Ethygen

Problem Statement

Ethygen is a permissionless, gasless DeFi platform that integrates unified cross-chain collateral management, yield-bearing staking, and perpetual trading into a seamless user experience. Its goal is to allow users to leverage their assets across multiple EVM-compatible blockchains without worrying about complex bridging, high gas fees, or repeated transaction approvals. Core Features & Flow:Unified Collateral: Users deposit assets from multiple EVM chains. Avail Nexus aggregates these balances and automatically bridges them to USDC, providing a single, unified collateral pool.Yield-Bearing Vault: Deposited USDC is converted into USDe, a yield-bearing token. A portion of USDe is staked in DeFi protocols to generate yield, while a buffer remains in the vault to secure trading positions. This ensures that even while users are trading, their collateral can continue earning passive yield.Margin Token for Perpetual Trading: Users can mint yUSDe, a margin token, at a 0.8:1 ratio backed by the vault. This allows them to trade perpetual positions while the vault retains a 20% buffer to absorb losses and maintain yield generation.Perpetual Trading Engine: Pyth Oracle provides real-time price feeds, enabling accurate mark-to-market calculations for trading. Envío indexes all trading events, deposits, and withdrawals, offering transparency and clean analytics for users and front-end dashboards.Gasless & Signatureless UX: Privy Smart Wallets abstract away gas fees and manual signatures. Users can deposit, stake, mint, and trade seamlessly, providing a smooth, Web3-native experience without onboarding friction.Risk Management & Safety:Vault balance is always ≥ minted yUSDe to prevent under-collateralization.Only buffered or idle USDe is staked for yield, reducing the risk of liquidations affecting earnings.Ethygen combines the best of DeFi primitives , permissionless access, gasless UX, cross-chain collateral aggregation, yield generation, and perpetual trading — into a single, user-friendly platform. It empowers traders and investors to earn yield while actively trading, without sacrificing security or usability.

Solution

Ethygen is built using modern DeFi primitives and partner technologies to provide a seamless, gasless, permissionless platform for trading and yield.Core Stack & ImplementationSmart Contracts:Vault manages USDC → USDe conversion, staking buffer, and margin token (yUSDe) minting at 0.8:1 ratio.Perp DEX contracts handle trades using yUSDe and reference real-time prices.FrontendBuilt with React + Tailwind for a smooth, real-time dashboard.Displays unified balances, staked yield, and perpetual trading PnL.Partner Technologies & Their BenefitsAvail Nexus: Aggregates user balances across multiple EVM chains and simulates unified USDC collateral.Pyth Network: Provides real-time price feeds for accurate mark-to-market calculations and risk management.Envío: Indexes deposits, trades, and redemptions to power frontend dashboards and analytics efficiently.Notable / Hacky ImplementationsHybrid system allows users to earn yield on idle collateral while using margin for trading, a setup that isn’t commonly seen in standard DeFi protocols.Simulated unified cross-chain balances make the demo fast and simple without deploying complex bridging logic.Gasless UX with Privy smart wallets is abstracted so users never manually sign or pay gas, even across multiple interactions.