Rome DAO

This project aims to be Ceasar's coin exchange... No, it's a joke :P

Actually the purpose of this project is to illustrate how the mainly Maker DAO smart contracts are set.

This project is based on Foundry Forge Dewiz Template.

Enviroment Setup

Solidity version

This project uses Solidity version 0.6.12

The reason is due changes in Solidity arithmetics from version 0.5.x to 0.8.x the Maker DAO's DSS Smart Contracts need to be compiled using 0.6.x version to avoid overflow errors when frob method is called.

Setup auxiliary tooling

Make sure you have node.js, shfmt and foundry installed.

Install dependencies

# Install tools from the nodejs ecosystem: prettier, solhint, husky and lint-staged
make nodejs-deps
# Install smart contract dependencies through `foundry update`
make update

Setup localchain using GETH

geth --datadir ~/temp/ --dev --http --http.api web3,eth,rpc,debug,net,txpool,admin --http.corsdomain "*" --http.vhosts "*" --http.addr 127.0.0.1 --ws --ws.api eth,net,debug,web3 --ws.addr 127.0.0.1 --ws.origins "*" --graphql --graphql.corsdomain "*" --graphql.vhosts "*" --vmdebug

Setup local environment variables

export ETH_FROM=0x
export FOUNDRY_ETH_FROM=$ETH_FROM
export ETHERSCAN_API_KEY=""
export POLYGONSCAN_API_KEY=""
export ETH_KEYSTORE="/Users/johndoe/temp/keystore"
export FOUNDRY_ETH_KEYSTORE_DIR=$ETH_KEYSTORE
export ETH_PASSWORD="$ETH_KEYSTORE/passwd.txt"
export FOUNDRY_ETH_PASSWORD_FILE=$ETH_PASSWORD

Helper scripts

Wrapper around forge/cast which figure out wallet and password automatically if you are using geth keystore.

• scripts/forge-deploy.sh: Deploys a contract. Accepts the same options as forge create
• scripts/forge-verify.sh: Verifies a deployed contract. Accepts the same options as forge verify-contract
• scripts/cast-send.sh: Signs and publish a transaction. Accepts the same options as cast send

Deploying artifacts

Deploy your own "Dai" token $DAI

Deploy an ERC-20 to simulate DAI tokens. It will be managed by the protocol, Rome DAO, that simulates Maker DAO mechanisms.

Example:

./scripts/forge-script.sh ./src/dai.s.sol:DaiDeploy --fork-url=$RPC_URL --broadcast -vvvv

Deploy Vat

Deploy Vat from vat.sol. VAT is the main compoment of Maker DAO. It manages the DAI supply versus debts tokenized in different collaterals.

Example:

<rome-dao-path>./scripts/forge-script.sh ./src/vat.s.sol:VatDeploy --fork-url=$RPC_URL --broadcast -vvvv

Deploy GemJoin from Rome DAO

Deploy a GemJoin contract from join.sol and allow it to spend your collateral. GemJoin holds your collateral and Vat Smart Contract use it to manage them.

GemJoin(address vat, bytes32 ilk, address gem);
denarius.approve(address(gemJoin), type(uint256).max);

Where:

• vat: <vat_addr>
• ilk: 'Denarius-A' //Example collateral token - Denarius was the Rome Empire silver coin
• gem: $DENARIUS // Example of an ERC20 token address that will be used as collateral to our Rome DAO DAI

Example:

./scripts/forge-script.sh ./src/GemJoin.s.sol:GemJoinDeploy --fork-url=$RPC_URL --broadcast -vvvv

Deploy DaiJoin from Rome DAO

Deploy a DaiJoin contract from join.sol. DaiJoin holds DAI and Vat Smart Contract use it to manage them.

DaiJoin(address vat, address dai)

Where:

• vat_: <vat_addr>
• dai_: $DAI ERC20 token address

Example:

./scripts/forge-script.sh ./src/DaiJoin.s.sol:DaiJoinDeploy --fork-url=$RPC_URL --broadcast -vvvv

Then, using Rome DAO scripts for:

1. Allow DaiJoin to mint $DAI
2. Allow DaiJoin to burn $DAI
3. Give Hope (permission) to DaiJoin operates moves $DAI for you within Vat
4. Make $DAI to rely on DaiJoin

Example:

./scripts/forge-script.sh ./src/DaiJoin.s.sol:DaiJoinReceiveAllowance --fork-url=$RPC_URL --broadcast -vvvv

Vat initialization from Rome DAO

Vat needs to rely on (authorize) GemJoin and DaiJoin Smart Contracts, initialize it. Also it is needed to set the global debt ceiling, set collateral debt ceiling, and set the collateral price.

See the sample code below:

vat.rely(<gem_join_addr>);
vat.rely(<dai_join_addr>);
vat.init(<bond-or-collateral-name>);
vat.file('Line', 1_000_000 * 10**45); // RAD: 45 decimals
vat.file('Denarius-A', 'line', 1_000_000 * 10**45); // RAD: 45 decimals
vat.file('Denarius-A', 'spot', 1 * 10**27) // RAY: 27 decimals

Example:

./scripts/forge-script.sh ./src/vat.s.sol:VatInitialize --fork-url=$RPC_URL --broadcast -vvvv

Detailed explanation about the debt/collateral definitions in VAT

Set the global debt ceiling using Line (with capital L)

vat.file('Line', 1_000_000 * 10**45); // RAD: 45 decimals

Set collateral debt ceiling line (with lower l)

Pay attention that now you define a name for your collateral, in our case: Denarius-A. The collateral data is stored within a struct called ilk. There is a mapping called ilks that allow the Vat supports several collaterals with different rate configurations.

vat.file('Denarius-A', 'line', 1_000_000 * 10**45); // RAD: 45 decimals

Set collateral price (spot)

Spot defines the collateral price within the Vat

vat.file('Denarius-A', 'spot', 1 * 10**27) // RAY: 27 decimals

In the above example, it makes $DENARIUS price equals DAI price ( 1 to 1 ).

Next steps

Now you can start to borrow and pay back the DAO.

For more details how to operate the protocol, please visit the project Understanding Maker DAO VAT Smart Contract