provide users with a unique financial exposure to the trend of Ethereum gas fees. This protocol enables users to participate by depositing their ETH as collateral, allowing them to mint a specialized ERC20 token called gasETH. It is pegged to the value of the 7-day Ethereum base fee moving average.

To ensure the safety and stability of the protocol, SP95 maintains an overcollateralization policy and implements strict market risk parameters. This approach allows users the flexibility to redeem their gasETH for ETH at any time, ensuring liquidity and confidence in the system.

The possibilities with gasETH are vast. Users can leverage this token to engage with various other DeFi protocols, including decentralized exchanges and lending markets, broadening their participation in the DeFi ecosystem.

GasETH can be seamlessly used to cover Ethereum gas fees through a specialized paymaster system. This unique paymaster is directly connected to the trampoline smart contract wallet, streamlining the process and making gas fee payments a breeze.

Our protocol is built upon a fork and adaptation of certain modules from Liquity, a decentralized stablecoin protocol. We replaced the oracle with our own solution, utilizing the new Chainlink automation functions. To accommodate Liquity's risk parameters, we created a protocol simulator using Python, which models the behavior of a diverse range of users.

Our frontend, developed with react.js, enables users to interact with the protocol on the Sepolia testnet. Additionally, it features a demo showcasing a practical use-case involving a Paymaster. In this demonstration, a user mints an NFT and covers transaction fees using gasETH instead of ETH. To facilitate this process, we designed a smart contract wallet using the trampoline boilerplate.