Pooka Finance - Smart Contracts

AI powered Cross-chain perpetual trading protocol built on Avalanche with Ethereum integration via Chainlink CCIP.

Overview

Pooka Finance enables leveraged cryptocurrency trading across multiple blockchain networks. Users can deposit USDC from Ethereum (Sepolia) and trade BTC/USD and ETH/USD perpetual futures on Avalanche (Fuji) with up to 3x leverage.

Architecture

Cross-Chain Trading Flow

Pooka Finance solves the fundamental problem of cross-chain DeFi by enabling seamless trading across networks:

Direct Deposits on Avalanche

• Users depositing USDC can directly interact with the Perps Contract on Avalanche Fuji
• Users depositing AVAX or LINK tokens are routed through the PoolManager which converts assets to USDC and forwards to the Perps Contract

Cross-Chain Deposits (Sepolia → Avalanche)

• Users deposit USDC on Sepolia through the CrossChainManager contract
• Chainlink CCIP bridges funds to Avalanche PoolManager (takes ~25 minutes)
• Pre-funding architecture: PoolManager immediately credits users for instant trading while CCIP settles in background

Automated Risk Management

• Perps.sol and PriceOracle.sol handle all trading logic on Avalanche Fuji
• All positions managed in USDC with real-time Chainlink price feeds
• Chainlink Automation monitors positions 24/7 and triggers liquidations
• VRF randomization ensures fair liquidation ordering

Protocol Components

The protocol consists of smart contracts deployed across two chains:

Avalanche Fuji (Main Trading Chain)

• Perps.sol - Core perpetual trading engine
• PoolManager.sol - Multi-token deposit handler and liquidity management
• PriceOracle.sol - Chainlink price feed integration
• Automation contracts - Automated liquidation systems
• VRFRandomizer.sol - Fair liquidation ordering

Ethereum Sepolia (Cross-Chain Bridge)

• CrossChainManager.sol - CCIP-based USDC bridging to Avalanche

Deployed Contracts

Avalanche Fuji Testnet

PriceOracle:              0x9f2b180d135c46012c97f5beb02307cc7dc32cbd
PerpsFeeManager:          0x117d284f89fe797a65145e67cc31e21dbbf60cdc
PerpsCalculations:        0xb6fc2a81fc5803a1e5a855e69cdad79eae9a91bc
VRFRandomizer:            0xbb0599742317d4a77841d3f0d6c9bf076d83bd5a
VRFAutomation:            0x0687d4d5ea6122d975ef845c0e55a514d65da64a
Perps:                    0x9d2b2005ec13fb8a7191b0df208dfbd541827c19
PoolManager:              0xb5abc3e5d2d3b243974f0a323c4f6514f70598cf
TimeLiquidationAutomation: 0x636f1b91cfd7b91a4f7fb01e52a5df5d818a6060
LogLiquidationAutomation:  0xaa3ffc9a984d4fcac150a9d5f2b3ce004234b471

Ethereum Sepolia Testnet

CrossChainManager:        0x0bb4543671f72a41efcaa6f089f421446264cc49

Smart Contracts

Core Trading Engine

Perps.sol

Main perpetual futures contract handling:

• Position management (open/close with leverage)
• USDC collateral deposits/withdrawals
• Automated liquidations with VRF randomization
• Risk management and user limits

Key Functions:

function depositUSDC(uint256 usdcAmount)
function openPosition(string symbol, uint256 collateralUSDC, uint256 leverage, bool isLong)
function closePosition(string symbol)
function liquidatePositions() returns (uint256 liquidated)
function depositUSDCForUser(address user, uint256 usdcAmount) // For cross-chain deposits

PerpsCalculations.sol

Risk calculation engine:

• P&L calculations for long/short positions
• Liquidation price computation
• Margin ratio monitoring
• Position health checks

PerpsFeeManager.sol

Fee structure management:

• Opening fee: 1% of collateral
• Closing fee: 1% of collateral
• Holding fee: 1% daily on collateral
• Profit tax: 30% on realized gains

Cross-Chain Infrastructure

CrossChainManager.sol (Sepolia)

CCIP bridge for cross-chain USDC deposits:

• Transfers USDC from Sepolia to Avalanche PoolManager
• Includes safety limits (max 100 USDC per transaction)
• Handles CCIP message construction and fees

Key Functions:

function depositAndSend(uint256 usdcAmount)

PoolManager.sol (Avalanche)

Multi-token deposit handler:

• Accepts AVAX, LINK, and USDC deposits
• Converts tokens to USDC using Chainlink price feeds
• Forwards converted USDC to Perps contract
• Handles both direct deposits and cross-chain CCIP messages

Key Functions:

function depositUSDCForUser(address user, uint256 usdcAmount) // Pre-funding for instant UX
function depositDirect(address user, uint256 usdcAmount) // Final CCIP settlement

Automation & Oracles

VRFRandomizer.sol

Chainlink VRF integration for fair liquidation ordering:

• Generates verifiable randomness
• Shuffles user arrays to prevent liquidation front-running
• Auto-refreshes randomness every 6 hours

VRFAutomation.sol

Automation contract for VRF randomness refresh:

• Automatically calls requestRandomWords() every 6 hours
• Ensures liquidation fairness is maintained

TimeLiquidationAutomation.sol & LogLiquidationAutomation.sol

Chainlink Automation contracts:

