StellHydra

Problem Statement

🚀 Project Overview: StellHydra StellHydra is a functional cross-chain bridge designed to connect the Stellar and Ethereum networks, enabling seamless asset transfers and decentralized swaps. Built with practical use cases in mind, StellHydra integrates 1inch Fusion+ to facilitate efficient, gasless cross-chain swaps via a decentralized execution layer.The goal of StellHydra is to simplify the complexity of cross-chain interactions while giving users full visibility and control over their assets during the transfer process. By combining Stellar's low-fee, high-speed payments with Ethereum's deep DeFi liquidity, we enable a more efficient and accessible cross-chain experience.🔧 Key Features Cross-chain swaps via 1inch Fusion+ Leverages 1inch Fusion's decentralized RFQ system to execute gasless swaps between Ethereum-based assets with optimized routing.Stellar asset support Allows users to bridge native Stellar assets to Ethereum-compatible tokens, enabling use in DeFi protocols.Bridge selection with chain previews Users can view available bridge routes and preview the destination network before initiating a transfer.Transaction trail visualization Each swap and transfer is visualized with step-by-step status updates for full transparency.Swap history and analytics Integrated logging of user swaps with timestamps, asset pairs, and execution details for better tracking and auditing.

Solution

Our system follows a layered architecture that combines the strengths of multiple blockchain technologies:Frontend Layer: Modern React application with TypeScript for type safetyOrchestration Layer: StellHydra Fusion Orchestrator that intelligently routes transactionsAPI Integration Layer: Direct integration with 1inch Fusion API and Stellar networkSmart Contract Layer: Soroban contracts on Stellar and Solidity contracts on EthereumBlockchain Layer: Cross-chain atomic swaps between Stellar and Ethereum networksCore Components1.Smart Contract InfrastructureStellar Contracts: Built with Soroban (Stellar's smart contract platform)Bridge contract for managing cross-chain operationsHTLC (Hash Time Locked Contract) for secure atomic swapsRouter contract for DEX aggregation and route optimizationPrice oracle for decentralized price feedsLiquidity pool for AMM-style liquidity provisionEthereum Contracts: Solidity contracts for Ethereum-side operationsHTLC implementation for secure cross-chain transfersBridge contract for Ethereum-side operations2.1inch Fusion IntegrationFusion API Client: Direct integration with 1inch Fusion APIRoute Optimization: Automatic selection of optimal DEX routesGasless Swaps: MEV-protected, gasless transaction executionCross-Chain Support: Hybrid approach combining Fusion with StellHydra bridge3.Frontend ApplicationReact 18 + TypeScript: Modern, type-safe frontendTailwind CSS + Shadcn/UI: Beautiful, responsive designTanStack Query: Efficient state management and cachingDual Wallet Support: Freighter (Stellar) + MetaMask (Ethereum)4.Backend ServicesExpress.js API: RESTful API for bridge operationsDrizzle ORM: Database management with PostgreSQLReal-time Monitoring: Transaction status trackingRelayer System: Automated cross-chain transaction processing🎯 How We Used the Sponsors' Technologies1.1inch Fusion IntegrationWhat We Built:Direct API Integration: Implemented full 1inch Fusion API clientRoute Optimization: Automatic DEX route discovery and optimizationGasless Transactions: MEV-protected, gasless swap executionCross-Chain Support: Hybrid approach for Stellar ↔ Ethereum swapsKey Features:Fusion Quote Retrieval: Real-time price quotes from 1inch aggregatorOrder Management: Complete order lifecycle managementSecret Management: HTLC secret generation and submissionFallback System: Automatic fallback to StellHydra when Fusion unavailableTechnical Implementation:We integrated the 1inch Fusion API to provide users with optimal DEX routing. When users want to swap tokens, our system first checks if 1inch Fusion can handle the transaction. For same-chain swaps (like ETH to USDC on Ethereum), we use Fusion's gasless transaction capabilities. For cross-chain swaps (Stellar to Ethereum), we use a hybrid approach that combines Fusion's route optimization with our StellHydra bridge.2.Stellar Network IntegrationWhat We Built:Soroban Smart Contracts: Full smart contract suite for cross-chain operationsHTLC Implementation: Secure atomic swap mechanismBridge Infrastructure: Complete cross-chain bridge systemDEX Aggregation: Multi-DEX price comparison and routingKey Features:Fast Settlement: 3-5 second transaction finalityLow Fees: Sub-penny transaction costsAtomic Swaps: Secure cross-chain token transfersMulti-Currency Support: Native support for various assetsTechnical Implementation:We leveraged Stellar's Soroban smart contract platform to build a complete cross-chain bridge