The contracts were finalized and the frontend for the application was build this week.

There are two main contracts the core contract which is an ERC 4626 and a wrapper contract which has functions that consider slippage and a few gateway functions. Gateway functions are helpful in cases where user is willing to either invest or withdraw in matic instead of wmatic which is the vaults main asset.

The frontend was build using scaffold-eth hooks in nextjs. The cool part of the scaffold-eth hooks is that it has an inbuild polling system that will automatically fetch and update the new data after every pollingInterval which I have currently set to be 30 seconds. The frontend consists of two main pages:

• Home Page: This is where all the depositing and redeeming takes place

• Vault Stats Page: This is where all the stats related to how the vault is currently performing is displayed

Feel free to explore and invest in LSD 💊🙌

Some important links:

• Deployed Webapp

• 
  

• Devfolio Project Submission

• Source Code

After looking into ERC 4626 I realized that it was designed specially to work with erc20 token as the asset in the vault, in this case maximum transaction are dependent on the native coin and wrapping it will pointlessly increase the gas fees hence, some of the functions from ERC 4626 won’t be implemented but most of the functions will be implemented and with the same signature.

While solving the speed run ethereum challenges in the first four weeks I felt that scaffold-eth 🏗️ is a great template to quickly build dapps and their frontends as well as I got to know that there is a version 2 being developed currently that has a better tech stack, better UI, clean code and much more. So I decided to use se 2 as the template for LSD 💊

I am currently in the process of building the smart contract and will be spending the next and the final week completing the smart contract, testing the contract, building the front end and finally shipping 🚀 LSD 💊

I was looking for a way in which I can track users shares based on their investments in LSD and I found out about ERC 4626 which is a tokenized vault standard which fits perfectly for my application. Users will receive lsd tokens which will be minted based on the users investment amount and the current status of balances in the vault. They can then redeem these tokens to receive their invested matic along with the yield.

Many other design decision were brainstormed on like:

• An option for owner to turn on/off leverage staking (helpful in cases where leverage staking ends up providing loss instead of profit)

• Ideal borrow percentage to avoid liquidation (for now 30-40% but can be updated by the owner)

• Formula to calculate the shares being provided on investment

  (matic being invest * lsd minted) / matic balance in vault

  where, the matic balance in vault is calculated based on the matic that will be received on settling all the investments

The whole design of the application was brainstormed this week and further design related decisions will be taken on the fly while building LSD 💊

Quick shout out to @mneelansh15 🫡, he helped through certain road blocks 🚧 that I encountered while brainstorming on the design.

Before I get started on the project, we had a DeFi presentation session this week where every fellow was given specific protocol/project in DeFi to study about and give a 4 minute presentation explaining the same in brief to all the other fellows. The topic assigned to me was Augur. Here is the PPT that I had created for the presentation:

https://docs.google.com/presentation/d/176Sss2n1Qxe3zpFYrYgRg7gbwi58nunS4q7NJiPxK_I/edit?usp=share_link

Augur was a decentralized prediction market platform. Studying about augur helped me learn about decentralized prediction markets which honestly I had no idea about. This activity helped me learn a lot about many new DeFi protocols/projects that I was not aware of and were very well explained and presented by my fellows @EIF.

I spent rest of the week studying about liquid staking derivatives and leverage staking derivatives. The core of my project idea is to create an easy application where users just invest and withdraw Matic 💜 and the smart contract takes care of the whole procedure to generate yield.

The best suited name for the application seems to be LSD 💊 (don’t ask why the pill emoji 😜) To know more about the project: Project Proposal 🔗

I spent some time studying Stader, Aave and Balancer’s smart contract since LSD’s contract will be interacting with these contracts to create the circuit for generating yield.