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eSILVST - Silver-Backed Token System

eSILVST is a silver-backed token system where 1 token represents 1 troy ounce of physical silver. The project implements a robust trading system allowing users to buy and sell tokens using ETH at current market rates.

Deployed Contracts

The contracts have been successfully deployed and verified on Sepolia testnet. The specific contract addresses are not included here as they may change in future deployments.

Both contracts are verified on Etherscan and can be interacted with directly through the Etherscan interface once deployed.

Components

SilverBackToken Contract

A ERC20-compliant token contract with the following features:

• 1:1 backing of tokens with physical silver reserves
• Owner-controlled minting and burning of tokens
• Ability to update physical silver reserves
• Pause functionality for emergency situations

SilverTrading Contract

Handles the buying and selling of tokens with ETH:

• Price feeds for silver and ETH (initialized at $29.50/oz for silver, $3,250 for ETH)
• Trading functionality to buy tokens with ETH and sell tokens for ETH
• Automatic price conversion calculations
• Pre-funded with tokens and ETH to enable immediate trading

Getting Started

Prerequisites

• Foundry installed (https://book.getfoundry.sh/)

Build

$ forge build

Test

$ forge test

Deploy to Sepolia

Set up environment variables in a .env file:

PRIVATE_KEY=your_private_key
SEPOLIA_RPC_URL=https://eth-sepolia.g.alchemy.com/v2/your_api_key
ETHERSCAN_API_KEY=your_etherscan_api_key

Deploy the contracts:

# Source environment variables
$ source .env

# Deploy SilverBackToken
$ forge create --rpc-url $SEPOLIA_RPC_URL --private-key $PRIVATE_KEY --broadcast src/SilverBackToken.sol:SilverBackToken

# Set initial silver reserve (1000 troy ounces)
$ cast send --rpc-url $SEPOLIA_RPC_URL --private-key $PRIVATE_KEY <TOKEN_ADDRESS> "updateSilverReserve(uint256)" 1000

# Deploy SilverTrading (with token address as constructor parameter)
$ forge create --rpc-url $SEPOLIA_RPC_URL --private-key $PRIVATE_KEY --broadcast src/SilverTrading.sol:SilverTrading --constructor-args <TOKEN_ADDRESS>

# Mint initial tokens to the trading contract (500 tokens)
$ cast send --rpc-url $SEPOLIA_RPC_URL --private-key $PRIVATE_KEY <TOKEN_ADDRESS> "mint(address,uint256)" <TRADING_ADDRESS> 500000000000000000000

# Send ETH to the trading contract for liquidity
$ cast send --rpc-url $SEPOLIA_RPC_URL --private-key $PRIVATE_KEY <TRADING_ADDRESS> --value 0.01ether

# Update prices (optional)
$ cast send --rpc-url $SEPOLIA_RPC_URL --private-key $PRIVATE_KEY <TRADING_ADDRESS> "updatePrices(uint256,uint256)" 2950000000 325000000000

Automated Price Updates

The project includes an automated price update script that fetches current silver and ETH prices from external APIs and updates the Trading Contract accordingly.

To set up the automated price updates:

1. Configure your environment variables:

   PRIVATE_KEY=your_private_key
   SEPOLIA_RPC_URL=https://eth-sepolia.g.alchemy.com/v2/your_api_key
   MAINNET_RPC_URL=https://eth-mainnet.g.alchemy.com/v2/your_api_key
   METALS_API_KEY=your_metals_api_key
   TOKEN_ADDRESS=your_testnet_token_address
   TRADING_ADDRESS=your_testnet_trading_address
   MAINNET_TOKEN_ADDRESS=your_mainnet_token_address
   MAINNET_TRADING_ADDRESS=your_mainnet_trading_address
   

2. Run the update script:

   For testnet (default):

   $ ./update_prices.sh

   For mainnet:

   $ ./update_prices.sh mainnet

3. Schedule regular updates:

   Set up a cron job to run the script periodically:

   # Run price updates daily at 1:00 AM
   0 1 * * * cd /path/to/project && ./update_prices.sh
   
   # For mainnet (when ready)
   # 0 1 * * * cd /path/to/project && ./update_prices.sh mainnet
   

The script fetches:

• Silver prices from Metals Dev API
• ETH prices from Alchemy API
• Converts both to the required 8-decimal format
• Updates the contract with a single transaction

Estimated gas costs per update: ~36,000 gas (approximately $0.75-$3.00 depending on network conditions).

Verify Contracts on Etherscan

# Verify SilverBackToken
$ forge verify-contract --chain sepolia --watch <TOKEN_ADDRESS> src/SilverBackToken.sol:SilverBackToken --etherscan-api-key $ETHERSCAN_API_KEY

# Verify SilverTrading
$ forge verify-contract --chain sepolia --watch <TRADING_ADDRESS> src/SilverTrading.sol:SilverTrading --constructor-args $(cast abi-encode "constructor(address)" <TOKEN_ADDRESS>) --etherscan-api-key $ETHERSCAN_API_KEY

Interacting with the Contracts

Buy tokens with ETH:

$ cast send --rpc-url $SEPOLIA_RPC_URL --private-key $PRIVATE_KEY <TRADING_ADDRESS> "buyTokensWithETH()" --value 0.001ether

Sell tokens for ETH:

# First approve the trading contract to spend your tokens
$ cast send --rpc-url $SEPOLIA_RPC_URL --private-key $PRIVATE_KEY <TOKEN_ADDRESS> "approve(address,uint256)" <TRADING_ADDRESS> <AMOUNT>

# Then sell tokens
$ cast send --rpc-url $SEPOLIA_RPC_URL --private-key $PRIVATE_KEY <TRADING_ADDRESS> "sellTokensForETH(uint256)" <AMOUNT>

Key Features

• Silver Backing: Every token is backed by 1 troy ounce of silver.
• Owner Control: Only the owner can mint tokens and update the silver reserve.
• Reserve Ratio: The system maintains a proper reserve ratio at all times.
• Market Price Trading: Buy and sell tokens at current market prices.

Project Structure

• src/: Smart contracts
  • SilverBackToken.sol: Main token contract
  • SilverTrading.sol: Trading contract for direct ETH/token swaps
• test/: Test files for the contracts
• script/: Deployment and demo scripts

Overview

eSILVST tokens are 1:1 backed by physical silver reserves, with each token representing one troy ounce of silver. The system is designed to maintain full collateralization while providing seamless trading capabilities through smart contracts.

Technical Stack

• Smart Contracts: Solidity 0.8.20
• Development Framework: Foundry
• Testing: Forge
• Dependencies:
  • OpenZeppelin Contracts

License

MIT

Contributing

Contributions are welcome! Please feel free to submit a Pull Request.