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Realtime CDP platform (1)

Introduction & Vision​

Although this spec sheet discusses mostly about single assets, research on multi stable coin assets associated with different state reserve can be issues! eventually creating a onchain forex, research is needed

Overview: Aura Protocol & rUSD Stablecoin​

Aura Protocol is a decentralized, multi-collateral lending platform built natively on RISEChain, enabling users to generate a censorship-resistant stablecoin, rUSD, by locking up approved collateral assets in smart contracts known as Vaults (Collateralized Debt Positions - CDPs). rUSD is designed to be pegged 1:1 to the US Dollar and aims to be a foundational, highly liquid stablecoin within the RISEChain ecosystem and beyond.

Value Proposition

  • Provide a Decentralized Stablecoin: Offer rUSD stablecoin.
  • Unlock Liquidity from Diverse Assets: Allow users to borrow rUSD against a wide range of standard crypto assets (BTC, ETH wrappers), yield-bearing assets (LSTs, LRTs), and eventually more exotic collateral.
  • Real-Time Operations: Leverage RISEChain's high TPS and low latency for instant CDP management, efficient liquidations, and responsive oracle updates.
  • Robust Risk Management

Target Users & Use Cases

  • DeFi Users: Seeking leverage, liquidity, or a stable medium of exchange without selling their underlying collateral.
  • Holders of Yield-Bearing Assets (LSTs/LRTs): Wanting to unlock liquidity from their staked/restaked assets while continuing to earn staking/restaking rewards.
  • Traders & Arbitrageurs: Utilizing rUSD for trading pairs, arbitrage opportunities, and maintaining peg stability.
  • Other DeFi Protocols on RISEChain: Integrating rUSD as a primary stablecoin for lending pools, DEX pairs, yield farming, etc.
  • Users Seeking Protection from Volatility: Holding rUSD as a stable store of value.

On-Chain Components​

  • VaultManager.sol: The heart of the protocol. Manages the creation, modification, and closure of individual CDPs (Vaults). Tracks collateral deposited and rUSD debt for each Vault. Enforces collateralization ratios.
  • rUSD.sol: The ERC20 (or RISEChain native equivalent) contract for the rUSD stablecoin. Handles minting (by VaultManager) and burning of rUSD.
  • CollateralRegistry.sol: A registry contract managed by governance that lists all approved collateral types. Stores risk parameters for each collateral type (e.g., Minimum Collateralization Ratio, Liquidation Ratio, Debt Ceiling, Stability Fee rate, Liquidation Penalty).
  • PriceOracleAggregator.sol: Securely provides real-time price feeds for all whitelisted collateral assets and rUSD (which should be pegged to $1). Aggregates prices from multiple independent oracle sources.
  • LiquidationEngine.sol: Implements the logic for liquidating undercollateralized Vaults. This could involve different mechanisms like Dutch auctions, English auctions, or direct sales to a stability pool or liquidators.
  • StabilityFeeTreasury.sol: Accumulates stability fees (interest paid by Vault owners on their rUSD debt). Governance decides on the use of these funds (e.g., operational costs, burning AURA tokens, funding protocol development).
  • EmergencyShutdownModule.sol: A contract allowing trusted parties (multisig or DAO) to trigger an emergency shutdown of the system in case of a severe exploit or market crisis. This would halt new rUSD minting and facilitate an orderly wind-down and redemption of collateral.
  • Governance.sol: Manages protocol upgrades, parameter changes (collateral types, risk parameters, fees), and controls the StabilityFeeTreasury.
  • (Optional) PSM.sol (Peg Stability Module): A contract that allows users to swap other recognized stablecoins (e.g., USDC, USDT on RISEChain) for rUSD at a 1:1 rate (within certain limits and fees), helping to maintain the rUSD peg.

Off-Chain Components & Infrastructure

  • Liquidation Bots: Monitor Vaults for under-collateralization and trigger liquidation transactions via LiquidationEngine.sol. These are economically incentivized.
  • Oracle Network Nodes & Price Feed Providers: Off-chain entities that feed price data into the on-chain PriceOracleAggregator.sol.
  • User Interface (UI) & API Gateway: Web and programmatic interfaces for users to interact with Aura Protocol (create Vaults, manage debt/collateral, etc.).
  • Keeper Network: Automated bots that perform routine on-chain maintenance tasks, such as:
    • Updating stability fee accruals.
    • Triggering oracle price updates on PriceOracleAggregator.sol if it doesn't update automatically.
    • Initiating auction steps in the LiquidationEngine.sol.
  • Indexer & Analytics Platform: Monitors on-chain events, provides historical data, system health dashboards, and user-specific CDP information.

