Guardian Vault

The Core Problem It Solves The project's entire premise is built on solving a fundamental problem: fear. For the average person, managing their own crypto (a practice called "self-custody") is extremely high-stakes.

If you lose your password (your "seed phrase"), your money is gone forever, with no bank to call.

If you accidentally interact with a malicious website or sign a bad transaction, your wallet can be drained instantly.

If you lose your device in an emergency, you are completely locked out of your funds when you might need them most.

The project identifies this paralyzing fear as the single biggest reason more people don't adopt and manage their own digital assets.

The Solution: A Three-Pillar Approach (The MVP) Guardian Vault aims to be the solution by building a self-custody wallet that provides a "safety net," transforming this anxiety into peace of mind. The initial product (MVP) is built on three pillars:

1. Pillar 1: Security (via Social Recovery)

What it is: Instead of relying only on a single seed phrase that you can lose, Guardian Vault allows you to designate a small group of trusted people or devices as your "guardians." This could be family members, close friends, or even your other secure devices (like a hardware wallet).

How it works: If you lose access to your primary wallet (e.g., you lose your phone), you can initiate a recovery process. This process would require a majority of your guardians (e.g., 2 out of 3) to approve the action. Once they approve, you can regain control of your account. This eliminates the "single point of failure," as losing your phone doesn't mean you've lost everything.

1. Pillar 2: Liquidity (via Emergency PYUSD Loan)

What it is: This is a key innovation. The project recognizes that even with social recovery, there is often a security delay (a "time-lock") of 24-48 hours before you regain access. Emergencies can't wait that long.

How it works: During this recovery time-lock, Guardian Vault provides an instant emergency loan using PYUSD (PayPal's stablecoin). So, if you're stranded in another city after losing your phone, you can start the recovery, get guardian approval, and immediately access a small amount of cash (e.g., $200 in PYUSD) to pay for a hotel or transportation. It turns a potential disaster into a "manageable inconvenience."

1. Pillar 3: Compliance (via Simplified Tax Reporting)

What it is: Crypto taxes are notoriously complex. This feature aims to simplify them dramatically.

How it works: The wallet will not only track its own transactions but also allow you to connect your other wallets (like MetaMask) in a read-only mode. It then consolidates all this activity—trades, staking, DeFi interactions—into a single, clear, and simple tax report that you can generate with one click.

The Future Vision (The Roadmap) The text explains that the MVP is just the beginning. The long-term goal is to evolve from a "safety net" into an "intelligent co-pilot" for your finances using more advanced features:

AI-Powered Security Assistant: This tool would proactively protect you. Before you sign any complex DeFi transaction, the AI would run a simulation and tell you in plain English what you're really agreeing to (e.g., "WARNING: You are giving this website permission to spend ALL of your PYUSD"). This is designed to prevent common scams.

AI-Powered Tax Optimization: This goes beyond just reporting taxes. The AI would analyze your transaction history and provide actionable advice. The example given is "tax-loss harvesting," where it might suggest, "Consider selling this asset at a loss to offset that capital gain you made, which could lower your overall tax bill."

Expanded Liquidity (Social Credit Line): This is the evolution of the emergency loan. It would allow you to leverage the trust of your guardian network to access larger, non-emergency loans. You could, for example, request a loan to buy a computer, and your guardians could co-sign or approve it, letting you borrow without having to sell your assets.

Premium Plan (The Business Model): These advanced AI and DeFi-powered features would be bundled into a paid "premium subscription plan," creating the business model for the project.

Guardian Vault: Technical Deep Dive

1. The Central Tech Stack: A Three-Layer Architecture

The project is designed as a three-part modular system to maximize security and functionality:

Frontend (Angular): This is the application the user sees. It's an Angular app that runs entirely on the client-side (in your browser).

Key Function: Security comes first. The user's private key (the "seed phrase") is generated and stored encrypted only on the user's device. The frontend is the actual wallet. It never sends the private key to any server. It is 100% self-custody.

How it connects: It talks directly to the blockchain (the smart contracts) to sign and send transactions.

Blockchain (Solidity): This is the immutable "layer of truth" that lives on the blockchain (e.g., Ethereum or an L2).

Key Function: It contains the central logic for security and liquidity in smart contracts. There are two main ones:

VaultContract.sol: Manages all the social recovery logic. It keeps the registry of who your guardians are and which address is the current owner.

LoanContract.sol: Manages the liquidity pool for the loans. This contract is the one that actually holds the funds (in PYUSD) and has the logic to release them instantly once the VaultContract confirms a recovery has been initiated.

Backend (Go): This is a non-custodial support server. It has no access to your keys or your funds.

Key Function: It acts as an "orchestrator" for tasks that are impractical to do on the frontend. There are two services:

indexer_service: Monitors the blockchain (using Etherscan/Covalent APIs) to track all transactions from connected wallets. It collects and organizes this data so the "Tax Report" feature (Pillar 3) is fast and doesn't require the user to wait.

defi_helper_service: This is the brain behind the future "AI Security Assistant."

1. How the Pieces Fit Together: The Emergency Loan Flow

This flow shows how the three layers interact:

The Crisis: You lose your phone.

Step 1 (Frontend): You open the Guardian Vault app (Angular) on your laptop. You click "Initiate Recovery." The app notifies your guardians to confirm.

Step 2 (Blockchain): Your guardians interact (via their frontends) with the VaultContract.sol to approve the recovery.

Step 3 (Blockchain): The VaultContract.sol registers the approvals and emits an event: "Recovery Approved! Initiating 48h time-lock." This same event unlocks your credit line in the LoanContract.sol.

Step 4 (Frontend + Blockchain): In your Angular app, you now see a button to "Use Emergency Loan." When you click it, the frontend signs a transaction to call the LoanContract.sol.

Step 5 (Blockchain + PYUSD): The LoanContract.sol verifies that your recovery is active and instantly transfers 200 PYUSD to your Vault address.

Result: You now have liquid funds (PYUSD) in your recovered wallet to pay for that hotel, all while the 48-hour time-lock for your main assets is still running.

1. Key Partner Technologies and Their Benefits

PYUSD (PayPal USD): This is the most crucial technology partner.

Benefit: The problem with an emergency loan is that it must be useful in the real world. Using a volatile asset like ETH would be useless if its price drops 20% before you can use it. PYUSD provides stability (1:1 with USD), speed, and trust, ensuring the $200 you borrow is exactly $200 when you receive and use it.

Etherscan / Covalent:

Benefit: They allow the Go backend to read blockchain history efficiently. Without them, the project would have to run a full archive node (extremely expensive and slow) just to power the tax feature.

Aave (Potential):

Benefit: The contracts are "composable." This means the LoanContract.sol doesn't need to have its own million-dollar pool. It could integrate with a massive lending protocol like Aave to get the liquidity from there, making the business model infinitely more scalable.

1. The Notable "Hack": Transaction Simulation

The smartest "hack" in the project (mentioned in the future vision and pitch.txt) is the defi_helper_service.

Here is how the AI Security Assistant works: when you want to execute a risky DeFi transaction, the Go backend intercepts it. Before you sign it with your real key, the backend "simulates" the transaction on a private copy of the blockchain. Then, it checks the result: "What happened? Did you lose all your funds? Did you give this website infinite permission?"

It then reports back to the Angular frontend in plain language: "DANGER! If you sign this, you will give this contract permission to spend all your PYUSD." This proactive simulation is a professional-grade security feature that prevents scams before they happen.