The MC²Finance architecture is:
Interoperable Scalable Robust & Secure
The MC²Finance protocol architecture uses a hybrid on and off-chain model. A hybrid tech stack model capitalizes on monetary and technical efficiency gains from performing intensive calculations off-chain as the solution optimizes for economic benefit and a dynamic UI interface (e.g. extensible via audit codes) for Users².
Decentralized storage and execution of portfolio smart contracts result in secure, efficient, and transparent content contributions for Users² actioning on the MC²Finance marketplace. Furthermore, automated audit offerings built on top of this technology are only possible due to the decrease in security vulnerabilities and increase in market efficiencies (automation).
Cross-chain architecture
Portfolios following an Expert Strategy² can be created and multiplied on any compatible chain. MC²Finance V1 will start with EVM-compatible chains. Individual economic calculations and oracle data are prescribed to each portfolio.
Smart contracts & portfolios
Portfolios² have three components:
1. A standard token representing the total value of all assets inside the portfolio; 2. A standardized interface to deposit and withdrawal funds; and 3. An interface to communicate the underlying asset to the oracle.
There are two types of Portfolios²:
1. Type 1 Strategy Portfolios²: Contain basic ERC-20 tokens strategy. Standard portfolios can use most ERC-20 tokens and access AMMs for trading. 2. Type 2 DeFi portfolios²: Wrap a DeFi protocol with a simple accruing token. A DeFi-Portfolio² wraps more complex protocols (e.g. performing periodic calls to retrieve earnings, and rebalance staking) into a simple accruing token. This method allows the DeFi-protocol to be used by a Strategy Portfolios².
Smart Contracts
3 core on-chain smart contracts secure Portfolios²:
An escrow contract → Handles deposits and withdrawals
An access control contract → Handles black and whitelisting
A treasury contract → Handles access control for the AMM
Oracles
MC²Finance Oracles flag, send, call, and prevent unauthorized users from accessing data and prevent unauthorized database changes. V1 protocol activities are off-chain and will leverage the following oracles:
Oracle 1: Supports sourcing expert strategies Oracle 2: Supports Type 1 (strategy) Portfolios² Oracle 3: Supports Type 2 (DeFi) Portfolios²
Security and access protection
The MC²Finance protocol and its’ marketplace are designed to minimize access as a means of protecting assets and Users².
1. Deposits and withdrawals only work with the Valut² token 2. The AMM only interacts with a specific set of smart contracts 3. The MC²Finance internal economic engine observes and verifies AMM swap and transaction safety 4. Core audit functions are actioning on-chain to further protect against malicious attacks
MC² Finance believes in extensive Audits. First, before the testnet release will receive an onchain audit, and before the EVM Mainnet release there will be audits from the offchain, as well as onchain components, as well as audits deducted from key partner
API & widget
The protocols’ API retrieves the status of all current Portfolios on a chain: their current values, and experts. Furthermore, the “meow meow meow” protocol widgets interact with the strategies, enabling easy deposits and withdrawals from users’ wallets.