Concepts​

Collateralized Debt Positions (CDPs) / Vaults

  • A smart contract (managed by VaultManager.sol) where a user locks up collateral to mint rUSD.
  • Each Vault is independent in terms of its specific collateral and debt, but risk parameters are global per collateral type.
  • Users maintain ownership of their collateral as long as their Vault remains sufficiently collateralized.
  • Key CDP Operations: openVault(), depositCollateral(), withdrawCollateral(), mintRUSD(), repayRUSD(), closeVault().

rUSD Stablecoin: Minting, Burning, Stability Mechanisms

  • Minting: rUSD is minted when a user borrows against their collateral in a Vault. The amount of rUSD that can be minted is limited by the value of the deposited collateral and the specific collateral type's Minimum Collateralization Ratio (MCR) and Debt Ceiling.
  • Burning: rUSD is burned when a user repays their debt in a Vault. To reclaim all collateral, the user must repay all minted rUSD plus accrued stability fees.
  • Stability: Primarily maintained through:
    • Overcollateralization: All rUSD is backed by more than $1 worth of collateral.
    • Efficient Liquidations: Quickly removing risky CDPs from the system.
    • Arbitrage: If rUSD < 1,userscanbuyitcheaplyonthemarket,repaytheirCDPdebtatpar,andunlockmorethan1, users can buy it cheaply on the market, repay their CDP debt at par, and unlock more than 1 of collateral (profit). If rUSD > $1, users can mint more rUSD from their CDPs, sell it on the market for a profit, effectively increasing supply.
    • (Optional) Peg Stability Module (PSM): Direct 1:1 swaps with other trusted stablecoins.
    • Stability Fees: Adjusting the cost of borrowing rUSD can influence its supply and demand.

Collateral Types & Risk Parameters

Managed by CollateralRegistry.sol and set by governance. For each whitelisted collateral asset:

  • assetAddress: The token contract address.
  • priceFeedIdentifier: Identifier to fetch its price from PriceOracleAggregator.sol.
  • minimumCollateralizationRatio (MCR) / loanToValue (LTV): The minimum ratio of collateral value to rUSD debt value required to mint new rUSD or withdraw collateral. E.g., 150% MCR means for every 100 rUSD minted, at least $150 of this collateral type must be backing it. (LTV = 1/MCR, so 150% MCR = ~66.67% LTV).
  • liquidationRatio (LR): If a Vault's collateralization ratio falls below this, it becomes eligible for liquidation. LR is typically lower than MCR (e.g., 130%).
  • liquidationPenalty: A fee charged on the collateral value during liquidation, part of which may go to the liquidator and part to the protocol/insurance.
  • stabilityFeeRate: The annualized interest rate charged on the rUSD debt for this collateral type. Can vary per collateral to reflect risk.
RESEARCH

Exotic Collateral (Future Exploration)
Examples: Real-World Assets (RWAs) tokenized on RISEChain, NFTs, LP tokens from other protocols.
Requires extremely robust oracles, specialized risk assessment, and likely very conservative risk parameters.
Aura will have a framework for governance to propose, vet, and approve such assets.

Interest Rates / Stability Fees

  • An annualized fee charged on the outstanding rUSD debt in a Vault.
  • Accrues continuously (or at frequent intervals) and is added to the user's debt.
  • Acts as a cost of borrowing and a lever for monetary policy (governance can adjust fees to influence rUSD supply/demand).
  • Collected fees go to the StabilityFeeTreasury.sol.
  • Rates can differ per collateral type based on its risk profile.

Possible Mechanisms (implemented in LiquidationEngine.sol):

  • Dutch Auctions: Collateral is offered starting at a high price that gradually decreases until a buyer (liquidator) steps in. Fast but can lead to worse execution if not enough bidders.
  • English Auctions: Bids start low and increase. More price discovery but can be slower.
  • Fixed Spread / Direct Sale to AMM: Sell collateral on a whitelisted DEX (e.g., ADEX if Aura integrates, or other RISEChain AMMs) at a slight discount to market price. Fast and simple if sufficient DEX liquidity.
  • Sale to a Stability Pool: Users can deposit rUSD into a Stability Pool. During liquidations, this rUSD is used to repay the CDP's debt, and the Stability Pool LPs receive the discounted collateral. (Similar to Liquity's model).

Appendix​