Yield Drip
Automated DCA yield farming with 1inch LOP - earn yield while dollar-cost averaging into ETH
Demo
About
YieldDrip is a DeFi application that solves the capital inefficiency problem in traditional Dollar-Cost Averaging (DCA). When users set up a DCA strategy to buy ETH over time, their idle capital typically sits in a wallet earning nothing. YieldDrip changes this by immediately depositing all capital into a yield-bearing vault (sDAI) and withdrawing funds just-in-time for each purchase. The system works through three core smart contracts: - YieldDepositHelper: Immediately deposits user's DAI into sDAI vault to start earning yield - YieldWithdrawHelper: Withdraws exact amounts needed for each trade, keeping remaining funds earning yield - LinearTwapGetter: Calculates proportional amounts for each time slice using Time-Weighted Average Price Users create a single EIP-712 order that generates 24 separate limit orders on 1inch's Limit Order Protocol. Each order includes custom predicates for time-based execution and price floor protection using Chainlink feeds. The system automatically skips purchases when ETH price exceeds user-defined limits, keeping funds earning yield until prices become favorable. Key innovations: - Zero opportunity cost: 100% capital utilization vs ~50% in traditional DCA - Real yield earning: sDAI provides 3-5% APR on idle capital - Price protection: Smart predicates prevent overpaying - Single signature: One EIP-712 signature creates entire DCA strategy The frontend provides real-time strategy monitoring, yield analytics, and manual execution controls for demo purposes.
How it's made
YieldDrip is built using a modern DeFi stack with real smart contract integration: Smart Contracts (Solidity + Foundry): - YieldDepositHelper: Handles DAI to sDAI conversion for immediate yield earning - YieldWithdrawHelper: Manages just-in-time DAI withdrawal for order execution - LinearTwapGetter: Calculates dynamic amounts for each time slice using TWAP - MockERC4626Yield: Simulates yield-bearing vault functionality for testing - Comprehensive test suite with Foundry for security validation Frontend (Next.js + TypeScript + Wagmi): - Real 1inch Limit Order SDK integration using @1inch/limit-order-sdk - Custom React hooks (use1inchIntegration) for seamless DeFi interaction - Wagmi for wallet connection and EIP-712 signature handling - Real-time order monitoring with WebSocket integration - Modern UI with Tailwind CSS and shadcn/ui components Key Technical Achievements: - Direct integration with 1inch LOP v4 using official SDK - Custom SDK implementation for direct contract interaction - EIP-712 structured data signing for secure order creation - Predicate-based order execution with Chainlink price feed integration - Real-time yield tracking with live sDAI balance monitoring Deployment & Infrastructure: - Foundry-based deployment system with comprehensive scripts - Base Sepolia testnet deployment with contract verification - Environment-based configuration for seamless testnet/mainnet switching - Docker-ready backend architecture for production scaling The system demonstrates advanced DeFi concepts including yield farming, automated market making, and cross-protocol integration while maintaining excellent UX through single-signature strategy creation.