System Overview
Executive Summary
Wafra is a fiat-to-fiat yield optimization platform that bridges traditional finance with DeFi through a sophisticated monorepo architecture. The system abstracts away cryptocurrency complexity while delivering 4% to 12% APY through professionally managed yield strategies.
Technology Stack
Wafra uses a modern, type-safe technology stack optimized for performance and security. For comprehensive technology details including infrastructure and deployment, see Technology Stack.
System Components
Authentication & Security Layer
Key Features:
- 2FA Authentication: Traditional login + WebAuthn passkeys
- Multi-Device Management: Seamless device approval workflow
- Session Security: 5 day JWT expiration with automatic refresh
Payment Provider Integration
Provider Capabilities:
- Onramp: Global coverage, traditional KYC, bidirectional (onramp/offramp)
- DTR: Virtual bank account, global coverage via remittance, traditional KYC, bidirectional (onramp/offramp)
- Quote Optimization: Real-time rate comparison and optimal routing
Wallet & Transaction System
Security Benefits:
- Multisig Security: We counter sign the users transactions
- Recovery Mechanism: Backup key for device loss scenarios
- Audit Trail: Complete on-chain transaction history
Smart Contract Architecture
Core Features:
- Scaled Balance System: Automatic yield accrual with low gas costs
- Strategy Diversification: Risk-weighted allocation across protocols
- Upgradeable Architecture: UUPS proxies for safe evolution
- Fee Collection: 2% APY management fee with referral program
Real-Time Monitoring System
Monitoring Capabilities:
- Event Processing: Comprehensive blockchain event handling
- Gas Analytics: ETH/USD cost tracking and optimization
Data Flow Architecture
Deposit Flow
- User Initiates Deposit: User initiates deposit through mobile app
- Quote Request: App requests quote from server
- Best Quote: Server gets best quote from available providers
- Payment Processing: User confirms and payment is processed
- Compliance Checks: Provider performs compliance checks
- Funds Transfer: Funds are sent to Safe wallet
- Deposit: Funds are deposited to the Fund contract
- Token Minting: Smart contract mints WST tokens
- Balance Update: Real-time balance update to user
Yield Accrual Flow
- Yield Generation: DeFi strategies generate yields
- Profit Harvesting: Smart contracts harvest profits
- Index Update: Liquidity index is updated
- Rate Increase: WST to USDC exchange rate increases
- Metrics Recording: Performance metrics are recorded
- Balance Update: User balance is updated instantly
- Strategy Rebalancing: Funds are reallocated frequently
Withdrawal Flow
- Withdrawal Request: User requests withdrawal
- Request Validation: Server validates the request
- Token Burning: WST tokens are burned
- Amount Calculation: USDC amount is calculated
- Strategy Withdrawal: Funds are withdrawn from strategies
- Wallet Release: USDC is released from Safe wallet
- Currency Conversion: USDC is converted to USD
- Bank Transfer: Funds are transferred to user’s bank
Performance Characteristics
Scalability Metrics
Current Performance:
- API Response Time: Less than 100ms average
- Transaction Throughput: Over 1000 TPS via Base L2
- Real-time Latency: Less than 50ms notification delivery
- Database Queries: Optimized with proper indexing
Reliability Features
High Availability:
- Redundancy: Multiple RPC providers, database replicas
- Monitoring: Logging, TODO alerting
- Recovery: TODO
- Graceful Degradation: Fallback mechanisms for service failures
Integration Points
External Dependencies
Payment Providers:
- DTR: SIWE authentication, Sumsub KYC integration
- Onramp: Traditional payment processing, global coverage
DeFi Protocols:
- Aave V3: Lending protocol on Base
- Morpho Blue: P2P lending optimization
- Pendle Finance: Yield trading and tokenization
Blockchain Integrations
Base Network:
- Smart Contracts: USDC, Gnosis Safe, yield strategies
- Event Monitoring: Real-time transaction and balance tracking
- Gas Optimization: Dynamic fee management and estimation
Future Architecture Considerations
Scalability Enhancements
Planned Improvements:
- Multi-Chain Support: Ethereum, Arbitrum, Polygon integration
- Advanced Strategies: Additional DeFi protocol integrations
- Performance Optimization: Caching layers, database optimization
- Global Expansion: Multi-region deployment architecture
Feature Roadmap
Technical Evolution:
- AI-Driven Allocation: Machine learning for strategy optimization
- Cross-Chain Bridges: Seamless asset movement between networks
- Governance Integration: Decentralized parameter management
- Mobile-First Features: Enhanced mobile experience and native integrations
This system architecture provides a robust, secure, and scalable foundation for bridging traditional finance with DeFi yield optimization while maintaining an exceptional user experience.