Fudoken is a decentralized, over-collateralized stablecoin system built using Solidity and Foundry.
It allows users to deposit assets like WETH and WBTC as collateral to mint a USD-pegged stablecoin while maintaining stability through automated risk management and liquidation mechanisms.
The core of the system is the DSCEngine, which manages all minting, collateral deposits, and liquidation logic.
It integrates Chainlink price oracles to constantly monitor collateral value, ensuring that every issued token remains over-collateralized and backed by real on-chain assets.
- DSCEngine.sol – Handles minting, redemption, and liquidation logic.
- DecentralizedStablecoin.sol – ERC20 implementation for the USD-pegged stablecoin.
- Oracle Integration – Uses Chainlink price feeds to determine real-time collateral value.
- Collateral Management – Allows users to deposit, withdraw, and maintain safe positions.
- Users deposit WETH or WBTC as collateral.
- DSCEngine calculates the mintable amount based on collateral ratio.
- Stablecoin (FUD) is minted and sent to the user.
- If collateral value drops below threshold, liquidation is triggered automatically.
- Maintain stable USD peg through dynamic collateral valuation.
- Ensure decentralization and transparency — no centralized controllers.
- Protect user funds with secure liquidation and oracle-based monitoring.
- Implement gas-efficient, modular architecture with Foundry.
Fudoken represents a minimal yet powerful stablecoin protocol designed to demonstrate how collateralized debt positions (CDPs), oracle integrations, and liquidation logic can maintain a self-regulating, decentralized, and fully on-chain stable asset.