@alpaca-finance/alpaca-money-market
v0.0.3
Published
Alpaca Finance 2.0 consists of layers of protocol build on top of the fundamental base layer call Money Market. Money Market is the set of contracts that allow lenders to deposit the tokens into the platform in exchange for interest. This enables borrower
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Alpaca Finance 2.0
Alpaca Finance 2.0 consists of layers of protocol build on top of the fundamental base layer call Money Market. Money Market is the set of contracts that allow lenders to deposit the tokens into the platform in exchange for interest. This enables borrowers to utilize this for various financial strategies e.g. hedging, carry trading, etc. Other Alpaca Finance's protocol that need accesses to capital such as Leverage Yield Farming will also be able to tap into the same pool of capital. This increases the utilization of lending assets such that the lenders benefit from providing different uses of loan.
Contract Architecture
Money Market
The core contracts are implemented using Diamond Pattern EIP-2535. The protocol facets consist of
- AdminFacet - Configure the protocol
- LendFacet - Start/Stop Lending
- CollateralFacet - Collateral used for over collateralized borrowing
- BorrowFacet - Over collateralized borrowing
- NonCollatFacet - Protocol to Protocol borrowing
- LiquidationFacet - Risk control once the over collateralized borrowing positions became underwater
- ViewFacet - All the view functions
Glossaries
Subaccounts
Each address will have a maximum number of subaccounts. This subaccount will be used for overcollateralized borrowing. Each subaccount will be a cross-margin portfilio that enable flexibility to users creating complex strategies
Collaterals
Collaterals are token that eligible to allow users to borrow other tokens given that the value of collaterals is greater than the value of token borrowed
Borrowing Power
Under a subaccount, each collateral will have a collateral factor. For example, depositing 1 BTC@$60,000 with a collateral factor of 0.9 will yield 0.9 * 60,000 = 54,000 Borrowing Power. This is used to calculate how much user can borrow against this collateral
Each borrowing token will also have a borrowing factor. For example, borrowing 1000 USDC@$1 with a borrowing factor of 0.8 will use 1000 / 0.8 = 1,250 Borrowing Power.
Follow the above example, this subaccount will have a remaining borrowing power of 54,000 - 1,250 = 52,750
Repurchasing
Once the remaining borrowing power reach 0, the subaccount is available for repurchasing. Repurchase happened when a repurchaser repay the debt for the subaccount in exchange for collateral under that subaccount at discount price
Liquidation
If the used borrowing power / total borrowing power is greater than x%, the subaccount is available for liquidation. Liquidation process is done through market selling an collateral at a pre-configured DEX to repay the outstanding debt
Contracts Call
Opening the market
- To create a market for lending and borrowing
AdminFacet.openMarket()
This will deploy an interest bearing token, in short ibToken, that represent the share in the lending pool and debtToken that represent the share in over collateralized lending pool
Lending
- To start lending
LendFacet.deposit()
Supply the token to mint the ibToken - To withdraw
LendFacet.withdraw()
Burn the ibToken to get the deposited token back with interest
Overcollateralized Borrowing
- To add collateral to the subaccount
CollateralFacet.addCollateral()
- Add a token as a collateral - To borrow a token
BorrowFacet.borrow()
- Borrowing a token
Liquidation
- To repurchase
LiquidationFacet.repurchase()
- Repurchase an underwater subaccount - To liquidate
LiquidationFacet.liquidationCall()
- Liquidate an underwater subaccount
Setting up the project
- Install dependencies
yarn
- to install forge, cast and anvil
curl -L https://foundry.paradigm.xyz | bash
- To compile contracts
forge build
Testing
forge test
Deployment
To impersonate as deployer
- set IMPERSONATE_AS in
.env
- yarn exec:bsc_mainnet:proxy-admin:deploy --unlocked --sender 0xC44f82b07Ab3E691F826951a6E335E1bC1bB0B51
Prerequisite
- Foundry installed
- Setup deployment config file in
./configs/[filename].json
- Setup
.env
withDEPLOYER_PRIVATE_KEY
,RPC_URL
- Load
.env
with commandsource .env
Money market
To simulate the deployment script
forge script solidity/scripts/deployments/01_DeployMoneyMarket.s.sol
To simulate with the real network
`forge script solidity/scripts/deployments/01_DeployMoneyMarket.s.sol --rpc-url $RPC_URL`
To execute the real transactions
`forge script solidity/scripts/deployments/01_DeployMoneyMarket.s.sol --rpc-url $RPC_URL --broadcast`
To make it work on Tenderly, add flag --slow
for it wait for tx to be confirmed before submit next tx
Utility scripts
Prerequisite
- Foundry installed
- Setup deployment config file in
./configs/[filename].json
- Setup
.env
withDEPLOYER_PRIVATE_KEY
,RPC_URL
, andDEPLOYMENT_CONFIG_FILENAME
- Load
.env
with commandsource .env
- have deployed contract addresses set in config file
- for each script, you can set config values in script file in the inputs section
Dry run locally
forge script solidity/scripts/utilities/ScriptName.s.sol --sig "runLocal()"
To simulate with the real network
forge script solidity/scripts/utilities/ScriptName.s.sol --rpc-url $RPC_URL
To execute the real transactions
forge script solidity/scripts/utilities/ScriptName.s.sol --broadcast --rpc-url $RPC_URL
Licensing
The primary license for Alpaca Protocol 2.0 is the BUSL LICENSE, see BUSL LICENSE.