DeFi Asset Management Platform Development for Dehive
DeHive is a multi-asset portfolio management platform that facilitates trading and helps users benefit from cryptocurrency indexes. DeHive Cluster is a yield-generating crypto index that unites the best-performing tokens into one basket carefully composed by internal experts. DeHive Impulse is an automatic compounding tool for LP tokens that enables interest on interest and boosts profit.
DeHive is a side project of Blaize, which our team created from the initial concept till its present state. In this case study, we’ll show you exactly how we did it.
WHAT WAS THE TASK?
The development of a DeFi asset management platform that provides yield-generating crypto indexes and automatic compounding staking pools.
The main priority was to develop an efficient and user-friendly DeFi asset management platform in the first place, and only after that could we work on financial instruments like crypto indexes and pools. Then, we had to deploy the platform to multiple networks and work on auto-compound and stablecoin tools.
PROJECT ARCHITECTURE
As the Blaize team came up with an idea of a yield-generating crypto index, we had to do a lot of work creating the business model and protocol mechanics to make the platform work the way it’s supposed to. We will describe the main protocol mechanics below.
How Cluster is assembled
In order to acquire the DeHive Cluster, the user needs to make a contribution in ETH corresponding to the weight of the selected underlying assets that represent the Cluster.
How Cluster is disassembled
In order to exit, the user provides the Cluster or Cluster to the platform along with a certain amount of DHV tokens that will go to the protocol treasury and be used for subsequent rounds of liquidity mining, rewards distributions, etc., to encourage the user’s engagement with the protocol.
The user receives ETH in exchange for redeemed Clusters at the current market price, provided by a system of integrated oracles.
Optionally, users may allow the protocol to further re-allocate the underlying digital assets held in their chosen Clusters, and the protocol will apply these towards participation in yield farming protocols using the best strategies developed by an internal DeFi specialist.
THE DEVELOPMENT PROCESS
To complete the DeFi asset management development project, we assembled a powerful dev team that included DeFi and FinTech experts and analytics, a team of blockchain engineers proficient in Solidity, and experienced back-end and Subgraph specialists. We also had several front-end developers.
Here’s just a brief list of what the team has done so far:
- developed the whole DeHive platform from scratch (through the stages of an MVP and a beta version);
- integrated four major chains: Ethereum, Polygon, BNB chain, and Gnosis chain;
- launched six Clusters (yield-generating crypto indexes) on different chains;
- enabled staking and yield farming opportunities so that our users can get more profit while holding Clusters;
- developed the technology for enabling automatic compound interest in decentralized finance — DeHive Impulses;
- launched several DeHive Impulses on major blockchains.
HAVE AN IDEA FOR YOUR OWN DEFI PLATFORM? READ HOW OUR EXPERIENCED TEAM CAN HELP YOU WITH.
CHALLENGES WE CONFRONTED
There are three types of common problems that we encounter when it comes to DeHive Clusters: issues with the protocol, the cases when a farming protocol does not update rewards, and when the token gets updated and changes its address.
- Issues with the underlying protocols are probably our most frequent problems. For instance, when we were developing Impulses, QuickSwap suddenly changed their reward tokens (from QUICK to dQUICK + MATIC). Thus, we also had to migrate our Impulses to the new scheme.
- The situation when the farming protocol does not update rewards happened twice to our Clusters. The first time we faced it was with the Poly Cluster, where some tokens were redirected to the Aave protocol for farming. There were issues with replenishing the reward pool on that protocol, so we had to contact them every time and wait for them to top it up because we have no direct influence on such errors.
The second time such a situation happened with one of our Stables (stable instruments that enable automatic compound interest on stablecoins) based on Curve. That time, we could update the reward logic to be less dependent on Curve and its reward pools.
We believe that such a problem might occur again, so we are currently developing migration mechanisms that would make us fully independent on whether there are any reward tokens on the target protocol for farming. - Token updates and a new token address are the most serious issues we’ve faced during the whole time of Clusters’ existence. At first, we encountered it in Poly Gaming Cluster when the DG token by Decentralized Games migrated to a new address. To be precise, the whole protocol simply migrated to a different token. Since Poly Gaming Cluster was the first-generation V1 Cluster, we didn’t have the option to change one of the tokens in its structure then. So we had to create a mechanism for the Cluster structure optimization and fully extract this token.
The new application is a modern solution that is built on a brand-new architecture and framework. We’ve made the dApp modular and, thus, easily upgradeable so that you can enjoy new features and updates much faster and use them more efficiently.
Besides, the DeHive dApp 2.0 is more stable regarding the work with blockchain nodes, which means that the information will be loaded faster, and the user rarely experience connection loss.
RESULT
At the moment, DeHive is an efficient, user-friendly DeFi platform that provides users with multiple financial instruments for building a yield-generating portfolio.
DeHive Clusters work as an economic metric of the DeFi market while reflecting different segments of it. As yield-generating indexes, they allow users to build their crypto portfolio with minimum effort and get a stable income from different protocols.
We originally built the DeHive platform to enable decentralized index issuing and management, but now it’s much more. On top of DeHive Clusters, users can access auto-compounding tools and multiple stablecoin instruments. The whole ecosystem is powered and can be accessed with the help of DHV, the native DeHive token.
