DSC: Decentralized Stablecoin

DSC is an algorithmic, decentralized stablecoin system designed to maintain a 1:1 peg with the US Dollar. It's built on the principles of overcollateralization and exogenous collateral, similar to DAI but without governance, fees, and only backed by WETH and WBTC.

🌟 Key Features

• Decentralized: No central authority controls the system
• Overcollateralized: Always maintains > 100% collateralization
• Algorithmic Stability: Uses smart contracts to maintain the peg
• Exogenous Collateral: Backed by WETH and WBTC
• Liquidation System: Ensures system solvency
• No Governance: Fully autonomous operation
• No Fees: Zero transaction or stability fees

🚀 Quick Start

Prerequisites

• Foundry
• Git

Installation

1. Clone the repository:

   git clone https://github.com/zeroaddresss/dsc-stablecoin.git
   cd dsc-stablecoin
   

2. Install dependencies:

   forge install
   

3. Compile the contracts:

   forge build
   

4. Run tests:

   forge test
   

📘 Detailed Documentation

Core Contracts

1. DecentralizedStableCoin.sol: The ERC20 token implementation of DSC.
2. DSCEngine.sol: The core logic for minting, burning, depositing, and redeeming DSC.
3. OracleLib.sol: A library for interacting with Chainlink price feeds and checking for stale data.

Key Functions

• depositCollateralAndMintDSC: Deposit collateral and mint DSC in one transaction
• redeemCollateralForDSC: Burn DSC and redeem collateral in one transaction
• liquidate: Liquidate undercollateralized positions

System Parameters

• Liquidation Threshold: 50% (200% overcollateralized)
• Liquidation Bonus: 10%
• Minimum Health Factor: 1e18 (1 in standard units)

💡 Examples and Use Cases

1. Minting DSC:

   // Deposit 1 WETH as collateral
   IERC20(WETH).approve(address(dscEngine), 1e18);
   dscEngine.depositCollateralAndMintDSC(WETH, 1e18, 100e18);

2. Redeeming Collateral:

   dscEngine.redeemCollateralForDSC(WETH, 0.5e18, 50e18);

3. Liquidating a Position:

   dscEngine.liquidate(WETH, userAddress, 100e18);

📁 Project Structure

dsc-stablecoin/
├── src/
│   ├── DecentralizedStableCoin.sol
│   ├── DSCEngine.sol
│   └── libraries/
│       └── OracleLib.sol
├── script/
│   ├── DeployDSC.s.sol
│   └── HelperConfig.s.sol
└── test/
    └── mocks/
        └── MockV3Aggregator.sol

🛠 Dependencies

• OpenZeppelin Contracts
• Chainlink Contracts

🧪 Testing

Run the test suite using Foundry:

forge test

For more verbose output:

forge test -vvvv

🚢 Deployment

To deploy the DSC system:

1. Set up your .env file with the required environment variables (e.g., PRIVATE_KEY, ETHERSCAN_API_KEY)
2. Run the deployment script:

   forge script script/DeployDSC.s.sol:DeployDSC --rpc-url $RPC_URL --broadcast --verify -vvvv
   

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⚠️ Disclaimer: This project is for educational purposes only. Do not use in production without proper audits and risk assessment.