system. Our HTLC (Hash Time Locked Contract) implementation ensures secure atomic swaps between Stellar and Ethereum. When a user initiates a cross-chain transfer, tokens are locked on the source chain with a secret hash. Once the recipient provides the secret on the destination chain, the tokens are unlocked, ensuring trustless cross-chain transfers.3.Cross-Chain Bridge ArchitectureBidirectional Support:Stellar → Ethereum: Lock tokens on Stellar, unlock on EthereumEthereum → Stellar: Lock tokens on Ethereum, unlock on StellarReal-time Monitoring: Transaction status tracking across chainsAutomatic Fallback: Seamless routing between Fusion and StellHydraSecurity Features:Hash Time Locked Contracts: Secure atomic swap mechanismMulti-Signature Support: Enhanced security for large transfersTimeout Protection: Automatic refunds after timeoutsAudit Trail: Complete transaction history and proof🚀 Key Innovations1.Hybrid Routing SystemIntelligent Route Selection: Automatically chooses between 1inch Fusion and StellHydra bridgeCost Optimization: Compares gas costs, fees, and execution timeFallback Mechanism: Seamless fallback when Fusion unavailableReal-time Updates: Live status updates across both systems2.Enhanced User ExperienceSingle Interface: Unified UI for both Stellar and Ethereum operationsDual Wallet Support: Connect both Freighter and MetaMask simultaneouslyReal-time Balances: Live balance updates across networksTransaction History: Complete cross-chain transaction tracking3.Advanced DEX IntegrationMulti-DEX Aggregation: Price comparison across multiple DEXsOptimal Route Selection: Automatic selection of best trading routeSlippage Protection: Configurable slippage toleranceMEV Protection: Protection against sandwich attacks via Fusion🔧 Technical Challenges Solved1.Cross-Chain CompatibilityChallenge: Different consensus mechanisms between Stellar and EthereumSolution: Implemented HTLC-based atomic swaps with secret sharingResult: Secure, trustless cross-chain transfers2.1inch Fusion IntegrationChallenge: Fusion API limitations for cross-chain swapsSolution: Hybrid approach combining Fusion for same-chain and StellHydra for cross-chainResult: Optimal routing for all scenarios3.Real-time SynchronizationChallenge: Keeping transaction status synchronized across chainsSolution: Implemented event-driven architecture with webhook supportResult: Real-time status updates and notifications4.Gas OptimizationChallenge: High gas costs on Ethereum networkSolution: Leveraged 1inch Fusion for gasless transactions where possibleResult: Reduced transaction costs and improved user experience📊 Performance MetricsTransaction Speed:Stellar Side: 3-5 seconds finalityEthereum Side: 12-15 seconds (with Fusion optimization)Cross-Chain Bridge: 30-60 seconds totalCost Efficiency:Stellar Fees: < $0.01 per transactionEthereum Fees: Optimized via Fusion (gasless when possible)Bridge Fees: 0.1% of transfer amountSecurity:HTLC Protection: 100% secure atomic swapsTimeout Protection: Automatic refunds after 24 hoursMulti-Signature: Enhanced security for large transfers🎯 Hackathon Achievements1. Complete Cross-Chain Solution✅ Bidirectional Stellar ↔ Ethereum bridge✅ 1inch Fusion integration for optimal routing✅ Real-time transaction monitoring✅ Complete frontend and backend implementation2. Advanced Features✅ HTLC-based atomic swaps✅ Multi-DEX price aggregation✅ Gasless transaction support✅ Automatic fallback mechanisms3. Production Ready✅ Comprehensive testing suite✅ Security audit considerations✅ Scalable architecture✅ Documentation and deployment guides🔮 Future Enhancements1. Additional Chain SupportExpand to other EVM and non-EVM chainsImplement Cosmos, Polkadot, and other networksAdd support for Layer 2 solutions2. Advanced FeaturesPartial fill support for large ordersAdvanced order types (limit orders, stop-loss)Institutional features (whitelisting, KYC integration)3. Ecosystem IntegrationDeFi protocol integrationsYield farming opportunitiesLiquidity mining programs🏆 ConclusionStellHydra + 1inch Fusionrepresents a significant advancement in cross-chain bridge technology, combining the speed and efficiency of Stellar with the robust DeFi ecosystem of Ethereum, enhanced by 1inch's powerful DEX aggregation capabilities. Our solution provides a complete, production-ready cross-chain bridge that addresses real-world needs while maintaining security and user experience standards.The integration of 1inch Fusion brings additional value through:Gasless transactionsfor improved user experienceMEV protectionfor secure tradingOptimal route selectionfor best executionSeamless fallbackto StellHydra bridge when neededThis project demonstrates the power of combining multiple blockchain technologies to create innovative solutions that bridge different ecosystems and provide users with the best possible experience across multiple networks.