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Smart Contract Architecture

Loopify Finance implements a modular smart contract architecture supporting three core strategies: flash loan looping, yield optimization, and pre-deposit systems.

Core Contracts​

LoopifyStrategy Contract​

Main strategy execution contract supporting all three strategies.

// Core strategy parameters
uint256 public constant MAX_LEVERAGE = 500;  // 5x
uint256 public constant MAX_LTV = 8000;     // 80%
uint256 public constant LIQUIDATION_THRESHOLD = 8000;

Health Factor Calculation​

function getHealthFactor(address user) public view returns (uint256) {
    if (pos.debtValue == 0) return type(uint256).max;
    return (pos.collateralValue * LIQUIDATION_THRESHOLD * 1e18) / (pos.debtValue * 10000);
}

Health Factor Zones:

  • Safe: > 2.0
  • Warning: 1.3 - 2.0
  • Critical: 1.05 - 1.3
  • Emergency: < 1.05 (auto-deleverage)

Flash Loan Integration​

Primary flash loan providers with zero fees:

  • Balancer: Primary source
  • Morpho Blue: Backup option
// Flash loan callback
function receiveFlashLoan(
    IERC20[] memory tokens,
    uint256[] memory amounts,
    bytes memory userData
) external nonReentrant {
    // Execute strategy logic
    _executeStrategy(tokens, amounts, userData);

    // Repay loan (zero fees from Balancer/Morpho)
    tokens[0].transfer(msg.sender, amounts[0]);
}

Yield Optimization Vault​

ERC4626-compliant vault for automated yield strategies.

Withdrawal System​

// Smart withdrawal timing
function requestWithdrawal(uint256 shares) external {
    uint256 assetsRequested = previewRedeem(shares);
    uint256 vaultBalance = IERC20(asset()).balanceOf(address(this));

    // Instant if funds available, timelock if deployed
    uint256 delay = assetsRequested <= vaultBalance ? 0 : 12 hours;

    withdrawalRequests[msg.sender] = WithdrawalRequest({
        shares: shares,
        unlockTime: block.timestamp + delay,
        active: true
    });
}

Emergency Controls​

Circuit Breakers​

// Emergency pause system
function emergencyPause() external onlyRole(PAUSER_ROLE) {
    _pause();
    emit EmergencyPaused(msg.sender, block.timestamp);
}

Position Recovery​

// Automated liquidation protection
function autoProtectPosition(address user) external {
    uint256 healthFactor = getHealthFactor(user);
    require(healthFactor < 1.5, "Position healthy");

    // Execute deleveraging to restore health
    _executeDeleveraging(user, healthFactor);
}

Security Features​

Access Control​

  • Multi-signature requirements for critical operations
  • Role-based permissions (Strategist, Liquidator, Keeper)
  • 48-hour timelock for parameter changes

Error Handling​

  • Comprehensive custom errors for gas efficiency
  • Automatic fallback mechanisms
  • Position recovery systems

Oracle Integration​

  • Multiple price feed sources
  • Price deviation monitoring
  • Failsafe mechanisms

Contract Addresses:

  • Testnet: Coming Soon
  • Mainnet: In Development

Security Audits: In progress with Trail of Bits and Consensys Diligence