Escrow DApp with Aave Yield Generation

Authors

• @thecil - Carlos Zambrano
• @dadogg80 - Ivo Garofalo

About This Project

This full-stack decentralized application was developed as part of the Alchemy University Ethereum Developer Bootcamp. It implements a smart contract escrow system with a modern web interface, enhanced by Aave's yield-generating capabilities to earn interest on funds while in escrow.

Project Overview

The Escrow DApp allows users to:

• Create secure escrow transactions with customizable timelock periods
• Generate yield on locked funds through Aave lending pools
• Approve fund releases after the timelock expires
• Cancel escrow transactions (initiated by the creator)
• Initiate and resolve disputes between parties
• Track transaction status and generated yield

Project Structure

This project consists of two main components:

1. Smart Contracts (/solidity)

• Solidity contracts for the escrow system with Aave integration
• Testing suite using Hardhat and Viem
• Deployment scripts using Hardhat Ignition

2. Frontend Application (/frontend)

• Next.js application with Tailwind CSS and shadcn/ui components
• Web3 integrations via RainbowKit, Wagmi, and Viem
• User interface for interacting with the smart contracts

Live Demo

The application is deployed on Sepolia testnet:

• Frontend: https://thecil-escrow-dapp.vercel.app/
• Smart Contract: 0x665dd99C20A84acD35D6108f911e64cc36bc5102

Supported Tokens

The application supports the following tokens on Aave v3 (Sepolia):

• DAI
• LINK
• USDC
• WBTC
• WETH
• USDT
• AAVE

Technical Highlights

• Smart Contract Security: Implemented best practices including reentrancy guards, access controls, and event emissions
• Yield Generation: Integration with Aave v3 protocol for generating yield on locked funds
• Dispute Resolution: Built-in mechanisms for handling and resolving disputes
• Modern UI/UX: Responsive design with animations and intuitive user flows
• Web3 Integration: Seamless wallet connection and transaction handling

Installation and Setup

Prerequisites

• Node.js (v18 or higher)
• npm or yarn
• MetaMask or another Web3 wallet

Smart Contracts

1. Navigate to the solidity directory:

   cd solidity

2. Install dependencies:

   npm install

3. Run tests:

   npx hardhat test

4. Deploy contracts (optional, already deployed on Sepolia):

   npx hardhat ignition deploy ignition/modules/Escrow.ts --network sepolia --deployment-id sepolia-deployment

Frontend

1. Navigate to the frontend directory:

   cd frontend

2. Install dependencies:

   npm install

3. Create a .env.local file with the following variables:

   NEXT_PUBLIC_WALLETCONNECT_ID=your_walletconnect_project_id
   NEXT_PUBLIC_ALCHEMY_RPC=your_alchemy_api_key
   

4. Run the development server:

   npm run dev

5. Open http://localhost:3000 in your browser

Development Workflow

1. Make changes to smart contracts in the solidity/contracts directory
2. Test your changes with npx hardhat test
3. Update the frontend to integrate with your contract changes
4. Test the full application flow locally

Alchemy University Project

This project was created as the final assignment for the Ethereum Developer Bootcamp at Alchemy University. It demonstrates practical knowledge of:

• Solidity smart contract development
• DeFi protocol integration (Aave)
• Testing and deployment of smart contracts
• Building modern frontends for Web3 applications
• Managing wallet connections and transactions

Documentation

• Smart Contract Documentation
• Frontend Documentation

Future Enhancements

• Multi-signature escrow transactions
• Integration with additional DeFi protocols
• Mobile application
• Support for additional networks

License

MIT

Acknowledgements

• Alchemy University for the education and inspiration
• Aave for their lending protocol
• Ethers.js and Viem for Ethereum interactions
• Next.js for the frontend framework
• RainbowKit for wallet connections