Hedge

Automated currency protection for LATAM using Stellar and Reflector oracles.

Overview

Hedge protects your purchasing power by automatically converting a portion of your salary to USD and/or XML when your local currency weakens beyond a configurable threshold. Built on Stellar with real-time exchange rates from Reflector oracles, targeting LATAM workers and professionals facing currency devaluation.

Supported Currencies

• 🇦🇷 ARS (Argentine Peso) - Testnet available
• 🇧🇷 BRL (Brazilian Real) - Mainnet ready
• 🇵🇪 PEN (Peruvian Sol) - Mainnet ready
• 🇨🇱 CLP (Chilean Peso) - Coming soon
• 🇲🇽 MXN (Mexican Peso) - Coming soon
• 🇨🇴 COP (Colombian Peso) - Coming soon

How It Works

Architecture

graph TB
    User[LATAM User] --> Frontend[React Frontend]
    Frontend --> Wallet[Stellar Account]
    Frontend --> Contract[Hedge Smart Contract]
    
    Contract --> Oracle[Reflector Oracle]
    Contract --> Storage[User Configuration]
    
    Oracle --> Prices[Real-time FX Rates]
    Storage --> Triggers[Auto Conversion Logic]
    
    Triggers --> Protection[USD Protection]
    
    classDef primary fill:#3b82f6,stroke:#1d4ed8,color:#fff
    classDef oracle fill:#10b981,stroke:#059669,color:#fff
    classDef protection fill:#f59e0b,stroke:#d97706,color:#fff
    
    class Frontend,Contract,Wallet primary
    class Oracle,Prices oracle
    class Storage,Triggers,Protection protection

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Components:

• Smart Contract: Soroban contract with Reflector oracle integration
• Frontend: React + TypeScript with mobile-first, intuitive interface
• Oracle Integration: Reflector for real-time forex and crypto price feeds
• Storage: Persistent user configurations and conversion history

Key Features

• Automatic Triggers: Conversions triggered by currency devaluation thresholds
• Real-time Rates: Live exchange rates via Reflector oracles
• Non-custodial: Users maintain control of their funds
• Mobile-first: Optimized for mobile usage patterns
• Historical Tracking: Complete protection and conversion metrics

Quick Start

Prerequisites

• Node.js 18+
• Rust and Soroban CLI
• Stellar CLI configured with testnet account

Installation

1. Clone and setup

   git clone https://github.com/yourusername/hedge.git
   cd hedge

2. Install dependencies

   npm install
   cd frontend && npm install && cd ..

3. Configure environment

   cp .env.example .env
   # Update .env with your configuration

4. Build and deploy contract

   cd contracts/hedge
   cargo build --target wasm32-unknown-unknown --release
   stellar contract deploy --wasm target/wasm32-unknown-unknown/release/hedge_contract.wasm --source alice --network testnet

5. Start development server

   cd ../../frontend
   npm run dev

Test Credentials

For testing the application, use the following testnet configuration:

• Network: Stellar Testnet
• Test Account: Alice (configured via Stellar CLI)
• Contract Address: CCQYSKW4OZRDB7WGHTMZLKBP3QZB32RLHZQQIZ235GZRAMUJTA63TXCV
• Oracle Address: CAVLP5DH2GJPZMVO7IJY4CVOD5MWEFTJFVPD2YY2FQXOQHRGHK4D6HLP

To configure Alice account:

stellar keys generate alice --network testnet
stellar keys fund alice --network testnet

Smart Contract Functions

Core Functions

• setup_protection(user, currency, percentage, threshold) - Configure user protection
• process_salary(user, amount) - Process salary and trigger conversions if needed
• get_config(user) - Retrieve user configuration
• get_metrics(user, days_back) - Get protection metrics
• get_metrics_mock(user, days_back) - Mock metrics for testnet testing

