Byzantic aims to compute cross-protocol reputation for DeFi users. By performing desired actions in one protocol, the user can reduce their collateral ratio across all protocols that integrate with Byzantic.
Protocols that integrate with Byzantic need to change the portion of their code that retrieves collateralization ratios. Besides using action specific collateralization ratios, protocols should query Byzantic to learn if the user deserves a reduction in collateral. For instance, if borrowing an asset requires 150% overcollateralization and the borrowing user has a good reputation across DeFi, Byzantic may deem the user worthy of only paying 90% of the collateral (90% x 150% = 135% overcollateralization).
For every protocol that integrates with this solution, Byzantic will keep a Layered Behaviour-Curated Registry (LBCR) of users, which assigns agents (users) into layers, higher layers corresponding to lower collateral. Byzantic is a round-based protocol. For every LBCR, at the end of a round users are either promoted to a higher layer, demoted, or kept in the same layer, based on the actions they have taken during the round and how much they were in accordance with the interests of protocols. When Byzantic is queried about the reputation of a user, it aggregates information from every LBCR and produces a general score (this is done in the Web of Trust contract). Not all DeFi protocols are identical and good reputation in one protocol may not directly translate into good reputation in another protocol (the intuition is that if a person is a good scientist, we may not assume that consequently they are a good sports player, but it is more reasonable to assume that they are a good teacher). Protocol governance or admins will decide, for every other protocol that integrates with Byzantic, on a value between 0 and 1 that encodes how much of the reputation in the other protocols applies to their protocol.
- Deploy a protocol proxy contract. This contract is used to properly track and update agents' reputation score based on their transactions. See
contracts/SimpleLendingProxy.sol, which is a proxy for the example protocolcontracts/SimpleLending/SimpleLending.sol. - Once the protocol proxy is deployed, call the WebOfTrust contract using the method:
addProtocolIntegration(address protocolAddress, address protocolProxyAddress). An example can be found in the globalbefore()function intest/byzantic.ts, where the dummy SimpleLending protocol is deployed, along with SimpleLendingTwo, a clone protocol. - WebOfTrust will automatically deploy a Layered Behaviour-Curated Registry (LBCR) contract for your protocol integration. Retrieve it using the function
getProtocolLBCR(address protocolAddress)and then initialize the LBCR using parameters you deem appropriate. - LBCR parameters define the number of layers, the collateral discount offered by each layer, the score needed to be in a certain layer, and the compatibility scores with all the other protocols in Byzantic. The compatibility scores are the weightings used to lower their collateral in your protocol by using reputation in other protocols. The weighting of your own protocol is 100. For example, you can allow users to use their reputation from two other protocols, by setting the compatibility scores of those protocols to 2 and 3 respectively. The aggregated reputation will use the LBCR layer factor in your protocol with a weighting of
100 / (100 + 2 + 3), the LBCR layer factor in the second protocol with a weighting of2 / (100 + 2 + 3)and the LBCR layer factor in the third protocol with a weighting of3 / (100 + 2 + 3). - See the function
initializeLBCR(LBCRAddress: string, layers: number[], layerFactors: number[], layerLowerBounds: number[], layerUpperBounds: number[])andinitializeSimpleLendingLBCR(webOfTrust: typeof WebOfTrust)intest/byzantic.tsfor an example LBCR initialization.
For protocols that integrate with Byzantic, usage is defined by the IWebOfTrust interface. Most likely, the most common functions your protocol will call are getAggregateAgentFactorForProtocol(address agent, address protocol) and getAgentFactorDecimals(). You can find example usages of these functions in getCollateralInUseInETH(address account) and getBorrowableAmountInETH(address account) in contracts/SimpleLending/SimpleLending.sol.
For users of a protocol who want to register with Byzantic, usage is defined by the IUserProxyFactory and IUserProxyinterfaces. First, use the registerAgent function to register in the UserProxyFactory, which will deploy a UserProxy contract for you and will register you in every LBCR. Then, call getUserProxyAddress(address userAddress) in UserProxyFactory to get the address of your UserProxy. To deposit and withdraw funds and your user proxy, use the depositFunds(address _reserve, uint256 _amount) and withdrawFunds(address _reserve, uint256 _amount) functions.
For further code examples, check the tests in test/byzantic.ts, which can be run by following the instructions in the Contributing section.
First, clone this repository to your machine and then install the prerequisites.
To install dependencies, run:
npm install --save-devThe test showcases how Byzantic can be used to aggregate reputation from two identical "simple lending protocols" (SimpleLending and SimpleLendingTwo). For testing purposes, a basic ERC-20 token was used to mock Dai. Exchange price between ETH and DaiMock is based on the liquidity available in the lending protocols.
There is no need to connect to an Ethereum node, as Buidler runs the tests in its custom Buidler EVM, which facilitates debugging.
Run:
npx buidler testYou can find the static HTML documentation page here, generated automatically using solidity-docgen and Antora.
- Preserve user privacy by using AZTEC to obfuscate transactions.
- Perform stress testing of the protocol using statistical methods, to prove its reliability in the face of price shocks (similar to the approach in this research paper).
- See the open issues for a list of proposed features (and known issues).
Distributed under the MIT License. See LICENSE for more information.