Bitcoin-Backed Stablecoin Smart Contract Implementation

Clarinet.toml

@@ -1,21 +1,19 @@
 [project]
-name = "bitcoin-backed-stablecoin"
-description = ""
+name = 'bitcoin-backed-stablecoin'
+description = ''
 authors = []
 telemetry = true
-cache_dir = "./.cache"
-
-# [contracts.counter]
-# path = "contracts/counter.clar"
-
+cache_dir = './.cache'
+requirements = []
+[contracts.backed-stablecoin]
+path = 'contracts/backed-stablecoin.clar'
+clarity_version = 2
+epoch = 2.5
 [repl.analysis]
-passes = ["check_checker"]
-check_checker = { trusted_sender = false, trusted_caller = false, callee_filter = false }
+passes = ['check_checker']
 
-# Check-checker settings:
-# trusted_sender: if true, inputs are trusted after tx_sender has been checked.
-# trusted_caller: if true, inputs are trusted after contract-caller has been checked.
-# callee_filter: if true, untrusted data may be passed into a private function without a
-# warning, if it gets checked inside. This check will also propagate up to the
-# caller.
-# More informations: https://www.hiro.so/blog/new-safety-checks-in-clarinet
+[repl.analysis.check_checker]
+strict = false
+trusted_sender = false
+trusted_caller = false
+callee_filter = false

README.md

@@ -0,0 +1,152 @@
+# Bitcoin-Backed Stablecoin Smart Contract
+
+## Overview
+
+This Clarity smart contract implements a Bitcoin-backed stablecoin system on the Stacks blockchain, providing a robust mechanism for creating, minting, redeeming, and liquidating crypto-collateralized stablecoins.
+
+## Features
+
+- **Vault Management**
+
+  - Create Bitcoin-collateralized vaults
+  - Mint stablecoins against Bitcoin collateral
+  - Redeem stablecoins
+  - Liquidate undercollateralized vaults
+
+- **Advanced Security**
+
+  - Strict authorization checks
+  - Input validation
+  - Comprehensive error handling
+  - Configurable governance parameters
+
+- **Oracle Integration**
+  - Multiple price oracle support
+  - Bitcoin price tracking
+  - Price update mechanism
+
+## Contract Architecture
+
+### Key Components
+
+1. **Vaults**
+
+   - Unique vault creation for each user
+   - Tracks collateral amount, minted stablecoins, and vault creation timestamp
+   - Supports multiple vaults per user
+
+2. **Stablecoin Configuration**
+
+   - Configurable name and symbol
+   - Dynamic total supply management
+   - Adjustable collateralization ratio
+
+3. **Governance**
+   - Contract owner controls critical parameters
+   - Ability to update collateralization ratio
+   - Oracle management
+
+### Error Handling
+
+The contract includes detailed error codes for various scenarios:
+
+- Unauthorized actions
+- Insufficient balances
+- Invalid collateral
+- Undercollateralization
+- Oracle price unavailability
+- Liquidation failures
+- Minting limit exceedance
+
+## Key Functions
+
+### `create-vault`
+
+- Creates a new vault for a user
+- Requires valid collateral amount
+- Generates a unique vault ID
+
+### `mint-stablecoin`
+
+- Allows minting stablecoins against collateral
+- Validates:
+  - Vault ownership
+  - Collateralization ratio
+  - Minting limits
+  - Oracle price
+
+### `redeem-stablecoin`
+
+- Enables users to redeem stablecoins
+- Reduces vault's minted amount
+- Updates total supply
+
+### `liquidate-vault`
+
+- Triggers vault liquidation when collateralization falls below threshold
+- Prevents self-liquidation
+- Removes undercollateralized vault
+
+### Governance Functions
+
+- `add-btc-price-oracle`: Add trusted price oracles
+- `update-btc-price`: Update Bitcoin price
+- `update-collateralization-ratio`: Adjust system parameters
+
+## Configuration Parameters
+
+- **Collateralization**
+
+  - Minimum ratio: 150%
+  - Liquidation threshold: 125%
+
+- **Fees**
+
+  - Minting fee: 0.5%
+  - Redemption fee: 0.5%
+
+- **Limits**
+  - Maximum mint limit: 1,000,000 tokens
+  - Maximum Bitcoin price: 1,000,000,000,000
+
+## Security Considerations
+
+- Strict access controls
+- Price oracle validation
+- Comprehensive input validation
+- Prevents excessive vault and token creation
+- Configurable liquidation mechanisms
+
+## Installation and Deployment
+
+### Prerequisites
+
+- Stacks blockchain
+- Clarity smart contract support
+- Bitcoin price oracle infrastructure
+
+### Deployment Steps
+
+1. Deploy the contract on Stacks
+2. Configure initial parameters
+3. Add trusted price oracles
+4. Set initial collateralization ratio
+
+## Potential Improvements
+
+- Dynamic fee adjustments
+- More granular liquidation mechanisms
+- Enhanced oracle redundancy
+- Cross-chain collateral support
+
+## Disclaimer
+
+This smart contract is provided as-is. Users and developers should conduct thorough audits and testing before production use.
+
+## License
+
+This project is licensed under the MIT License. See the [LICENSE](LICENSE) file for details.
+
+## Contributing
+
+We welcome contributions to DAF Smart Contract! Please see our [Guide](CONTRIBUTING.md) for details on how to get started.