Opulent

Opulent is a DeFi protocol on Arbitrum that tokenizes silver. It creates an ERC20 token (opXAG) representing silver, backed by ETH collateral. Key features:

Arbitrum-based: Leverages Arbitrum's layer 2 scaling for faster, cheaper transactions. Chainlink Price Feeds: Uses Arbitrum-specific Chainlink oracles for accurate ETH/USD and XAG/USD prices. Overcollateralization: 150% collateralization ratio for stability. Minting and Burning: Users mint opXAG with ETH collateral and burn opXAG to reclaim ETH. Built-in Liquidity Pool: Enables direct opXAG/ETH swaps. Fee Structure: 10% fee on liquidity pool transactions. Collateralization Monitoring: Users can check collateral balance and ratio. Security: Implements ReentrancyGuard against reentrancy attacks. Transparent Calculations: Helper functions for expected minting, burning, and swapping amounts.

The protocol's liquidity pool offers a stability mechanism through arbitrage opportunities. Users can potentially profit from price discrepancies between the pool and external markets, helping align the token price with actual silver prices. Opulent allows users to gain silver price exposure without physical storage, use silver-backed tokens in DeFi, and easily trade between silver exposure and ETH on Arbitrum. It demonstrates blockchain's ability to tokenize real-world assets on a scalable layer 2 solution.

Opulent was built using the following technologies and approaches:

Smart Contract Development:

Solidity 0.8.0+ for writing the core contract OpenZeppelin libraries for standard ERC20 functionality and security features (ReentrancyGuard) Hardhat as the development environment for compiling, testing, and deploying Used a custom template repository for kick-starting smart contract development: https://github.com/Hephyrius/Truffle-Hardhat-Template

Arbitrum Integration:

Deployed on Arbitrum One mainnet for layer 2 scaling benefits Utilized Arbitrum-specific Chainlink price feed addresses for ETH/USD and XAG/USD

Oracle Implementation:

Integrated Chainlink price feeds for real-time ETH and silver prices Used the IChainlinkAggregator interface to interact with Chainlink's price oracles

Frontend Development:

React.js for building the user interface wagmi hooks for seamless React integration with Ethereum RainbowKit for easy wallet connection and management ethers.js for interacting with the smart contract Used a custom template repository for kick-starting UI development: https://github.com/Hephyrius/Basic_Crypto_UI

Block Explorer:

Utilized Blockscout as the default block explorer for transaction and contract verification

Testing and Deployment:

Wrote comprehensive unit tests using Hardhat's testing framework Tested locally on a Hardhat fork of Arbitrum One mainnet Final deployment directly to Arbitrum One mainnet using Hardhat scripts

This project demonstrates the integration of traditional asset tokenization with layer 2 scaling solutions, showcasing the potential for efficient, low-cost DeFi applications on Arbitrum. The use of custom template repositories for both smart contract and UI development significantly accelerated the development process, allowing for rapid prototyping and implementation of the Opulent protocol.