Integration Grants Application '26: Crucible
Application Introduction
Name of the project: Crucible
Problem statement and proposed solution:
The Conflux DeFi ecosystem currently lacks one of the most fundamental primitives in decentralized finance: a native, overcollateralized stablecoin. Users on Conflux eSpace have no way to mint a decentralized USD-pegged stablecoin against their CFX holdings. This creates several downstream problems:
- CFX holders who want stable-value exposure must bridge to other chains or rely entirely on centralized stablecoin issuers.
- The DeFi ecosystem cannot develop meaningful lending, borrowing, or yield infrastructure without a native stable asset to anchor against.
- DEX liquidity pools lack a decentralized stablecoin pairing, limiting trading pair diversity and capital efficiency.
- AxCNH (Conflux’s offshore RMB stablecoin) has no decentralized counterpart on the USD side, leaving a gap in the stablecoin toolkit.
Crucible solves this by deploying a CDP (Collateralized Debt Position) stablecoin protocol on Conflux eSpace. Users deposit CFX (and eventually other whitelisted collateral assets) into vaults, and mint fxUSD, a USD-pegged stablecoin, against that collateral. The protocol enforces overcollateralization (minimum 150% collateral ratio), and positions that fall below the liquidation threshold are liquidated by third-party liquidators who earn a discount on seized collateral.
This is the same proven model that underpins MakerDAO (DAI), Liquity (LUSD), and other battle-tested CDP protocols, adapted specifically for the Conflux ecosystem with AxCNH integration as a differentiator.
Alignment with the Conflux Network:
Crucible directly addresses three of the four stated goals of the Conflux Grants program:
- Creating an ecosystem that is diverse and attracts liquidity: A native stablecoin is a liquidity magnet. Every DeFi user needs stable-value assets, and every DEX needs stablecoin pairs. fxUSD would become a core trading pair on Swappi and any future Conflux DEXs.
- Increasing liveliness of the Conflux Network: CDP protocols generate continuous on-chain activity: vault openings, collateral deposits, stablecoin minting/burning, liquidations, and redemptions. Each user interaction is a transaction.
- Building out the Conflux technology stack: The protocol’s open-source smart contracts (vault management, liquidation engine, price oracle integration) become reusable infrastructure for other DeFi builders on Conflux.
Additionally, Crucible will integrate AxCNH as a settlement and trading pair. A fxUSD/AxCNH pool would create the first decentralized USD/CNH forex pair on Conflux, which aligns with Conflux’s strategic positioning as the compliant blockchain bridging Chinese and global markets.
Benefit to the Conflux Ecosystem:
- TVL growth: Every dollar of fxUSD minted requires at least $1.50 in CFX locked as collateral, directly increasing on-chain TVL. A modest $500K in minted stablecoins translates to $750K+ in locked collateral.
- Developer benefit: Open-source Solidity contracts (MIT licensed) that other teams can fork, extend, or integrate. Any lending protocol deploying on Conflux (such as Nysa) could list fxUSD as a supported asset.
- Economic benefit: Minting fees (one-time), stability fees (ongoing, accrued on outstanding debt), and liquidation penalties all generate protocol revenue and on-chain transaction volume.
- User retention: Users who lock CFX in vaults have a financial reason to stay engaged with the Conflux ecosystem rather than bridging assets elsewhere.
Competitive edge:
No overcollateralized stablecoin protocol currently exists on Conflux. Crucible would be first-to-market with a proven DeFi primitive. The protocol is being built by a developer who has already designed, architected, and is actively building a CDP stablecoin protocol (Rumi Protocol, minting icUSD) on Internet Computer Protocol. The core protocol design (vault mechanics, liquidation logic, collateral ratio management, oracle integration, risk parameters) has already been solved. This is not a theoretical whitepaper; it is a deployment of working knowledge to a new chain.
