Increment

The Problem:

USD-pegged stablecoins dominate the market, but DeFi is global and individuals/businesses move in and out of crypto through their local currencies (EURO, CAD, JPY, etc), resulting in exposure to forex risks.

Our Solution:

Hence, in the first iteration of the Increment protocol, we are building on-chain forex perpetuals to tackle these challenges.

Technologies Used:

Polygon:

For testing purposes, Increment is currently deployed on Kovan but in the near future Increment will complete trade executions on Polygon, a Layer 2 (L2) infrastructure. Side chains are one of the ways of scaling a Layer 1 blockchain such as Ethereum. As the name suggests, a sidechain runs in parallel or “on the side” of the main chain. Thus, the system maintains its fully decentralized, non-custodial framework on the blockchain.

Aave:

Increment's forex perpetuals support multi-collateral assets, such as aTokens. Thus, providing an additional utility for aToken holders on Aave. For future work, we hope to integrate with Aave's supply and borrow functions, empowering crypto holders to supply or borrow on Aave and hedge against forex risks all in one transaction.

Chainlink:

We used forex price feeds from Chainlink oracles as the Index Price for our perpetuals.

The Graph:

We created a subgraph (https://thegraph.com/explorer/subgraph/chinmaygopal931/increment) where users can potentially query data from our Kovan testnet.

Superfluid:

We would like to use Superfluid as a streamed token distribution mechanism that provides an interest earnings distribution for users that use our perpetuals platform. Thus, creating an incentive for users to use the platform.

ENS:

We support ENS domain names on supported networks, if the user has and ENS, we use reverse lookup to display their ENS in place of their address. Note: on Kovan this is not supported.

Piecing It Together:

Markus led the backend solidity engineering, where he created contracts for minting and redeeming virtual assets as well as the virtual automated market maker, inspired from Perpetual Protocol, for price discovery.

On the front end, Owen, Joe, Chinmay created a static page for the "Market" and "Dashboard" and then worked with Markus to hook up the contracts to the front end.

We were truly impressed when our long/short position were going through and the price was adjusting corresponding to the calculated numbers that we had completely manually before. We believe that there are currently no other products in DeFi that enables forex perpetuals with support for multi-collateral assets, so we are very proud of what we have accomplished at HackMoney.

Check out what we've built at increment.finance and click on "HackMoney App". Feel free to get testnet tokens from: https://testnet.aave.com/faucet and try it out yourself.