• Time-based: Triggers liquidations every 4 hours
• Log-based: Triggers on position events for immediate liquidation checks

PriceOracle.sol

Chainlink price feed aggregator:

• Supports BTC/USD, ETH/USD, AVAX/USD, LINK/USD
• Normalizes all prices to 8 decimals
• Real-time price data for position calculations

Installation

# Clone repository
git clone https://github.com/Dhruv-Varshney-developer/pooka-finance-contracts
cd pooka-finance-contracts

# Install dependencies
npm install

# Copy environment template
cp .env.example .env

Environment Setup

Create .env file with the following variables:

PRIVATE_KEY=your_deployer_private_key
ETHERSCAN_API_KEY=your_etherscan_api_key  
SEPOLIA_RPC_URL=your_sepolia_rpc_url
AVAX_RPC_URL=your_avalanche_fuji_rpc_url

Deployment

1. Deploy on Avalanche Fuji

npx hardhat run scripts/deploy-avax.ts --network avax_testnet

This deploys the complete trading infrastructure and outputs all contract addresses.

2. Deploy Cross-Chain Manager on Sepolia

# Update AVAX_POOL_MANAGER_ADDRESS in scripts/deploy-sepolia.ts
# with the PoolManager address from step 1

npx hardhat run scripts/deploy-sepolia.ts --network sepolia

3. Verify Contracts

# Verification commands are output by deployment scripts
npx hardhat verify --network avax_testnet <CONTRACT_ADDRESS> <CONSTRUCTOR_ARGS>

Testing

# Run all tests
npm test

# Run specific test suites
npm run test:perps          # Core trading functionality
npm run test:price-oracle   # Price feed integration
npm run test:fee-manager    # Fee calculations
npm run test:calculations   # Risk calculations
npm run test:automation     # Liquidation automation
npm run test:crosschain     # CCIP integration
npm run test:integration    # End-to-end workflows

Network Configuration

Avalanche Fuji Testnet

• USDC Token: 0x5425890298aed601595a70AB815c96711a31Bc65
• LINK Token: 0x0b9d5D9136855f6FEc3c0993feE6E9CE8a297846
• CCIP Router: 0xF694E193200268f9a4868e4Aa017A0118C9a8177
• Chain Selector: 14767482510784806043
• VRF Coordinator: 0x5C210eF41CD1a72de73bF76eC39637bB0d3d7BEE
• VRF Key Hash: 0xc799bd1e3bd4d1a41cd4968997a4e03dfd2a3c7c04b695881138580163f42887
• VRF Subscription ID: 78089242584694303630769952839292814618695167473477384782355522507914412967813

Ethereum Sepolia Testnet

• USDC Token: 0x1c7D4B196Cb0C7B01d743Fbc6116a902379C7238
• LINK Token: 0x779877A7B0D9E8603169DdbD7836e478b4624789
• CCIP Router: 0x0BF3dE8c5D3e8A2B34D2BEeB17ABfCeBaf363A59
• Chain Selector: 16015286601757825753

Usage Examples

Opening a Position

// 1. Deposit USDC collateral
perps.depositUSDC(50_000_000); // $50 USDC (6 decimals)

// 2. Open 2x leveraged long position on BTC/USD
perps.openPosition("BTC/USD", 25_000_000, 2, true);
// Uses $25 collateral for $50 position size

// 3. Close position when ready
perps.closePosition("BTC/USD");

Cross-Chain Deposit Flow

// On Sepolia: Deposit USDC to bridge to Avalanche
crossChainManager.depositAndSend(10_000_000); // $10 USDC

// On Avalanche: PoolManager immediately credits user for instant trading
// CCIP settlement happens in background via depositDirect()

Multi-Token Deposits on Avalanche

// Deposit AVAX (automatically converted to USDC)
poolManager.deposit{value: 1 ether}(address(0), 1 ether);

// Deposit LINK tokens (automatically converted to USDC)  
poolManager.deposit(LINK_ADDRESS, 10 * 1e18);

Key Features

• Leverage Trading: Up to 3x leverage on BTC/USD and ETH/USD
• Cross-Chain Deposits: Seamless USDC bridging from Ethereum with instant UX
• Automated Liquidations: Chainlink Automation with VRF fairness
• Real-Time Pricing: Chainlink price feeds with 8-decimal precision
• Risk Management: Position limits and maintenance margins
• Multi-Token Support: Accept AVAX, LINK, USDC deposits
• Fair Liquidations: VRF randomization prevents MEV exploitation

Development

Code Structure

contracts/
├── Perps.sol                     # Main trading engine
├── CrossChainManager.sol         # CCIP bridge (Sepolia)
├── PoolManager.sol               # Multi-token deposits (Avalanche)
├── PriceOracle.sol              # Chainlink price feeds
├── PerpsCalculations.sol        # Risk calculations
├── PerpsFeeManager.sol          # Fee management
├── VRFRandomizer.sol            # Chainlink VRF integration
├── VRFAutomation.sol            # VRF randomness refresh
├── TimeLiquidationAutomation.sol # Time-based automation
├── LogLiquidationAutomation.sol  # Event-based automation
└── PerpsStructs.sol             # Shared data structures

Project Links

1. Demo Video
2. Pooka Finance Contracts
3. Pooka Finance App
4. Live Application
5. User Documentation
6. AI Agent Backend

License

MIT License - see LICENSE file for details.