The most important and established lending protocols seem to not offer self repaying loans. It is a feature I find of extreme interest as it removes the pain point of regularly swapping the yield on my collateral, and possibly the rewards granted for using the protocol, to the principals asset to the repay my loan.
Users can create Vaults through which they are able to supply collateral to any Aave v2/v3 fork as well as any Compound fork. Each Vault allows for only one loan to be active at any time.
By design, each vault accrues its collateral as explained in the docs of the supported protocols. This yield is regularly swapped for the principal's asset at the best rate by leveraging 1inch's pathfinder API (called through custom oracles or Chainlink's Any API system) and used to repay a portion of the loan. This project is a proof of concept and although contracts leveraging Chainlink are written, and should correctly behave, they are not yet officially supported.
The biggest problem was creating a standard for interoperating with the lending protocols. I had to create custom built libraries exposing the same interfaces to execute operations on different underlying logic. In addition testing the chainlink any api intergration was very complex, hence I decided to build on the side a servie that would replicate such functionality which proved to be quite fun, especially because I managed to do it ;)
Architecturing the inner workings of such a protocol has been quite the challenge and I had to review and redesign it a few times before getting there.
Not being able to query for Forex data on testnet has forced me to figure out how to fork mainnet locally.
I am happy to ave built a system with identical functionality to Chainlink's Any API service as well as managed to create standardized libraries to interact with various protocols.
I understood the importance of standards as it is truly annoying when forks make small changes to the codebase; this heavily impacts builders that would like to build on top of such protocols.
- Integrate additional protocols by finishing up & writing new delegates (0vix, Comp, etc)
- move towards a proxy model rather than deploying a whole new contract for every Vault
- Compound is ready to be supported, hence deploying on Ethereum seems a good way forward
$ npx hardhat node
$ yarn deploy
$ cd client && yarn dev