Links:
- Rumi Protocol (ICP, existing CDP project): https://app.rumiprotocol.com
- Rumi Protocol X: https://x.com/rumilabsxyz
- Personal X: https://x.com/robvector
- GitHub: https://github.com/RobRipley
- Personal website: https://robripley.com
- LinkedIn: https://www.linkedin.com/in/robert-ripley-junior/
- Crucible: crucible.money (to be launched during Milestone 1)
Conflux eSpace grant recipient wallet address: 0x3E5DaBD06F3050DEBb6DbDE9d9471Ce60adaE2D9
Are you an incorporated startup? Yes. Crucible is developed by Rumi Labs LLC, a Wyoming LLC (filed January 2025, EIN 33-2759974). Robert Ripley is the sole member. Rumi Labs also develops Rumi Protocol (CDP stablecoin on ICP).
Technical Introduction
Functional goals:
Crucible is a minimal, secure CDP stablecoin protocol with the following functional goals:
- Allow users to open vaults by depositing CFX as collateral
- Allow users to mint fxUSD (ERC-20, USD-pegged) against their collateral at a minimum collateral ratio of 150%
- Enable users to repay debt and withdraw collateral at any time
- Liquidate undercollateralized positions (below 110-120% CR depending on final risk parameters) with a liquidation penalty that incentivizes third-party liquidators
- Provide a redemption mechanism allowing fxUSD holders to redeem stablecoins for underlying collateral at face value, maintaining the peg
- Integrate with a price oracle (Pyth Network or Witnet, both available on Conflux eSpace) for CFX/USD price feeds
- Deploy a fxUSD/CFX and fxUSD/AxCNH liquidity pool on Swappi
Existing solutions:
There are no existing CDP or stablecoin-minting protocols on Conflux eSpace. On other EVM chains, well-known implementations include:
- MakerDAO (Ethereum): Multi-collateral CDP protocol, $8B+ DAI minted. Complex governance structure.
- Liquity (Ethereum): Governance-minimized, immutable CDP protocol. Single collateral (ETH). Elegant liquidation mechanism using a Stability Pool.
- Prisma Finance (Ethereum): CDP backed by liquid staking tokens.
Crucible draws most heavily from Liquity’s design philosophy: governance-minimized, simple, and focused on a clean liquidation mechanism. The Liquity V2 model (user-set interest rates, multiple collateral types) is being evaluated as the target architecture.
Feasibility: High. The protocol design is well-understood (CDP stablecoins have existed since 2017), the developer has direct experience building one, and Conflux eSpace’s EVM compatibility means standard Solidity tooling (Hardhat, OpenZeppelin) works out of the box.
Purpose of the system: To provide Conflux with its first native decentralized stablecoin, enabling CFX holders to access stable-value liquidity without leaving the ecosystem.
Scope of the system:
In scope (grant period):
- Core CDP smart contracts (Vault Manager, Stablecoin Token, Price Feed integration, Liquidation Engine, Stability Pool)
- Basic frontend for vault management (open, deposit, mint, repay, withdraw)
- Liquidity pool deployment on Swappi (fxUSD/CFX, fxUSD/AxCNH)
- Security audit by independent firm
- Mainnet deployment on Conflux eSpace
Out of scope (future roadmap):
- Multi-collateral support (bridged WETH, WBTC)
- Governance token
- Advanced frontend analytics and portfolio tracking
- Cross-chain deployments
Objectives and success criteria:
| Objective | Success Criteria |
|---|---|
| Testnet deployment | All core contracts deployed and verified on Conflux eSpace testnet, 100+ test transactions |
| Security audit | Professional audit completed with 0 critical/high vulnerabilities remaining |
| Mainnet launch | Contracts deployed and verified on Conflux eSpace mainnet |
| Initial adoption | $100K+ TVL within 60 days of mainnet launch |
| Liquidity | Active fxUSD/CFX pool on Swappi with $50K+ liquidity |
| AxCNH integration | Live fxUSD/AxCNH trading pair |
Definitions:
- CDP: Collateralized Debt Position. A smart contract vault where users lock collateral to mint stablecoins.
- CR: Collateral Ratio. The value of collateral divided by outstanding debt. Must exceed minimum threshold.
- Liquidation: Forced closure of a vault whose CR falls below the liquidation threshold.
- Stability Pool: A pool of fxUSD deposited by users that absorbs liquidated debt in exchange for discounted collateral.
