David Protocol

Screenshots

Problem Statement

The David protocol is designed to make small validators competitiveness against large validators by allowing them leverage their deposited ETH. A validator can issue a bond using the deposited ETH as collateral and leverage their deposit amount. The bond has a fixed rate interest and is for anyone to buy, trade for anyone. This will be more favorable for small validators since large validators wouldn't want to take more risk to become larger. In an ideal scenario, small validators will become relatively larger 'leveraged validators' and ultimately make the Ethereum network more decentralized.

Solution

We started with the coinbase onchankit boilerplate which includes Next.js, wagmi, tailwind, and of course the onchain kit. We used V0 from vercel to make the frontend and made vercel to deploy it. The smart contract uses foundry. We used pendle V2 AMM as reference to implement a custom AMM on Uniswap V4 hook.