aave-octant-integration

Demo

About

The problem it solves This project solve the **sustainable public goods funding problem** in web3 by creating DeFi primitive where users can deposit idle USDC into Aave v3 and **automatically donate 100% of yield** to public goods while maintaining full principal protection. **Key innovations:** - **Zero-cost giving**: Users lose nothing - they get back exactly what they deposited - **Passive funding**: Generates continuous funding for Ethereum public goods without active donations - **Principal protection**: Users maintain 1:1 share-to-asset ratio through innovative share minting mechanics - **Production-ready**: Complete Aave v3 ERC-4626 integration with 5 safety mechanisms (supply caps, liquidity limits, emergency shutdown, loss protection, reentrancy guards) **Real impact:** On just 1,500 USDC, the strategy generated 6 USDC in donations over 30 days - imagine scaling this to millions of dollars in idle treasury assets across DAOs and protocols.

How it's made

Challenges we ran into **Challenge 1: ERC-4626 Vault Allowance Bug** - **Problem**: Withdrawals failed with "insufficient allowance" - the WETH ATokenVault had a deployment bug where it didn't properly initialize approvals to Aave Pool - **Solution**: Switched test configuration from WETH vault to USDC vault (0x73edD...bC9E6) which was properly deployed, achieving 83% test pass rate (10/12 tests passing) **Challenge 2: 3-Layer Architecture Complexity** - **Problem**: Understanding how profit minting maintains 1:1 user PPS across User → Strategy → ATokenVault → Aave Pool layers - **Solution**: Created detailed accounting documentation showing that minting NEW shares to dragonRouter increases both totalAssets AND totalSupply proportionally, preserving existing holders' share value **Challenge 3: Interface Casting in TokenizedStrategy** - **Problem**: Functions like keeper(), dragonRouter() exist in base TokenizedStrategy contract, not directly accessible from YieldDonatingStrategy due to delegatecall architecture - **Solution**: Cast strategy address to appropriate interfaces (ITokenizedStrategy, IERC4626) when accessing inherited functions, maintaining clean separation of concerns