undegen finance

Our project tackles the challenge that many users face in building and balancing an optimal portfolio aligned with their risk tolerance, particularly those outside the U.S. who lack access to traditional investment options. Inspired by The Missing Billionaires by James White and Victor Haghani, we address common mistakes investors make when assessing risk, which often leads to poor financial outcomes.

Through Undegen, users begin by taking a risk profile survey that helps them allocate assets across risk categories. This allocation is based on Merton portfolio calculations, offering an optimal split between low-risk (USDC with fixed yield) and high-risk (staked ETH and wrapped Bitcoin) assets. Users can then easily sign up with just an email and deposit funds, starting with USDC, to have their portfolio automatically built.

Once set up, the platform provides real-time visibility into their holdings via a dashboard. The system continuously monitors risk allocation, and users can update their risk profile at any time, triggering automatic rebalancing of their portfolio to ensure it aligns with their updated investment goals and risk tolerance. Undegen aims to offer a globally accessible, permissionless solution for portfolio optimization, making smart investing easy and adaptable for everyone.

We're streamlining the onboarding process by using Dynamic, which allows users to sign up using just their email. In the background, this creates an embedded wallet, offering a seamless experience without the complexity of traditional wallet setup. We're also generating a Safe smart wallet for each user. This wallet enables account abstraction, which lets us send transactions and handle gas fees on behalf of the user, enhancing usability.

Our system leverages a Safe module to initiate a transaction on the Safe smart account, calling the UndegenModule's rebalance() function. This function then calls back into the Safe account (where it has authorization as an approved module), performing a delegatecall to the UndegenRebalancer contract. The rebalance action is executed from there, dynamically adjusting the portfolio based on preset risk strategies.

One key advantage of this architecture is that the rebalancing occurs without needing explicit approvals, allowing everything to happen within a single transaction. The user still initiates the flow by specifying the desired allocation of risky assets (in USD) for their portfolio, with any excess automatically deposited into a USDC fixed-rate pool on Hyperdrive.

To ensure accurate conversions between token prices and USD, our contracts use Chronicle oracles, ensuring smooth and precise portfolio rebalancing. We also used shadcn components for both figma and front-end implementation.