Decentralized StableCoin (DSC) Project

This repository contains the smart contract implementation of a Decentralized StableCoin (DSC) system, which is pegged to the US Dollar and collateralized by Ethereum (ETH) and Bitcoin (BTC). The project leverages Foundry for testing and deployment, ensuring a robust and scalable implementation.

NOTE: THE TESTS ARE NOT COMPLETE

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Overview

The DSC system is designed to provide a decentralized and algorithmic stablecoin solution with the following features:

• Collateralized by ETH and BTC: The stablecoin's value is secured using ETH and BTC as collateral.
• Algorithmic Minting: DSC tokens are minted algorithmically to maintain the peg to USD.
• Decentralized Governance: The system is governed by a DSEngine contract to ensure decentralization.
• Overcollateralization: Users must deposit collateral exceeding the value of minted DSC to ensure system stability.

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Smart Contracts

1. DecentralizedStableCoin.sol

• An ERC20 token with additional burn and mint functionalities.
• Key Features:
  • Minting: Only the owner (governance) can mint new DSC tokens.
  • Burning: DSC tokens can be burned to reduce supply.
  • Implements OpenZeppelin's ERC20Burnable and Ownable.

2. DSCEngine.sol

• The core logic contract for managing collateral, minting, and liquidation.
• Key Features:
  • Deposit and redeem collateral (ETH, BTC).
  • Mint and burn DSC tokens based on the health factor of user accounts.
  • Liquidation mechanism to ensure overcollateralization.
  • Price feeds via Chainlink for collateral valuation.

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Key Concepts

1. Health Factor: A metric to determine the safety of a user's collateralized position. A value below 1 triggers liquidation.
2. Collateralization: The system requires users to deposit more collateral than the DSC they mint.
3. Liquidation: Users with a health factor below 1 can have their collateral seized to cover their debt.

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