- Redemption: The mechanism by which any fxUSD holder can exchange stablecoins for underlying collateral at face value, providing a hard peg floor.
Technical Proposal
Functional overview:
The protocol consists of five core smart contracts:
-
VaultManager.sol - The central contract managing all user vaults. Handles vault creation, collateral deposits/withdrawals, stablecoin minting/repayment, and tracks each vault’s collateral ratio. Enforces minimum collateral ratio on all operations.
-
StablecoinToken.sol - ERC-20 token contract for fxUSD. Minting is restricted to VaultManager (on debt issuance) and burning occurs on repayment or redemption. Standard ERC-20 interface for compatibility with all Conflux eSpace DEXs and protocols.
-
PriceFeed.sol - Oracle integration contract that fetches CFX/USD price data. Primary oracle: Pyth Network (already deployed on Conflux eSpace). Fallback: Witnet or TWAP from Swappi CFX/USDT pool. Includes staleness checks and deviation thresholds.
-
LiquidationEngine.sol - Manages the liquidation process. When a vault’s CR drops below the liquidation threshold, any user can trigger liquidation. The Stability Pool absorbs the debt, and liquidators receive the vault’s collateral at a discount (typically 5-10%). If the Stability Pool is empty, redistribution of debt and collateral occurs across remaining vaults.
-
StabilityPool.sol - Users deposit fxUSD into the Stability Pool to earn liquidation gains. When a liquidation occurs, the pool’s fxUSD is burned to cover the liquidated vault’s debt, and the pool depositors receive the liquidated collateral proportionally. This creates a natural incentive loop: depositors earn discounted CFX, and the protocol maintains solvency.
Additional components:
- RedemptionModule (integrated into VaultManager): Allows any fxUSD holder to redeem stablecoins for CFX at the current oracle price, minus a redemption fee. Redemptions close the lowest-CR vaults first, creating a hard price floor for the stablecoin. This is the primary peg maintenance mechanism.
- Frontend: React + Wagmi/Viem for wallet connection (Fluent Wallet support), vault dashboard, Stability Pool interface, and protocol analytics.
Security model:
- All contracts use OpenZeppelin libraries (ReentrancyGuard, Pausable, AccessControl)
- Emergency pause functionality controlled by deployer multisig (to be transitioned to governance or burned post-stability period)
- Professional security audit before mainnet deployment
- Immutable core contracts (no proxy upgradability on vault logic) to minimize trust assumptions
Legal/licensing:
- All smart contracts open-sourced under MIT License
- No token sale, no securities issuance
- fxUSD is a decentralized stablecoin minted by users against their own collateral; the protocol does not custody funds
- No KYC required for protocol usage (permissionless)
Non-functional overview:
- Usability: Clean, minimal frontend focused on the core user flow: deposit collateral, mint stablecoins, manage vault. No unnecessary complexity.
- Reliability: Immutable smart contracts (no admin keys on core vault logic post-launch), oracle failsafes with fallback price feeds, circuit breakers for extreme market conditions.
- Performance: All smart contracts optimized for gas efficiency on Conflux eSpace. Target <100K gas per vault operation. Conflux’s low gas fees (~$0.01/tx) make the protocol accessible to small positions.
- User interface: Responsive web app (Next.js), mobile-friendly, Fluent Wallet integration with fallback to MetaMask/WalletConnect.
Total Budget
Grant Size Requested: $27,000 USD
Justification and breakdown:
| Category | Amount | Description |
|---|---|---|
| Smart contract development | $10,000 | Solidity development of core CDP contracts (VaultManager, StablecoinToken, PriceFeed, LiquidationEngine, StabilityPool). Includes Solidity contractor support for audit-readiness and gas optimization. |
| Security audit | $8,000 | Professional smart contract audit from a recognized firm (PeckShield, Hashlock, or comparable). This is non-negotiable for a protocol that holds user funds. |
| Frontend development | $3,000 | React frontend for vault management, Stability Pool, and protocol dashboard. Fluent Wallet integration. |
| Infrastructure | $2,000 | Hosting (Vercel/AWS), RPC node access, oracle subscription fees, domain, testnet deployment costs. |
| Liquidity bootstrapping | $2,500 | Initial liquidity for fxUSD/CFX and fxUSD/AxCNH pools on Swappi to enable trading from day one. |
| Marketing and documentation | $1,500 | Technical documentation, user guides, launch announcement, community engagement (Twitter Spaces, Conflux Discord/Telegram). |
| Total | $27,000 |
The budget is lean by design. Core protocol development leverages existing CDP architecture knowledge from Rumi Protocol (ICP), significantly reducing engineering time. The largest single expense is the security audit, which is the minimum responsible standard for any protocol holding user collateral.
