The purpose of this page is to provide a comprehensive overview of the architecture of our BakerFi protocol. This includes a detailed description of the system components, interactions, data flow, security considerations, and scalability aspects.

1. Smart Contracts

For BakerFi to operate, it integrates with several decentralized protocols to achieve its maximum efficiency, namely:

• Liquid staking providers such as Lido, Stader, Frax, or any other available staking service, that allows the possibility to achieve the standard yield for the user;
• Lending and borrowing providers such as Aave, Morpho, Compound, Ajna, and others allow recursive borrowing and staking within the protocol;
• DEXes and swapping services such as Uniswap, 1inch, Balancer, Curve, and others to be able to swap between tokens, collateral, and debt tokens, among others.

The modular smart contract design allows the system to easily integrate with DeFi protocols that provide liquidity and security to our staking strategies.

1.1 BakerFi Vault

The purpose of a vault smart contract is to deploy specific strategies to maximize the yield or returns generated by the assets held within the vault. This is a smart contract where the users deposit their ETH and receive a share of the pool <x>brETH.

A share of the pool is an ERC-20 Token (transferable) and could be used later to withdraw their owned amount of the pool that could contain (Assets + Yield ). This vault could use a customized Strategy to deploy the capital and harvest a yield.

The Vault is Pausable by the governor and uses the Settings contract to retrieve base performance, withdraw fees, and other settings.

The Contract is upgradeable and can use a BakerProxy in front of it.

1.2 Strategy

This contract implements a strategy that could be used to deploy an asset that is amplified and harvest a yield.