Example Usage

# Setup protection for ARS with 25% conversion at 2% devaluation
stellar contract invoke --id CCQYSKW4OZRDB7WGHTMZLKBP3QZB32RLHZQQIZ235GZRAMUJTA63TXCV \
  --source alice --network testnet --send=yes \
  -- setup_protection \
  --user $(stellar keys address alice) \
  --local_currency ARS \
  --target_percentage 25 \
  --threshold_bp 200

# Check configuration
stellar contract invoke --id CCQYSKW4OZRDB7WGHTMZLKBP3QZB32RLHZQQIZ235GZRAMUJTA63TXCV \
  --source alice --network testnet \
  -- get_config --user $(stellar keys address alice)

Deployed Contracts

Testnet

• Contract Address: CCQYSKW4OZRDB7WGHTMZLKBP3QZB32RLHZQQIZ235GZRAMUJTA63TXCV
• Network: Stellar Testnet
• Oracle: CAVLP5DH2GJPZMVO7IJY4CVOD5MWEFTJFVPD2YY2FQXOQHRGHK4D6HLP
• Explorer: Stellar Expert Testnet

Mainnet (Planned)

• Status: Ready for deployment
• Oracle: CALI2BYU2JE6WVRUFYTS6MSBNEHGJ35P4AVCZYF3B6QOE3QKOB2PLE6M
• Supported Assets: ARS, BRL, PEN tokens available

Why We Built It This Way

Problem Statement

LATAM workers face significant purchasing power erosion due to currency devaluation. Traditional hedging solutions are either unavailable, expensive, or too complex for individual users.

Technical Decisions

1. Stellar Blockchain: Lower transaction costs and better financial infrastructure for LATAM
2. Reflector Oracles: Reliable, decentralized price feeds specifically designed for Stellar
3. Automatic Triggers: Reduces manual intervention and emotional decision-making
4. Mobile-first Design: Matches usage patterns of target demographic
5. Threshold-based System: Balances protection with transaction costs

Smart Contract Architecture

The contract uses a threshold-based system to minimize unnecessary conversions while providing protection:

• Configurable thresholds: Users set their own risk tolerance
• Time delays: Prevents over-trading during volatile periods
• Mock functions: Enables testing when oracle data unavailable
• Address-based tokens: Direct integration with Stellar asset contracts

Development

Project Structure

hedge/
├── contracts/hedge/          # Soroban smart contract
│   ├── src/
│   │   ├── lib.rs           # Main contract logic
│   │   ├── reflector.rs     # Oracle integration
│   │   ├── storage.rs       # Data persistence
│   │   └── types.rs         # Type definitions
│   └── Cargo.toml
├── frontend/                # React frontend
│   ├── src/
│   │   ├── App.tsx          # Main application
│   │   ├── hooks/           # Custom hooks
│   │   └── utils/           # Utilities
│   └── package.json
└── docs/                    # Documentation

Testing

# Test smart contract
cd contracts/hedge
cargo test

# Test frontend
cd frontend
npm test

# Integration testing on testnet
npm run test:integration

Roadmap

• MVP — Target date: October 2024
  Basic protection setup, manual conversions, testnet deployment

• Beta — Target date: December 2024
  Automatic conversions, mainnet deployment, ARS/BRL/PEN support

• V1 — Target date: Q1 2025
  Full LATAM currency support, advanced analytics, mobile app

Built For

Stellar Hacks: KALE x Reflector Composability Hackathon

Demonstrating real-world composability by building directly on Reflector's oracle infrastructure to solve actual problems faced by LATAM workers and professionals.

Contributing

1. Fork the repository
2. Create a feature branch
3. Implement changes with tests
4. Submit a pull request

All contributions require code review and security assessment.

License

MIT License - see LICENSE for details.

Security

Report security vulnerabilities to [email protected]. Do not create public issues for security concerns.

Support

• Documentation: docs/
• Issues: GitHub Issues
• Discord: Hedge Community

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Disclaimer: This is experimental software. Users should understand the risks involved in automated currency conversion and DeFi protocols. Always test with small amounts first.