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Protocol
Contract Design

Modular smart contract architecture for secure yield generation

Contract Design

The HedgeCore protocol comprises a modular smart contract architecture engineered to generate yields while maintaining security and operational adaptability. The architecture isolates concerns between token administration, yield routing, and strategy execution.

Architecture Overview

Core Contracts

1. StakeableAssetImpl (sUSD Token)

Inherits from OpenZeppelin upgradeable components:

  • ERC20Upgradeable: standard token interface with upgradeability
  • ERC20PermitUpgradeable: enables gasless approvals (EIP-2612)
  • Ownable2StepUpgradeable: two-phase ownership transfer for security
  • PausableUpgradeable: allows emergency pause of critical functions
  • ReentrancyGuardUpgradeable: prevents nested reentrant calls

2. StrategyRouter

Administers yield generation strategies:

  • Routes USDC deposits to Venus Protocol
  • Manages strategy weights and allocations
  • Controls withdrawals from yield sources
  • Owner-managed strategy configuration

3. VenusUSDVault

ERC-4626 compliant vault for Venus integration:

  • Deposits USDC into Venus Protocol
  • Manages vUSDC tokens
  • Tracks yield accrual
  • Provides standardized interface for router

Key Features

Token Administration (StakeableAssetImpl)

  • Soul-bound logic: Enforced via custom _update() hook that locks transfers by default.
  • Duration-based locks: Implemented using unlockAt mapping per wallet.
  • Manual unlocking: Participants must invoke unlock() to enable transferability.
  • Whitelist control: DEX and pool addresses can receive whitelist via setDex().
  • Reward generation: Admin can issue locked or placeholder-locked sUSD using rewardMint().
  • Emergency functions: Includes pause(), adminUnlock(), sweepUSDC().

Yield Production (StrategyRouter + VenusUSDVault)

  • Automated routing: USDC deposits automatically route to Venus Protocol
  • Yield optimization: Deposits earn lending interest on Venus
  • Strategy management: Owner can adjust weights and introduce new strategies
  • Transparent yields: Venus APY publicly verifiable on-chain
  • Protocol fee: 7% of Venus yields retained as protocol revenue

Events

All critical actions emit events for external tracking and transparency:

  • Deposited, Unlocked, RewardsDistributed, EarlyRedeemed
  • DexWhitelisted, TreasurySweep, SpecialAddressSet
  • StakedTokensBurned, EmergencyWithdraw

These events facilitate frontend updates, subgraph indexing, and audit logging.

Versioning and Deployment

  • Solidity version: ^0.8.28
  • Deployed on: Binance Smart Chain (BSC)
  • USDC target: BSC USDC uses 18 decimals
  • Upgradeability: StakeableAssetImpl uses transparent proxy pattern for upgradeability
  • Venus Integration: Connects to Venus Protocol's vUSDC market on BSC
  • Multisig recommended: Contract ownership should transfer to Gnosis Safe multisig for operational security

Gas and Efficiency

The contract optimizes for gas usage:

  • Batch operations available for minting and deposit (batchDepositAndMint)
  • Single ERC20 balance storage per participant
  • Lock information stored in lightweight uint40 timestamps

Yield Flow Architecture

User Deposits USDC
       ↓
StakeableAssetImpl (mints sUSD)
       ↓
StrategyRouter (routes to strategies)
       ↓
VenusUSDVault (deposits to Venus)
       ↓
Venus Protocol (generates yield)
       ↓
Protocol retains 7% fee
       ↓
93% of yield distributed to users

Summary

The HedgeCore protocol combines soul-bound token mechanics with automated yield generation through Venus Protocol. This modular design provides participants with transparent, sustainable yields while maintaining the security and non-transferability features essential to the protocol's mission. The 7% protocol fee ensures long-term sustainability while participants benefit from 93% of generated yields.

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