👋The Charisma Protocol

Learn about Charisma, the non-custodial DeFi protocol on the Stacks blockchain

Overview

The Charisma protocol is a non-custodial DeFi system built on the Stacks blockchain, leveraging Bitcoin's security. The protocol introduces innovative mechanics for yield generation and token interactions through a system of hold-to-earn rewards and multi-step trading strategies.

Core Protocol Components

Hold-to-Earn System

The protocol's primary yield mechanism is a non-custodial hold-to-earn system implemented through "engines". Key features include:

  • Token holders automatically generate energy based on their holding period

  • Calculations use integral calculus for accurate time-weighted rewards

  • Dynamic quality and incentive scores modify generation rates

  • Fully non-custodial - users retain control of their tokens

  • Multiple sample point options for different time periods

  • Retroactive calculation ensures fair rewards

Token System

The protocol utilizes several token types:

Charisma Token (CHA)

  • Primary protocol token

  • Can be wrapped/unwrapped with governance tokens

  • Implements SIP-010 fungible token standard

  • Features liquidity flow controls and red pill gating

Energy

  • Generated through hold-to-earn engines

  • Required for protocol interactions

  • Burned through the Fatigue system

  • Acts as "proof of participation"

Security Architecture

The protocol employs a multi-layered security system:

Dungeon Keeper

  • Central security and orchestration hub

  • Manages all token operations

  • Multi-owner authorization system

  • Operation limits and caps

  • Status effect modifications

  • Interaction verification

Status Effects System

  • Modifies token operations based on conditions

  • Applies protocol-wide effects

  • Handles NFT-based bonuses

  • Manages operation limits

Trading Mechanics

The protocol includes sophisticated trading components:

Charismatic Corgi

  • Automated arbitrage system

  • Executes multi-step trades

  • Energy-gated operations

  • Profit tracking per user

  • Auto-reinvestment features

Market Integration

  • Integration with UniswapV2-style markets

  • Dynamic price discovery

  • Multiple trading paths

  • Energy cost for trades

Protocol Interactions

Core Actions

  1. Hold-to-Earn

    • Users hold CHA tokens

    • Energy is generated based on holding time

    • Generation rate modified by token-specific factors

  2. Energy Usage

    • Energy required for protocol actions

    • Burned through Fatigue system

    • Variable burn rates for different actions

  3. Token Operations

    • Wrap/unwrap between CHA and governance tokens

    • Trading through integrated markets

    • Arbitrage opportunities

Interaction System

The protocol uses a flexible interaction system where actions are executed through:

  1. Dungeon Crawler

    • Primary user interface

    • Handles multiple interactions per transaction

    • Manages action sequencing

  2. Verified Interactions

    • Modular action contracts

    • Energy-gated operations

    • Standardized interface

Economic Model

Revenue Generation

  • Trading fees from integrated markets

  • Energy burn mechanisms

  • Protocol controlled operations

Value Capture

  • CHA token appreciation

  • Energy generation rights

  • Trading opportunities

Security Features

  1. Authorization Controls

    • Multi-owner system

    • Verified interaction whitelist

    • Operation limits

  2. Risk Management

    • Hard caps on operations

    • Energy gating

    • Status effect modifications

  3. Upgrade Path

    • Owner-controlled parameters

    • Modular design

    • Interaction versioning

Technical Implementation

Smart Contract Architecture

  • Modular contract system

  • Trait-based interfaces

  • Standardized interaction patterns

Key Contract Types

  1. Core Contracts

    • Token contracts

    • Security managers

    • Interaction handlers

  2. Peripheral Contracts

    • Trading interfaces

    • User interactions

    • Utility functions

Protocol Parameters

Global Settings

  • Energy generation rates

  • Operation limits

  • Fee structures

  • Minimum thresholds

Configurable Elements

  • Hold-to-earn calculations

  • Trading parameters

  • Energy burn rates

  • Security thresholds

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