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Yield-Bearing Project

Quick Workflow

1. Initial Deployment and Token Minting
   |-> Developer deploys smart contract with 1 ETH
   |-> Contract mints tokens
       |-> Tokens represent the total supply for the protocol
       |-> Tokens will be used for distribution and yield generation

2. Airdrop to Whitelisted Participants
   |-> Tokens distributed to whitelisted addresses
       |-> Half of the minted tokens allocated for distribution
       |-> Participants receive their tokens securely
   |-> Merkle tree used for secure distribution
       |-> Ensures proof of eligibility
       |-> Prevents double-claiming of tokens

3. Participant Deposits
   |-> Participants deposit tokens
       |-> Participants transfer received tokens back into the contract
       |-> Tokens are locked in the contract for yield generation
   |-> Tokens used to generate yield
       |-> Deposited tokens contribute to the total pool
       |-> Yield is calculated based on the pooled tokens

4. Yield Generation
   |-> Yield generated over 30 days
       |-> Yield accrues daily based on the total deposits
       |-> Yield rate determined by the contract parameters
       |-> Total yield is added to the contract’s balance over time

5. Withdrawals During Yield Period
   |-> Participants can withdraw tokens and yield
       |-> Participants can withdraw deposited tokens plus accrued yield
       |-> Withdrawals reduce the participant's deposit amount
   |-> Merkle tree reconstructed on withdrawals
       |-> Merkle tree is updated to reflect withdrawals
       |-> Prevents double-claiming and ensures accurate balance tracking

6. Final Yield Distribution
   |-> Remaining tokens and yield distributed at end of period
       |-> After 30 days, remaining tokens and yield are calculated
       |-> Distribution proportional to each participant's deposit
   |-> Distribution done using Merkle tree
       |-> Merkle tree used to verify participant balances
       |-> Ensures fair and secure final distribution

Testing the Secure Claiming

Screenshot 2024-07-04 at 3 29 23 PM

Workflow Steps

1. Initial Deployment and Token Minting

Deployment: The developer deploys a smart contract with an initial seed amount of one ETH. Token Minting: The contract mints a certain number of tokens that will be used throughout the protocol.

2. Airdrop to Whitelisted Participants

Airdrop: Half of the minted tokens are distributed to a set of whitelisted addresses. Security: The distribution uses Merkle trees to ensure security and prevent double-claiming.

3. Participant Deposits

Deposits: Participants who receive tokens can deposit them back into the smart contract. Yield Eligibility: Depositing tokens allows participants to start earning yield on their holdings.

4. Yield Generation

Yield Accumulation: The total tokens deposited by all participants are used to generate yield. Duration: The yield generation period lasts for thirty days.

5. Withdrawals During Yield Period

Withdrawals: Participants can withdraw their tokens along with any accumulated yield at any time during the thirty-day period. Security Update: When a withdrawal occurs, the Merkle tree is reconstructed to ensure no double-claiming takes place.

6. Final Yield Distribution

End of Period: At the end of the thirty-day yield period, the remaining tokens and the generated yield are distributed proportionally to all participants who have not withdrawn their tokens. Security: This final distribution also uses Merkle trees to ensure secure and accurate distribution of tokens and yield.

Interaction

Setting Up Development Environment

  1. Start Local Blockchain:

    • Open Terminal 1: 
      npx hardhat node

    This starts a local Ethereum blockchain with accounts pre-funded with fake ETH for testing.

  2. Compile Contracts:

    • Open Terminal 2: 
      npx hardhat compile

    Compiles your Solidity contracts defined in the project.

Contracts Interactions

  1. Run Airdrop Script:
npx hardhat run --network localhost scripts/airdrop.js

Executes the airdrop script to distribute tokens based on a specified logic.

  1. Check Airdrop Balance:
  • Run: 
    npx hardhat run --network localhost scripts/airdropChackbalance.js

Copy and paste the airdrop address to check the balance.

Testing Merkle Proofs

  1. Test Claims using Merkle Proofs:
npx hardhat test

Runs tests to validate claiming tokens using Merkle proofs.

Yield Bearing Contract Interactions

  1. Deploy Yield Bearing Contract:
npx hardhat run --network localhost scripts/deploy.js

Deploys the Yield Bearing contract on the local blockchain.

  1. Participant Interaction:
npx hardhat run --network localhost scripts/participate.js

Participants interact with the contract by depositing tokens.

  1. Calculate Yield:
npx hardhat run --network localhost scripts/calculateYield.js

Calculates the yield participants can earn based on their deposits.

  1. Withdraw Yield:
npx hardhat run --network localhost scripts/withdraw.js

Participants withdraw their calculated yield.

  1. Verify Zero Yield After Withdrawal:
npx hardhat run --network localhost scripts/calculateYield.js

Ensure that the withdrawn account shows zero yield after withdrawal.

  1. Final Distribution:
npx hardhat run --network localhost scripts/finalDistribution.js

Automatically triggers after 30 days to distribute remaining yields.

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