This protocol is a custom algorithmic stablecoin system, where the PUSD token is pegged to the USD price at a 1:1 ratio (1 PUSD = 1 $). The PUSD token will be backed by two collateral tokens (ERC20): WETH and WBTC. Users can deposit either or both of these tokens and mint PUSD tokens, they can hold the PUSD tokens as long as their collateralization remains above the liquidation threshold (collateral value must be greater than double the minted PUSD value, indicating a 200% collateralization ratio).

Additionally, the protocol will support flashloan operations, this will enable users to borrow either collateral (WETH or WBTC) tokens or PUSD tokens, subject to a small fee paid to the protocol.

The project is built with foundry and uses the Openzeppelin and Chainlink as externals libraries.

• PUSD Minting/Burning: Users are required to deposit collateral assets (WETH or WBTC) into the controller contract to mint PUSD tokens. At any moment users will be able to burn the minted PUSD tokens and withdraw their collateral.

• Overcollateralization: The protocol maintains a 200% collateralization ratio, ensuring that a user's collateral value always exceeds their minted PUSD tokens. If a user falls below this threshold, their collateral will be liquidated to uphold protocol solvency and guarantee the PUSD's peg to USD.

• Flash Minting: The controller will support flash minting of PUSD tokens, allowing users to mint PUSD tokens without the need for upfront collateral deposit.

• Flash Loans: Users have the option to perform flashloans on collateral tokens (WETH or WBTC) held in the controller.

• Price Oracle: Asset prices in USD are determined using the Chainlink oracle price feeds, ensuring reliable and up-to-date pricing information.

• Protocol Fee: The protocol only implements fees on flashloan operations, capped at a maximum of 1% of the amount borrowed.

• Trusted Roles: The protocol controller contract will be owned by the admin, who will only be allowed to perform the following operations: set a new flashloan fee, set a new fee recipient, pause or unpause flashloan operations. This admin will not have any access/control to the users colateral funds or to the PUSD token minting/burning mechanism.

$ git clone https://github.com/kaymen99/PureUSD-stablecoin
$ cd PureUSD-stablecoin
$ forge build

$ forge script script/DeployPUSD.s.sol:DeployPUSD --rpc-url <your_rpc_url> --private-key <your_private_key>

$ forge test

$ forge coverage

I welcome any contributions, feel free to open issues, submit pull requests, or if you want to collaborate or have any questions, reach out to me: [email protected]

Distributed under the MIT License. See LICENSE.txt for more information.