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Fluxus

The project aims to maintain stablecoin price stability within a Uniswap V4 pool by using Chronicle oracles and dynamic fees.

Fluxus

Created At

ETHGlobal San Francisco

Winner of

Chronicle Protocol - Best DeFi Application Powered by Chronicle 2nd place

Uniswap Foundation - Hooks, Hooks, and Hooks 2nd place

Project Description

The aim of the our project is to create a flexible, dynamic fee system that maintains stablecoin price stability within a Uniswap V4 liquidity pool. By integrating external oracles, dynamic fees, and the ability to toggle price behavior, we seek to maintain the value of a stablecoin near its target, discouraging extreme price volatility through economic incentives (fees).

How it's Made

Smart Contract: The smart contract is built via Foundry. It integrates Uniswap V4 to customize swap behavior for stablecoin trades, allowing dynamic fee adjustments based on price deviations from a target. The contract manages stablecoin prices using oracles to track pool prices and applies dynamic buy/sell fees to stabilize the price. A flipping mechanism allows the contract to switch between two pricing models. Fees are capped at 50%, encouraging price stability. Core functions include retrieving stablecoin prices, calculating fees, and modifying Uniswap’s swap behavior. Additionally, a selfKiss method links oracles through the Chronicle ISelfKisser interface.

Frontend: This frontend is built with Next.js, React, and other web3 tools. It integrates authentication using Alchemy Account Kit with multiple login options, including email, passkey, social logins (Google, Facebook), and external wallets via WalletConnect. The project also utilizes Sepolia Testnet for blockchain interactions, configured with Alchemy's infrastructure for secure data transport. React Query is used for efficient data fetching, and Wagmi with Viem handles wallet connections and blockchain transactions. TailwindCSS is used for styling, and ESLint ensures code quality. This setup makes the app a responsive and secure platform for interacting with stablecoins and decentralized finance features.

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