Development Roadmap
Milestone 1: Testnet Deployment (Weeks 1-6)
Funding requested: $10,000
Deliverables:
- All five core smart contracts (VaultManager, StablecoinToken, PriceFeed, LiquidationEngine, StabilityPool) deployed and verified on Conflux eSpace testnet
- Contracts verified on ConfluxScan with source code
- 100+ test transactions demonstrating: vault creation, collateral deposit, stablecoin minting, repayment, withdrawal, liquidation, Stability Pool deposit/withdrawal, and redemption
- Unit test suite with >90% code coverage (Hardhat + Chai)
- Basic frontend deployed (vault management, Stability Pool interface) connected to testnet
- GitHub repository public with MIT license
- Technical documentation (architecture overview, contract specifications, risk parameters)
Timeline: 6 weeks from grant approval
Milestone 2: Security Audit and Beta (Weeks 7-10)
Funding requested: $10,000
Deliverables:
- Professional security audit completed by recognized firm
- All critical and high-severity findings remediated
- Audit report published publicly
- Beta testing period with 20+ community testers on testnet
- Frontend refined based on beta feedback
- Oracle integration stress-tested (price feed reliability, staleness handling, fallback mechanism)
- Gas optimization pass (target <100K gas per core operation)
Timeline: 4 weeks
Milestone 3: Mainnet Launch and AxCNH Integration (Weeks 11-14)
Funding requested: $5,000
Deliverables:
- All contracts deployed and verified on Conflux eSpace mainnet
- Frontend live at crucible.money
- fxUSD/CFX liquidity pool live on Swappi
- fxUSD/AxCNH liquidity pool live on Swappi
- Launch announcement and community campaign
- User documentation and FAQ published
- Public grant progress report posted to forum
Timeline: 4 weeks
Total timeline: 14 weeks (approximately 3.5 months) from grant approval to mainnet.
Team
Robert Ripley - Founder and Protocol Designer
- Role: Protocol architecture, smart contract development, frontend, project management. Solidity contractor management for audit preparation and optimization.
- Relevant experience: DeFi analyst and independent DeFi consultant since 2012. Currently designing and building Rumi Protocol, a CDP stablecoin protocol minting icUSD on Internet Computer Protocol (Rust/Motoko). Deep domain knowledge of CDP mechanics including vault management, liquidation engines, oracle integration, collateral risk parameters, and peg stability mechanisms. Working knowledge of Solidity, with primary experience in Rust and Motoko. Professional background includes DeFi instruction at two crypto education companies and independent consulting for clients deploying capital in DeFi.
- X (personal): https://x.com/robvector
- X (Rumi Protocol): https://x.com/rumilabsxyz
- Rumi Protocol (live): https://app.rumiprotocol.com
- Website: https://robripley.com
- GitHub: https://github.com/RobRipley
- LinkedIn: https://www.linkedin.com/in/robert-ripley-junior/
Contractor Support:
- Solidity auditor/contractor (to be engaged): Code review, gas optimization, and audit preparation for core contracts. Budget allocated from smart contract development line item.
- Security audit firm (to be engaged): Professional audit of all deployed contracts. Specific firm to be confirmed during Milestone 1 (evaluating PeckShield, Hashlock, and others).
Terms of Use
I agree to all of the following terms of use in applying to a Conflux Ecosystem Grant:
- I have read and understood the Conflux Grants Ecosystem Overview
- I have read about and understood that the Conflux Technical Grants are subject to a No-Sale rule
- I agree to provide KYC information to the Conflux Foundation for the sake of overall ecosystem security
- I understand that I will be required to follow public grant reporting requirements