TL;DR - Alphacado

• The Problem: The Klaytn DeFi ecosystem suffers from high friction—users face complex multi-step processes for basic swaps and deposits, while developers lack unified tools for integration.
• The Solution: We built a modular infrastructure layer featuring "Zap" APIs and Bundlers that enables any-to-any swaps and one-click asset management.
• The Result: A functional Proof-of-Concept that significantly lowers barriers for users and empowers fund managers with advanced automation tools.

Problem Statement

Klaytn Ecosystem Challenges

• Lack of Interoperability between dApps: The current Klaytn DeFi ecosystem grapples with a significant challenge—lack of interoperability. Seamless collaboration and communication between different dApps are hindered, limiting the holistic growth of the ecosystem.
• Builder Support and Tooling for Inter-Ecosystem Development: Klaytn stands out as an attractive ecosystem for developers due to its high performance, low gas fees, and EVM compatibility. However, to broaden its appeal and attract developers from other EVM-compatible blockchains, there is a critical need for enhanced tooling and SDK support. Improving the developer experience and providing robust resources for inter-ecosystem development will foster a more inclusive and vibrant Klaytn ecosystem.

Defi Protocols Challenges

• Friction in User Deposits: The success of DeFi protocols like KlaySwap, Klaystation, Stake.ly, and Klaybank significantly relies on the amount of funds deposited into farms, lending pools or liquid staking. However, these protocols' smart contracts exclusively support deposits in a specific token, introducing friction for users with different tokens who must swap to that specific token before depositing. Users holding LP tokens face additional friction, requiring them to remove their liquidity and swap to the desired token needed.
• Cross-Chain Deposit Hurdles: Users holding tokens from other blockchain networks encounter additional obstacles in accessing yield opportunities or participating in Klaytn DeFi. Currently, on Klaytn, cross-chain deposits are unavailable, compelling users to navigate bridges and purchase KLAY tokens on Klaytn as gas tokens before depositing into a farm or a lending pool.

Defi Users Challenges

• Fragmented Access to Yield Opportunities: DeFi enthusiasts seek diverse yield opportunities, but the fragmented nature of existing platforms and the absence of a unified aggregator make it difficult for users to access and capitalize on the full spectrum of available yield opportunities on Klaytn.
• Complexity of On-Chain Actions: Even when users find suitable yield opportunities on Klaytn, entering those positions involves executing multiple on-chain actions on different DeFi platforms. This process is cumbersome, with high gas fees and long waiting times. It also adds to the complexity, posing a challenge, especially for users new to Defi, making multi-step operations daunting and error-prone.
• Inefficient Asset Management and Strategy Execution Tools: Manual execution of complex strategies across various DeFi protocols proves time-consuming for both fund managers and users. Continuous real-time monitoring and adjustment are required for effective risk mitigation. In addition, the lack of transparency in current DeFi funds leaves users uninformed about fund utilization and associated risks.

Mission and Contributions

Mission

At Alphacado, our mission is centered around propelling the growth of Klaytn DeFi. We are dedicated to enhancing user experience, eliminating friction, streamlining the flow of assets into Klaytn ecosystem, and fostering interoperability between DeFi protocols. Furthermore, we aim to develop robust tooling for developers to build next-generation dApps on Klaytn

Our dApps

• Any-to-any Swap: A One-Click Gateway to Access Klaytn DeFi, enabling users seamlessly enter or exit positions in any of our supported assets, including both liquid (normal tokens) and non-liquid assets (pools, farms, liquid staking positions, or vaults). Users can move their liquidity between any farms or pools in a single step. Cross-chain deposits are also simplified through our Gasless Swap feature, eliminating the need for navigating bridges or purchasing KLAY as a gas token This user-friendly approach ensures both newcomers and experienced users can effortlessly navigate Klaytn DeFi and streamline the flow of assets into the Klaytn ecosystem.
• Vault Management Platform: By connecting and displaying a diverse range of Klaytn DeFi protocols, we've created a platform that enable users to create, manage and optimize yield vaults. This approach promotes cross-dApp interactions and fosters user engagement by allowing them to interact with all DeFi protocols within a single dApp, making it easier to manage different strategies.

Developers Tooling

• One-click Zap API: Enables developers to seamlessly integrate on-click zap function into their protocol, making their pools or farms to accept deposits in any token, from any chain, in a single transaction.
• Protocol Metadata API: Provides essential data about our supported Defi protocols, including token prices, liquidity pool, APYs, account balances, contract address and more. It offers developers an easy way to tap into DeFi possibilities and essential metadata.
• Bundler API: Allows developers to combine several DeFi actions into a single transaction, making interaction with various DeFi protocols simpler and cheaper.

High-level Architecture

Our high-level architecture comprises the following main layers:

• Asset Routers Layer: User inputs traverse a Router to identify the optimal route from their holding asset to the desired asset, determining the appropriate Adapters for the transaction.
• Protocol Layers: This layer includes smart contracts, known as Adapters, which Alphacado employs to interact with various DeFi protocols. The interaction with supported DeFi protocols is orchestrated through routes defined by the Router. One route may involve multiple Adapters.
• Cross-chain Layers: Facilitating cross-chain interactions, this layer incorporates a Bridge Router and various Bridge Relayers. Users can select a bridge or a set of bridges they trust. The bridge router processes user input to determine the most efficient bridging option, optimizing gas fees for users.

The Protocols Layer comprises the following components:

• DEX Token Adapters: Enable normal token swaps in DEXes.
• Aggregator Adapters: Find the best route for token swaps in DEXes.
• DEX LP Adapters: Facilitate entering and exiting LP and Farming Pools.
• Liquid Staking Adapters: Enable users to enter and exit Liquid Staking positions.
• Lending Adapters: Facilitate entering and exiting Lending Pools.
• Vault Adapters: Enable users to enter and exit Defi Vaults.

We enable any protocol/developer to build on top of our architecture and Adapters to easily interact with all supported DeFi protocols, allowing them to innovate new dApps, discover yield opportunities, and customize their yield strategy.

Disclaimer: Proof-of-concept status

For this proof-of-concept version, we've architected a comprehensive framework and established a robust code base with scalability and future enhancements in mind. However, due to the time constraints imposed by the hackathon, complete integration with DeFi protocols to construct fully functional adapters for their testnet versions was not feasible.

As an alternative, we've implemented mock adapters in our Protocol layer, each with clearly defined input and output, to simulate and showcase the intended functionality of our dApp. These mock adapters offer a thorough preview of the seamless interactions we aim to achieve upon complete integration. It's important to note that these mock adapters are designed for demonstrative purposes and may not reflect the full range of features or intricacies of the actual protocol interactions. While every effort has been made to ensure accuracy, the mock implementation is a proof of concept version and not a fully operational version of the intended product.