A decentralized, algorithmic stablecoin pegged to USD and backed by cryptocurrency collateral. This project implements a MakerDAO-inspired protocol with enhanced security features and oracle protection.

The Decentralized Stablecoin system maintains a 1:1 peg with the US Dollar through overcollateralization with crypto assets (WETH and WBTC). The protocol is designed to be minimal, transparent, and entirely algorithmic with no governance.

• Exogenous Collateral: Backed by external crypto assets (WETH, WBTC)
• Dollar Pegged: Maintains 1 DSC = $1 USD value
• Algorithmic Stability: Decentralized minting mechanism
• Overcollateralized: Requires 200% collateralization ratio

• Deposit and withdraw supported collateral tokens (WETH/WBTC)
• Real-time USD value tracking via Chainlink price feeds
• Flexible collateral types with configurable price oracles

• Mint DSC tokens against deposited collateral
• Burn DSC to reduce debt or close positions
• Combined operations: deposit collateral and mint DSC in single transaction
• Redeem collateral by burning DSC

• Automated liquidation of undercollateralized positions
• 10% liquidation bonus for liquidators
• Partial liquidation support
• Health factor monitoring to prevent insolvency

• Stale Price Protection: Oracle library checks for stale Chainlink data (3-hour timeout)
• Pausable: Emergency pause functionality for admin
• ReentrancyGuard: Protection against reentrancy attacks
• Health Factor: Continuous solvency monitoring

• Adjustable liquidation threshold
• Configurable liquidation bonus
• Customizable minimum health factor
• Pause/unpause protocol operations

• DecentralizedStableCoin.sol: ERC20 token contract with controlled minting/burning
• DSCEngine.sol: Core protocol logic for collateral management, minting, and liquidations
• OracleLib.sol: Chainlink oracle wrapper with staleness checks

• Unit Tests: Comprehensive tests for core functionality
• Fuzz Tests: Invariant testing with continue-on-revert and fail-on-revert handlers
• Mock Contracts: Complete suite of mocks for isolated testing

• Solidity 0.8.19: Smart contract development
• Foundry: Development framework and testing
• OpenZeppelin: Battle-tested contract libraries
• Chainlink: Decentralized price oracles

• Foundry
• Git

git clone <repository-url>
cd stablecoin
forge install

forge build

# Run all tests
forge test

# Run with verbosity
forge test -vvv

# Run specific test file
forge test --match-path test/unit/DSCEngineTest.t.sol

# Deploy to local network
forge script script/DeployDSC.s.sol

# Deploy to testnet
forge script script/DeployDSC.s.sol --rpc-url $SEPOLIA_RPC_URL --broadcast

• Always maintain overcollateralization to avoid liquidation
• Monitor health factor regularly
• Be aware of price volatility in collateral assets
• Oracle staleness can freeze the protocol (by design)

MIT