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A Backend infrastructure for Programmable Rebalancing for Vaults using Account Abstraction


Created At


Project Description

In today's dynamic and volatile market, ensuring stability within DAOs becomes paramount for sustainable growth. Our project introduces a robust backend infrastructure designed for Programmable Rebalancing of Vaults utilising Account Abstraction, offering a cutting-edge solution to maintain stability and security.

Key Features:

  1. Stability with Stable Coins (GHO): In the face of market uncertainty, stable coins provide a reliable anchor for DAOs seeking to minimise risk. Our protocol enables DAOs to safeguard their financial positions by maintaining a specified amount of stable coins (GHO) within their vaults. This is achieved by leveraging the borrowing capabilities of the AAVE Protocol, where volatile assets are used as collateral.
  2. EIP-4337 Integration: The project harnesses the power of EIP 4337 to enhance the efficiency and functionality of the smart contracts involved. By using the standard, our protocol facilitates seamless interactions with external systems, promoting interoperability and ease of integration.
  3. Session Keys for Customisable Parameters: To offer maximum flexibility to users, our system incorporates Session Keys, enabling smart contracts to dynamically borrow and repay GHO tokens based on parameters set by the user. This customization feature empowers DAOs to adapt their strategies according to market conditions and internal requirements.


  • Risk Mitigation: By maintaining stable coins within vaults, DAOs can effectively hedge against market volatility, ensuring a more secure financial position.
  • Customisable Strategies: The use of Session Keys empowers users to tailor borrowing and repayment parameters, allowing for dynamic adaptation to changing market conditions.
  • Interoperability: Integration with the AAVE Protocol and adherence to EIP-4337 standards ensure seamless compatibility with external systems, promoting widespread adoption.

In conclusion, our project introduces a comprehensive solution for DAOs seeking stability in a volatile market. By combining Account Abstraction, stable coins, EIP-4337, and Session Keys, we provide a powerful backend infrastructure that enhances security, flexibility, and overall efficiency in managing vaults within decentralised ecosystems.

How it's Made

  1. Frontend Integration:
    • The system takes input from the frontend, specifically the Vault address. This integration ensures that the protocol is responsive to the commands and preferences set by the user or DAO managing the vault.
  2. Backend Event Listening:
    • The backend actively listens to events associated with the selected volatile currency deposited into the vault. This involves monitoring the blockchain for relevant transactions and changes in the vault's asset composition.
  3. Session Key Utilization:
    • The utilization of Session Keys plays a crucial role in the project's functionality. When the GHO token, representing stable coins, falls below the desired threshold as specified by the user through Session Keys, the system triggers an action to borrow GHO tokens. This dynamic borrowing mechanism is a key feature that enables the protocol to respond intelligently to market conditions.
  4. Borrowing and Repayment Logic:
    • Upon detection of a GHO token deficiency or excess based on the Session Key parameters, the smart contract executes the borrowing or repayment logic. If the GHO token is below the desired mark, the smart contract initiates the borrowing process from the AAVE Protocol, using the selected volatile currency as collateral. Conversely, if there is an excess of GHO tokens, the system triggers a repayment action.
  5. AAVE Protocol Integration:
    • The project integrates with the AAVE Protocol to facilitate the borrowing and lending of assets. This involves interacting with the AAVE smart contracts, adhering to the protocol's specifications for secure and decentralized borrowing.
  6. Continuous Monitoring and Adjustment:
    • The system operates continuously, monitoring events and changes in the vault's asset composition. This ongoing monitoring allows the protocol to make timely adjustments, ensuring that the vault maintains the desired amount of stable coins in response to market dynamics.
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