The Activation Layer of Concentrated liquidity
Our Thesis
We’re building on the premise that the $3 billion in Total Value Locked (TVL) in Uniswap v3 positions represents an untapped resource for DeFi innovation. By unlocking this liquidity, we aim to catalyze a new era of capital efficiency and cross-chain composability.
Vision
We envision a DeFi ecosystem where liquidity is fluid, efficient, and maximally utilized across multiple chains. Chad Finance strives to be the cornerstone of this new paradigm, enabling seamless liquidity flow and fostering innovation in DeFi.
Philosophy
Our approach is rooted in three core principles and a dual engine structure inspired by Flashbots:
- Open Access: Democratizing DeFi by providing tools that allow all participants to maximize their capital efficiency.
- Interoperability: Breaking down barriers between chains to create a truly interconnected DeFi ecosystem.
- Sustainable Innovation: Developing solutions that not only solve immediate challenges but also lay the groundwork for long-term DeFi evolution.
Inspired by Flashbots' dual-engine approach, we operate through two semi-autonomous yet tightly coupled engines:
- Chad Finance: The protocol that brings capital efficiency and acts as the activation layer of locked liquidity in DeFi. Chad Finance unlocks the full potential of liquidity provision in an Autonomous Financial Ecosystem, enabling users to leverage their Uniswap V3 LP positions across multiple chains.
- Pyrax Labs: The foundation of Chad Finance and the research core of the protocol. Pyrax Labs shapes the protocol direction, studies the liquidity market in DeFi, identifies strategic opportunities for protocol maneuvering, and establishes thought leadership in the space.
This dual engine structure allows us to maintain a long-term research-oriented vision while simultaneously delivering innovative, market-driven products.
Technical Overview
Chad Finance introduces cUSD, an overcollateralized stablecoin minted against Uniswap V3 LP positions. Key components include:
- Cross-Chain Collateralization: Utilizing GMP for secure messaging between source chains and Scroll.
- Timelocked Vault Contracts: Ensuring the security of collateralized assets.
- Peg Stability Module (PSM): Maintaining cUSD's value using USDT/USDC backing.
- ChadSwap: A native DEX on Scroll for efficient cUSD utilization.
Protocol Architecture
- Collateralization Process:
- Users lock Uniswap V3 LP tokens as collateral on source chains.
- Vault contracts with timelock mechanisms secure the collateral.
- Cross-Chain Messaging:
- The interoperability provider facilitates secure communication through General Message Passing between chains.
- Collateralization data is transmitted to the Scroll chain.
- cUSD Minting:
- Smart contracts on Scroll manage the minting of cUSD based on collateral value.
- Repayment and Liquidation:
- Users can repay loans using USDT or USDC on source chains.
- Liquidation is triggered if collateral value falls below the required ratio.
Innovative Features
- Omnichain Liquidity Utilization: Leveraging LP positions across multiple chains.
- Enhanced Capital Efficiency: Allowing users to borrow against LP positions without forfeiting rewards.
- Risk Mitigation Tools: Providing mechanisms to hedge against impermanent loss.
Ecosystem Impact
Chad Finance aims to:
- Increase overall TVL in the DeFi ecosystem by unlocking previously static liquidity.
- Foster the development of new DeFi strategies and products built on top of our protocol.
- Contribute to the growth and maturation of the Scroll ecosystem.
Open-Source Commitment
As a public goods protocol, Chad Finance is committed to open-source development. We believe that by sharing our innovations, we can accelerate the growth of the entire DeFi ecosystem.
Become a Chad
Join us on our mission to revolutionize DeFi liquidity and unlock the full potential of concentrated liquidity positions. Chad Finance is always seeking visionary thinkers, blockchain developers, and DeFi experts to contribute to our ecosystem.
We're looking for:
- Blockchain developers with experience in Solidity and cross-chain protocols
- DeFi researchers passionate about liquidity optimization and market dynamics
- Product managers with a deep understanding of the DeFi landscape
- Community managers to help grow and nurture our ecosystem
If you're excited about pushing the boundaries of DeFi and want to be part of shaping the future of decentralized finance, we want to hear from you.
How to join: Reach out to us at biz@chadfinance.xyz if you fall in any of these profiles, or feel free to suggest a role or profile of your own.
We don’t care for CVs, we wanna hear your story!