Reference System for DeFi (RSD)

Author: Apolo San
License: MIT
Version: 1.0.0

Overview

Reference System for DeFi (RSD) is an innovative DeFi protocol that implements a dynamic supply adjustment mechanism for an ERC20 token. The system automatically adjusts token supply based on trading volume and market activity, combined with a unique reward system and gambling mechanism.

🚀 Key Features

🔄 Dynamic Supply Adjustment

Elastic Supply: Token supply automatically adjusts based on trading volume and market metrics
Optimal Policy Algorithm: Uses machine learning-inspired algorithms to determine supply changes
Random Policy Fallback: Implements random adjustments for increased unpredictability

💰 Economic Mechanisms

Crowdsale Functionality: Built-in token sale mechanism with configurable duration and rates
Miner Rewards: Automatic rewards for block miners (10% of reward pool)
Owner Rewards: Configurable rewards for contract owner
Proof of Bet (PoBet): Gambling mechanism where users can win pooled tokens

🛡️ Security Features

OpenZeppelin Integration: Built on battle-tested OpenZeppelin contracts
Access Control: Owner-only functions for critical parameters
SafeMath: Protection against integer overflow/underflow
Comprehensive Testing: Extensive test suite covering all functionality

📊 Economic Model

Supply Adjustment Algorithm

The RSD token implements a sophisticated supply adjustment mechanism:

1. Volume Tracking: Monitor trading volume over transaction intervals
2. Metric Calculation: Calculate distance between target and current supply
3. Policy Decision: Choose between optimal or random adjustment policy
4. Supply Adjustment: Mint or burn tokens based on policy decision
5. Reward Distribution: Distribute rewards to miners and pools

Key Parameters

Parameter	Default Value	Description
`ALPHA`	120	Learning rate for optimal policy
`EPSILON`	120	Threshold for policy selection
`EXPANSION_RATE`	1000	Rate of market cap expansion (0.1%)
`SALE_RATE`	2000	Crowdsale conversion rate
`CROWDSALE_DURATION`	7889229	Crowdsale duration (3 months)

🛠️ Installation & Setup

Prerequisites

Node.js >= 12.0.0
npm or yarn
Truffle Framework
Ganache CLI (for local development)

Installation

# Clone the repository
git clone https://github.com/apolosan/rsd.git
cd rsd

# Install dependencies
npm install

# Install Truffle globally (if not already installed)
npm install -g truffle

# Install Ganache CLI for local blockchain
npm install -g ganache-cli

Environment Setup

Create a .secret file with your mnemonic phrase:

echo "your twelve word mnemonic phrase here" > .secret

Configure network settings in truffle-config.js as needed.

🚀 Usage

Local Development

Start Ganache:

ganache-cli

Compile Contracts:

truffle compile

Deploy Contracts:

truffle migrate --network development

Run Tests:

truffle test

Running the Simulation

The project includes a comprehensive JavaScript simulation:

node simulation/rsd_simulation.js

This simulation demonstrates:

Multi-account trading scenarios
Supply adjustment mechanisms
Reward distribution
Price estimation algorithms

Deployment to Testnet

Deploy to BSC Testnet:

truffle migrate --network bsc_testnet

📋 Smart Contract API

Core Functions

ERC20 Standard Functions

function transfer(address recipient, uint256 amount) external returns (bool)
function approve(address spender, uint256 amount) external returns (bool)
function transferFrom(address sender, address recipient, uint256 amount) external returns (bool)

Crowdsale Functions

function crowdsale(address beneficiary) public payable

Allows users to purchase RSD tokens by sending ETH
Rate: 1 ETH = SALE_RATE * 1.5 RSD tokens
Maximum purchase: 50,000 RSD per transaction

Administrative Functions (Owner Only)

function updateSaleRate(uint16 rate) external onlyOwner
function updateCrowdsaleDuration(uint128 timestampDuration) external onlyOwner
function updateExpansionRate(uint16 expansionRate) external onlyOwner
function withdrawSales(address payable account) external onlyOwner

Utility Functions

function burn(uint256 amount) external
function generateRandomMoreThanOnce() external
function obtainRandomNumber(uint256 modulus) external

