HedgeInsurX is a Platform where you can generate safe yield on your Liquidity by Investing in our highly Optimized-Strategies. These strategies analyzes the Lending and Borrowing Rates of protocols like AAVE, Compound etc and Fees offered by Liquidity Pools in Uniswap and then deposits your liquidity accordingly such that the invested amount always earns a high yield. I have also implemented the functionality of OnChain Protection for users funds in the form of Insurance. Users can select from a variety of schemes based on their choice and get themselves Insured from any kind of Onchain-Risks. We have utilized Polygon ID's for issuing and verifiying the complete Insurance Claim process through our "InsuranceClaims Credentials". We will issue a polygon id credential to the user after complete analysis that contains a field denoting if the claim request is valid or not. Users will have to submit a ZK-Proof of their Issued Credentials through Polygon ID App in order to get verified and receive Cover Amount. Also users can transfer their funds across multiple networks through our Cross-Chain Bridge implemented using ChainLink's CCIP.
- Solidity for writing Smart Contracts
- Remix and HardHat for Smart Contract development and deployment.
- JavaScript for writing deploy scripts and test cases.
- Chai library for testing smart contracts.
- Alchemy for providing RPC node urls to interact and fetch data from blockchain.
- MetaMask a simple browser extension wallet to store your funds and interact with the dApp to perform operations.
- ThirdWeb library for easy wallet integration and supporting mulitple networks.
- ERC-20 standard for evm compatible tokens used in the dApp and ERC-4626 contract for our Tokenized Vault used to provide claims amount to users.
- SDK's and Smart Contracts of AAVE-V3 (@aave/protocol-js), Compound-V3 or Comet (Compound.js) and UniSwap (@uniswap/v3-sdk & sdk-core ) for implementing these protocols in our Strategies.
- Zero-Knowledge Proofs (ZKP) - Polygon ID (iden3 circuits, custom schema generation)
- Zk-Proof verifier contract used to verify the credentials submitted by users for the claim request verification process.
- CCIP contract that is used to implement cross-chain bridge for transferring assets across multiple networks.
- JavaScript & React.js for building interactive dynamic UI interface.
- Ethers.js for integrating the Smart Contracts with UI application.
- Chakra-UI Library for designing and styling UI.
- node
>Node v16.5.0 - npm
npm install npm@latest -g
- Clone the repository
git clone https://github.com/varunsh20/HedgeInsurX.git - Install the dependencies
npm install
- Add the values of the following varibles in your .env file
VITE_RPC_URL VITE_PRIVATE_KEY
- Go to frontend folder
cd frontend - Run command
npm run dev
This project main focusses on Three main Domains. Their usage and working in the project are desrcibed as below:-
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We allow users to invest their liquidity in our strategies to generate safe and stable returns.
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Currently there are two different types of strategies that differs in the way they handle the liquidity to generate returns.
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First One is a Low-Risk & Stable Returns type Strategy and is more suitable for those who wants to invest for a Long-Term. This strategy compares the Lending Rates of assets (Currently USDC) on platforms like AAVE, Compound etc and invests in the protocol that offers better rates. Users are free to withdraw thier funds and close the position any time they want.
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Second Strategy is of medium risk category and generates slightly better yield than first one. This strategy works by investing half amount of user's funds as
collateral in AAVE where it earns interest, it then borrows another asset (USDT currently) against the supplied collateral and supply the remaining amount of asset and the borrowed token (USDC+UDST) in a pair to USDC-USDT Liquidity Pool in Uniswap-V3 where the liquidity earns the Trading fees. Here users will have to close the complete
position and withdraw their funds plus the fees rewards earned all at once.
- We have integrated the capability of providing OnChain Insurance to protect User's funds against any kind of Onchain Risk including a bug in the code, Rug Pull, etc.
- We have three different categories of Insurance Schemes based on Low, Medium and High Risk level that are further divided on the basis of Cover Amount and Duration like 1 , 3 and 6 months. So that makes a total of 9 Insurance Schemes.
- Users can select from any of these schemes according to their choice and pay premium amount all at once.
We have used Polygon ID's for issuing credentials and for our claim verification process. The complete process from request to receiving funds is explained below.
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First users will have to submit a Claim Request form under their purchased policies, that asks for some basic user details like their Polygon DID's (to issue credentials to them directly), approx loss amount, event date etc.
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After detailed verification from our side, they will be issued a credential namely InsuranceClaimsCredential that contains an attribute called validClaimRequest. It's value determines whether the claim request made by user is authentic and valid.
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In order to complete the verification process, users will have to scan and submit the ZK-Proof of their issued credential that will transfer the funds after successful verification.
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Below is a demo implementation of how they credentials are issued and stored in App. For sample we have generated the credentials directly from the issuer's QR code.
issued.mp4
- These credentials are verified OnChain using @iden3's ZKPVerifier && Polygon ID validator smart contracts. This happens when user scans the QR code that contains the ZKP Query Request in which we set the value of validClaimRequest as 1 so that it is passed only for those credentials that have its value as true.
- After the credential value matches with the query, users are prompted to select their wallet where the function submitZKPResponse() is called.
- Here is a demo showing how claim requests are validated from the UI's QR and how ZK-Proofs are submitted. https://drive.google.com/file/d/1ar3GMlZwG-X5V1XOFXpaOY5_u0_QllDz/view?usp=sharing
- Users can transfer their assets cross-chain using our Bridge.
- This Bridge is implemented using ChainLink's CCIP. Currently we support cross-chain transfers across 4 networks i.e. Mumbai, Sepolia, BSC Testnet, Arbitrum Sepolia.
- On testnet chainlink supports only its native BnM and LnM tokens, so we have used BnM tokens as the main asset. And fees is paid using Link's token.
- Users first transfer their assets to our smart contract which then calls the CCIP's smart contract for asset transfers. Our contract is already funded with Link tokens on all the networks for paying the gas fees for cross-chain transfers.
Following References were used for implementing different functionalities in the project:-
- https://devs.polygonid.com/docs/verifier/on-chain-verification/overview/
- https://github.com/aave/aave-utilities
- https://docs.compound.finance/collateral-and-borrowing/
- https://docs.chain.link/ccip/tutorials/cross-chain-tokens
Please drop a 🌟 on the repo if you like it.