Cosmic Chicken

We want to leverage FVM to establish a undercollateralized lending protocol using the novel bonding mechanism introduced by Liquity team. The main purpose of this project is to diminish the capital cost of collateral for Storage Providers while providing an attractive yield opportunity for FIL token holders. Chicken Bonds as created as a way to allow protocols to bootstrap liquidity at minimal cost. It opens up new earning and trading strategies for the expected future yield of Storage Providers. In Liquity's implementation of LUSD bond, yield is generated by depositing the LUSD to the Stability Pool, which acts as the source of liquidity to repay debt from liquidated Troves (loan in the Liquity ecosystem). In our proof-of-concept implementation, yield is generated by a Staking Pool, where Storage Providers can deposit 50% of the required collateral they need and borrow the remaining 50% from lenders which provide the FIL tokens by minting a Chicken Bond. This way, we are creating an tradeable abstraction over the locked collateral, providing liquidity for bond holders and generating protocol owned funds that will further enhance the protocol stability.

The Cosmic Chicken Bond is a ERC-721 token, that represents a loan by the lender. All funds deposited by lenders are stored in the Pending Bucket. The Permanent Bucket stores the funds acquired by the protocol from users that have Chicken In or Chicken Out. Reserve Bucket keeps the yield generated from Pending and Permanent buckets. $vbFIL is the virtual balance representing a claim of the Reserve Bucket. $bFIL is the token minted that can claim ETH from the Reserve Bucket at a redemption price defined by the market and backed by the Reserve Bucket.

We used a Foundry project in order to develop the smart contracts needed for this project. You can check the deployed contracts in Hyperspace here:

Bond: 0xdB1819F57d9023a948da930C10dea248CdBfdad8

Pool: 0x7c75BCC74204696f513A3412a4A039f6D319b6C6

bFIL: 0x7cb38f2139Eb8830DEb7aB9650Cf655CE48d8D2F

ChickenBondManager: 0x60361121F74cE943D5cAFe0FBb98315A2eb2095b

For the frontend, we created a Next.js app. We used ethers.js and wagmi for the smart contract and wallet interactions needed. It is deployed using Netfliy and you can check it at: https://cosmic-chicken.finiam.com For the visual representation for the NFTs for the Chicken Bonds, we used NFT.Storage in order to host the assets.