Events

event SupplyAdjustment(bool reduction, uint256 amount)
event PolicyAdjustment(bool reduction, uint16 percentageFactor)
event PoBet(address winner, uint256 amount)
event Reward(address miner, uint256 amount)
event Pool(uint256 amount)

🧪 Testing

The project includes comprehensive tests covering:

Contract Deployment: Verify proper initialization
ERC20 Functionality: Standard token operations
Crowdsale Mechanism: Token purchase and limits
Supply Adjustment: Dynamic supply changes
Reward System: Miner and owner rewards
Random Number Generation: Cryptographic randomness
Access Control: Owner-only functions

Run specific test categories:

# Run all tests
truffle test

# Run with gas reporting
truffle test --reporter eth-gas-reporter

🏗️ Architecture

Contract Structure

ReferenceSystemDeFi.sol
├── ERC20 Implementation
├── Ownable Access Control
├── Crowdsale Functionality
├── Supply Adjustment Engine
├── Reward Distribution System
├── Random Number Generator
└── Betting Mechanism (PoBet)

Key Design Patterns

Factory Pattern: Used for account and transaction management
Observer Pattern: Events for external monitoring
Strategy Pattern: Multiple policy adjustment strategies
Singleton Pattern: Contract state management

Dependencies

@openzeppelin/contracts: Security and standard implementations
@truffle/hdwallet-provider: Wallet management for deployment
bignumber.js: Precise decimal arithmetic
@metamask/detect-provider: Web3 provider detection

🔒 Security Considerations

Implemented Protections

Integer Overflow Protection: SafeMath library usage
Access Control: Owner-only critical functions
Reentrancy Protection: Proper state updates before external calls
Input Validation: Parameter bounds checking
Randomness: Cryptographically secure random number generation

Known Limitations

Oracle Dependency: Price feeds rely on transaction volume
Centralization: Owner has significant control over parameters
Complexity: Advanced economic mechanisms may have edge cases

Security Audit Status

⚠️ This contract has not undergone a professional security audit. Use in production environments at your own risk.

📊 Economic Simulation Results

The included simulation demonstrates:

Supply Elasticity: Token supply adjusts ±15% based on trading volume
Reward Distribution: ~1-2% of transaction volume goes to rewards
Price Stability: Mechanism helps stabilize token value
Network Effects: Increased usage leads to more rewards

Example simulation output:

INITIAL SUPPLY: 4950.00 RSD
FINAL SUPPLY: 5247.83 RSD
GROW RATE: 5.6742 %

🤝 Contributing

Development Setup

Fork the repository
Create a feature branch: git checkout -b feature/amazing-feature
Make your changes and add tests
Ensure all tests pass: truffle test
Commit your changes: git commit -m 'Add amazing feature'
Push to the branch: git push origin feature/amazing-feature
Open a Pull Request

Coding Standards

Follow Solidity style guide
Add comprehensive tests for new features
Document all public functions
Use meaningful variable names
Include gas optimization considerations

📝 License

This project is licensed under the MIT License - see the LICENSE file for details.

🔗 Links

Repository: https://github.com/apolosan/rsd
Documentation: This README
Issues: https://github.com/apolosan/rsd/issues

📞 Contact

Author: Apolo San
Email: [Contact via GitHub]
GitHub: @apolosan

📈 Roadmap

Current Version (1.0.0)

✅ Core ERC20 functionality
✅ Dynamic supply adjustment
✅ Crowdsale mechanism
✅ Reward system
✅ Comprehensive testing

Planned Features

🔄 Oracle integration for external price feeds
🔄 Governance token mechanics
🔄 Liquidity mining programs
🔄 Cross-chain compatibility
🔄 Advanced staking mechanisms

Built with ❤️ for the DeFi community

Name		Name	Last commit message	Last commit date
Latest commit History 4 Commits
contracts		contracts
logo		logo
migrations		migrations
simulation		simulation
test		test
.gitattributes		.gitattributes
.gitignore		.gitignore
CONTRIBUTING.md		CONTRIBUTING.md
DOCS.md		DOCS.md
LICENSE		LICENSE
README.md		README.md
package-lock.json		package-lock.json
package.json		package.json
truffle-config.js		truffle-config.js

License

apolosan/rsd

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