FluxTranche - AI-Powered DeFi Yield Vault

⚠️ WARNING: Experimental Prototype - Not Financial Advice
This is a hackathon project for ETHIstanbul 2025. Do not use in production or with real funds.

Overview

FluxTranche is an AI-powered DeFi yield vault protocol with a tranche system (Senior/Junior/Mezzanine) built for the ETHIstanbul 2025 hackathon. It leverages RISE Chain's high throughput and low latency capabilities to create a sophisticated structured product for DeFi users.

Key Features

• Tranche System: Risk-tiered investment options (Senior/Junior tranches)
• AI Risk Engine: Dynamic risk management with on-chain parameter updates
• ERC-4626 Compliant: Fully composable vault standard
• Waterfall Distribution: Senior gets target coupon first, Junior absorbs losses
• RISE Chain Optimized: Gas sponsorship, passkey support, session keys
• Mobile-First UX: One-click deposits with account abstraction

Quick Start

Prerequisites

• Node.js 20+
• Foundry
• Git

Installation

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

# Install dependencies
npm install
cd frontend && npm install && cd ..
cd backend/ai-risk-engine && npm install && cd ../..
cd backend/keeper && npm install && cd ../..

# Setup environment variables
cp .env.example .env
# Edit .env with your configuration

Environment Variables

Create .env file:

# RISE Testnet
RISE_RPC_URL=https://testnet-rpc.risechain.io
RISE_CHAIN_ID=1380996178
RISE_EXPLORER=https://testnet.explorer.risechain.io

# Deploy Keys (TESTNET ONLY!)
DEPLOYER_PRIVATE_KEY=0xac0974bec39a17e36ba4a6b4d238ff944bacb478cbed5efcae784d7bf4f2ff80
AI_SIGNER_PRIVATE_KEY=0x59c6995e998f97a5a0044966f0945389dc9e86dae88c7a8412f4603b6b78690d

# Contract Addresses (after deployment)
TRANCHE_VAULT_ADDRESS=
RISK_PARAMS_ADDRESS=
ORACLE_MANAGER_ADDRESS=

# Frontend
NEXT_PUBLIC_WALLETCONNECT_PROJECT_ID=your_project_id
NEXT_PUBLIC_ALCHEMY_KEY=optional_for_fallback

Development

# Run all services
npm run dev

# Or run individually:
npm run dev:contracts  # Foundry watch mode
npm run dev:frontend   # Next.js dev server
npm run dev:ai        # AI Risk Engine
npm run dev:keeper    # Keeper service

Testing

# Run all tests
npm test

# Individual test suites
npm run test:contracts  # Foundry tests
npm run test:frontend   # Frontend tests
npm run test:backend    # Backend services tests

Deployment

# Deploy to RISE testnet
npm run deploy

# Verify contracts
forge verify-contract <address> <contract> --chain-id 1380996178

Architecture

See ARCHITECTURE.md for detailed system design.

Contract Structure

• TrancheVault.sol - Main ERC-4626 vault with epoch management
• TrancheToken.sol - ERC-20 tokens for Senior/Junior tranches
• RiskParams.sol - AI-signed parameter management with timelock
• OracleManager.sol - TWAP and price feed aggregation
• StrategyRegistry.sol - Strategy whitelist and limits
• PauseGuardian.sol - Emergency controls

Services

• AI Risk Engine - Generates risk parameters and strategy weights
• Keeper - Manages epoch settlements and parameter updates
• Frontend - Next.js app with RISE Wallet SDK integration

Hackathon Tracks

This project is designed for multiple ETHIstanbul 2025 tracks:

• ✅ Blockchain + AI: AI risk engine with on-chain updates
• ✅ Real Use Cases: Risk-appropriate savings product
• ✅ 10 Years of Ethereum: ERC standards & composability
• ✅ RISE DeFi 3.0: High throughput structured products
• ✅ RISE Open Track: Mobile-first AA experience
• ✅ Community Favorite: Live NAV/epoch UI
• 🔄 Yellow Network: Nitrolite state channels (P1)

Security

See RISK.md for security considerations and risk management.

Key Security Features

• Reentrancy guards on all critical functions
• Oracle deviation thresholds
• Parameter timelock (24h default)
• Emergency pause mechanism
• Withdrawal queue for large exits
• Same-block manipulation prevention

Demo

Local Testing

# Start local node
anvil --fork-url $RISE_RPC_URL

# Deploy contracts
forge script script/DeployLocal.s.sol --rpc-url http://localhost:8545 --broadcast

# Seed with test data
forge script script/SeedMock.s.sol --rpc-url http://localhost:8545 --broadcast

RISE Testnet Demo

1. Get test tokens from faucet: https://testnet.faucet.risechain.io
2. Visit deployed app: [URL after deployment]
3. Connect wallet with passkey
4. Choose tranche (Senior/Junior)
5. Deposit USDC
6. Monitor epoch progress and AI decisions

Contributing

This is a hackathon project. Post-hackathon contributions welcome!

Team

• FluxTranche Team - ETHIstanbul 2025

License

MIT - See LICENSE

Disclaimer

NOT FINANCIAL ADVICE. EXPERIMENTAL PROTOTYPE.

This software is provided "as is", without warranty of any kind. Use at your own risk. Never use with real funds outside of testnet environments.

Links

• Pitch Deck
• Architecture
• Risk Analysis
• RISE Chain Docs
• Demo Video