Smart Contracts

StrongHodl Smart Contracts

The StrongHodl Protocol is based on a secure and modular set of smart contracts deployed on Ethereum and Solana. These contracts govern the minting, management, and bridging of synthetic BTC (shBTC) and ensure a seamless and decentralized experience for users. StrongHodl’s smart contracts are designed for security, transparency, and efficiency, providing a foundation for DeFi integrations and a robust staking functionality.

Overview of Key Smart Contracts

1. Minting Contract

   • Purpose: This contract allows users to mint shBTC by locking BTC as collateral, following a 1:1 backing model. It also facilitates the redemption of shBTC, enabling users to convert synthetic assets back into BTC.

   • Functions:

     • mintShBTC: Allows users to mint shBTC by depositing BTC collateral.

     • redeemShBTC: Facilitates the redemption of shBTC for BTC at a 1:1 ratio.

   • Security: Audited to ensure the security of the locked collateral and prevent unauthorized minting or redemption.

2. Cross-Chain Bridge Contract

   • Purpose: This contract enables users to seamlessly transfer shBTC between Ethereum and Solana. It maintains liquidity and ensures that assets retain their value as they move across chains.

   • Functions:

     • transferToChain: Allows users to move shBTC from Ethereum to Solana and vice versa.

     • receiveFromChain: Receives shBTC from another chain and credits it to the user.

   • Security: Utilizes secure bridge protocols and cryptographic verification to maintain asset integrity across chains.

3. Role Management Contract

   • Purpose: Manages user roles and access within the protocol, assigning different permissions based on staking activity and levels. Different Roles unlock privileges and rewards.

   • Functions:

     • assignRole: Assigns a role to a user based on their staking level.

     • upgradeRole: Allows users to upgrade to higher roles by increasing their staking level or activity.

   • Security: Ensures role assignments are transparent, with on-chain records of user activity and contributions.

4. Reward Distribution Contract

   • Purpose: Distributes rewards, incentives, and other benefits to shBTC holders based on their role and contributions. This contract manages the yield earned through Babylon Protocol and StrongHodl DeFi integrations.

   • Functions:

     • calculateRewards: Calculates rewards based on user roles, activity, and protocol earnings.

     • distributeRewards: Distributes accumulated rewards to eligible users.

   • Security: Operates transparently, with public records of reward calculations and distributions.

5. Governance Contract

   • Purpose: Governs protocol decisions through StrongHodl DAO, allowing token holders to vote on key proposals, including fee structures, partnerships, and protocol upgrades.

   • Functions:

     • createProposal: Allows token holders to propose changes to the protocol.

     • voteOnProposal: Allows token holders to vote on active proposals.

     • implementProposal: Executes approved proposals within the protocol.

   • Security: Fully decentralized, allowing the community to safely participate in protocol governance.

6. Fee Switch Contract (Future Implementation)

   • Purpose: Subject to regulatory approval, this contract will enable a fee-sharing mechanism where a portion of protocol fees is distributed to StrongHodl governance token holders.

   • Functions:

     • activateFeeSwitch: Activates the fee-sharing mechanism upon DAO approval.

     • distributeFees: Allocates fees to eligible token holders based on their holdings.

   • Security: Will be implemented with a multi-signature approval process to ensure compliance and security.

Security and Audits All of StrongHodl’s smart contracts undergo thorough audits by top-tier security firms to ensure the highest standards of security and reliability. The protocol also incorporates a Security Control Center for real-time monitoring and response, protecting assets from potential threats and vulnerabilities.

Smart Contract Addresses The smart contract addresses for Ethereum and Solana will be published here after implementation. Users can verify all contract addresses to ensure interaction only with official and secure contracts.

• Ethereum Contract Address: TBD

• Solana Contract Address: TBD

How to Interact with StrongHodl Smart Contracts StrongHodl’s smart contracts are open-source, allowing users, developers, and third-party protocols to interact and integrate seamlessly. The contracts support integration through APIs and SDKs, enabling DeFi applications to leverage shBTC for lending, staking, and liquidity provision.

The StrongHodl smart contract suite provides the backbone for a secure, flexible, and community-driven protocol, setting the stage for a new era of Bitcoin utility in DeFi.