Defiris

Partial interest rate swaps democratized.

The project works by having a contract that will send stable coins to different lending pools : 88mph, Aave and Compound.

Example : users deposit funds in Dai for Aave, the others Usdc for compoud. At the end of the period they split at the pro-rata of their total contribution the interest gained in those lending pools. This has as effect three things :

• you short/decrease your exposure to the pool in which you deposit into, long the other pools
• hedge your risk of a single pool/asset
• you get exposed to yield on assets you do not own, useful if you do not want to hold a given stable coin but would like having exposure to its yield
• leverage of your yield if there is a big imbalance in the pools

Like for interest rate swaps in real life we have Variable to Variable interest rate swaps for example for swapping interest on stablecoins in Aave, Compound or both Compound and Aave.

For the fixed interest rate swap we use 88mph to have a fixed interest rate swap against a variable one in Compound and Aave.

Mocked the interfaces for the Aave and Compound contracts instead of going on test net to gain on development time. The tests are written using ethers and hardhat. Started by doing super simple contracts that would deposit into Aave/Compound/88mph and then complexified/cleaned up.

For the frontend a simple React project with ethers and Metamask connected to the local rpc network.

I was particularly happy on being able to ship something as it was my first hackathon alone.