Spectre Protocol

❌ Problem:

There are $37 billion in NFT assets, four times AAVE's market cap. Despite being digital assets on the blockchain, an appropriate and efficient way to use them as collateral for financing hasn't been found yet.
There are various P2P or P2Pool solutions that use the floor price or AI to calculate the value of the NFT, which results in an inefficient way of collateralizing.
Not finding a solution and utilizing them as collateral represents a missed opportunity for AAVE, and allowing GHO to absorb this liquidity without modifying its infrastructure could significantly increase its market capitalization.

✅ Solution:

In the Spectre Protocol, we have devised a solution for NFT users to access GHO liquidity. Regular AAVE users interested in NFTs can provide liquidity on behalf of an NFT holder in need of a loan, across multiple chains using Chainlink's CCIP. This not only earns them the APY from providing liquidity in AAVE but also a reward granted by the NFT owner. Due to the nature of AAVE, collateralizing someone else's NFT and delegating the debt is challenging, as they share a Health Factor. But what if the Health Factor were linked solely to the NFT? That's what we have achieved.

🥳 NFT owners will be able to:

1️⃣ Register a loan request to secure financing in GHO, using the NFT as collateral.
2️⃣ Define loan conditions, including rewards in GHO, the token to be used as collateral in AAVE, the amount requested, and the loan duration.
3️⃣ Someone will accept the specified conditions, delegating the borrowing power of the requested amount.
4️⃣ Borrow and repay GHO as many times as desired within the loan deadline, solely responsible for the Health Factor of their NFT.
5️⃣ Close the loan anytime before the established deadline, only if the GHO debt is paid, reclaiming their NFTs.
6️⃣ If the agreed-upon deadline passes without debt repayment, the supplier can obtain their NFT and the reward.

👨‍🎤 Liquidity providers will be able to:

1️⃣ Find desired or attractive-return NFTs.
2️⃣ Provide liquidity in AAVE on behalf of the owner of the NFT requesting the loan from various networks using Chainlink's CCIP protocol. 3️⃣ Earn the APY for supplying liquidity in AAVE, along with its security.
4️⃣ Receive an additional reward in GHO.
5️⃣ If the NFT owner fails to repay the loan on time or is liquidated by AAVE mechanisms, they will receive a discounted NFT and the initial GHO reward.
6️⃣ If the NFT owner successfully completes the loan, they will receive the AAVE supply with interest and the initial GHO reward.

There are three parts to our project:

Subgraph:
We have created a custom subgraph with TheGraph that indexes all events emitted by the contracts and generates the necessary data relationships. This way, we store the history of loans being created and provide it to the interface for easier consumption.

Interface:
We have developed a custom interface from scratch that facilitates interaction with the entire protocol. We have also used the Family provider for interaction between wallets and the interface. We have built it with Next.js, Tailwind, Alchemy SDK, wagmi, and it is hosted on Vercel.

Contracts:
We have developed a series of smart contracts with Foundry that allow users to:

Deploy a contract where the NFT will be locked; it will be responsible for checking its debt and interacting with the AAVE protocol. This contract will own the Health Factor of the loan. Another contract that will interact with the Chainlink CCIP protocol and redirect the supply to the corresponding loan from other chains.