DSCEngine - Decentralized Stablecoin System

Overview

DSCEngine is a Solidity-based decentralized stablecoin system designed to maintain a 1:1 peg with the U.S. dollar using exogenous collateral. This contract implements a minimalistic yet robust stablecoin model with the following features:

• Dollar Pegged: Maintains $1 peg per token.

• Exogenous Collateral: Uses external assets like WETH and WBTC as collateral.

• Algorithmically Stable: Ensures overcollateralization to preserve stability.

Inspired by MakerDAO's DAI but simplified to remove governance, fees, and additional complexities, DSCEngine provides a permissionless platform for decentralized finance (DeFi).

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Key Features

• Collateral Deposits & Redemptions: Users can deposit collateral, mint stablecoins, redeem collateral, and burn stablecoins.

• Liquidations: Implements liquidation mechanisms to maintain system health and ensure overcollateralization.

• Health Factor Monitoring: Tracks and enforces minimum health factors to prevent undercollateralization.

• Reentrancy Protection: Leverages OpenZeppelin's ReentrancyGuard to secure against reentrancy attacks.

• Price Feeds Integration: Uses Chainlink price oracles for accurate asset valuation.

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Getting Started

Prerequisites

• Foundry (Smart contract development framework)

• OpenZeppelin Contracts (Security libraries)

• Chainlink Price Feeds (Oracle integration)

Installation

1. Clone the repository:

git clone https://github.com/arefxv/DSCEngine.git
cd DSCEngine

2. Install dependencies:

forge install

3. Compile contracts:

forge build

4. Run tests:

forge test

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Usage

Deploy Contract

1. Configure your deployment parameters in script/Deploy.s.sol.

2. Deploy using Foundry:

forge script script/Deploy.s.sol --rpc-url <YOUR_RPC_URL> --private-key <YOUR_PRIVATE_KEY> --broadcast

Contract Functions

• Deposit Collateral:

depositCollateral(address tokenCollateral, uint256 amount)

Deposits collateral tokens into the contract.

• Mint Stablecoins:

mintDsc(uint256 amountToMint)

Mints decentralized stablecoins based on the deposited collateral.

• Redeem Collateral:

redeemCollateral(address tokenCollateral, uint256 amount)

Withdraws collateral while ensuring sufficient health factor.

• Liquidate Under-Collateralized Accounts:

liquidate(address collateral, address user, uint256 debtToCover)

Allows third parties to liquidate unhealthy positions for a reward.

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Security Features

1. Reentrancy Protection: Utilizes OpenZeppelin's ReentrancyGuard to prevent reentrancy attacks.

2. Health Factor Monitoring: Enforces minimum collateral ratios to safeguard against insolvency.

3. CEI Pattern: Implements "Checks-Effects-Interactions" to ensure secure execution of functions.

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Author

ArefXV

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