Architecture Overview
Harbor Protocol is built on a robust and secure architecture that enables the creation and management of synthetic assets. This document provides a high-level overview of the protocol's architecture.
System Components
1. Price Oracle for Pegged Tokens
- Chainlink price feeds for reliable market data
- Transparent display of oracle on market app page
2. Token System
HA Tokens (Harbor Anchored)
- 1:1 price with oracle price
- Fully collateralized
- Redeemable for underlying assets at any time
HS Tokens (Harbor Sail)
- Variable leverage exposure
- Liquidation protection
- Automated rebalancing
3. Stability Pools
- Collateral management
- Automated rebalancing
- Yield from collateral
- TIDE rewards distribution
4. Governance System
- TIDE token holders
- Proposal creation and voting
- Parameter adjustments
- Emergency controls
Key Mechanisms
Price Stability
- Stability pools maintain optimal collateral ratios
- Automated rebalancing during market stress
- Liquidation protection for leveraged positions
- Multiple price feeds for reliability
Yield Generation
- Collateral yield from stETH and other yield-bearing assets
- Trading fees from market operations
- TIDE rewards for participation
- Boost multipliers for TIDE holders
Risk Management
- Collateral ratio monitoring
- Liquidation thresholds
- Circuit breakers
- Emergency pause functionality
Technical Stack
- Smart Contracts: Solidity
- Frontend: Next.js, React, TailwindCSS
- Price Feeds: Chainlink
- Testing: Foundry, Hardhat
- Deployment: Anvil (local), Ethereum mainnet
Security Considerations
- Multiple price feed redundancy
- Time-weighted average prices
- Circuit breakers for extreme market conditions
- Regular security audits
- Bug bounty program
Future Enhancements
- Additional asset support
- Cross-chain capabilities
- Advanced trading features
- Enhanced governance tools
- Mobile application