Futures on Chain: A Secure and Confidential On-Chain Futures Trading Platform

This project introduces an innovative on-chain futures trading solution built on the Oasis Sapphire blockchain and using ROFL (Runtime OffChain Logic). This combination creates a secure, confidential, and tamper-proof trading environment. Traders can engage in futures contracts for a custom ERC-20 token, which dynamically mirrors a real-world currency like ETH. Through real-time price updates, a machine-learning-powered trading bot, and privacy-preserving execution, this platform enables reliable trading experiences, balancing both data security and transparency.

Video explaination: https://youtu.be/nJHYSz8WUD0

System Design

Key Features

1. On-Chain Futures Trading

• Capability: Users can execute futures contracts on-chain for a custom ERC-20 token, pegged to a real-world currency.
• Transparency: The platform handles gains and losses by adjusting the trader's balance, enabling transparent and auditable on-chain transactions.

2. Simulated Price Fluctuations with Tamper-Proof Oracle Integration

• External Price Linkage: The ERC-20 token's value reflects live market prices through ROFL, simulating real-time conditions.
• Tamper-Resistance: ROFL ensures securely fetched and unmanipulated price updates, empowering traders to make informed futures decisions with trustworthy data.

3. AI-Powered Trading Bot with LSTM Model for Market Predictions

• Predictive Modeling: A trading bot powered by an LSTM (Long Short-Term Memory) model analyzes historical data and suggests “Buy,” “Strongly Buy,” “Sell,” or “Strongly Sell” actions.
• Data-Driven Insights: This recommendation engine, combined with ROFL's trusted data, provides strategic market insights for traders.

4. Automated Profit and Loss Management

• Profit Management: In profitable trades, the platform mints new tokens for payout, allowing traders to realize their gains instantly.
• Loss Management: For losses, the platform deducts the trader's posted collateral, ensuring fair trade handling and funds availability.

5. Privacy-Preserving Execution with Trusted Execution Environments (TEEs)

• Confidentiality: Using Oasis’s Sapphire blockchain and TEEs, trade activities remain private while ensuring on-chain verification.
• Security and Transparency: TEEs allow secure, auditable trade execution without compromising trader data confidentiality.

6. Trade History and Performance Tracking

• Comprehensive Record Keeping: Traders can access transaction history and performance metrics directly through their wallets.
• Immutable Storage: On-chain storage of trade records ensures data reliability and helps traders optimize strategies over time.

Why ROFL?

ROFL is essential to the platform’s success due to its tamper-resistant price data capabilities:

• Data Integrity: Ensures price data authenticity, guarding against manipulation and fraud in decentralized environments.
• AI Integration: Supports the LSTM-based trading bot, providing reliable price trend predictions based on secure data feeds, essential for a trustworthy trading experience.

Why Oasis Sapphire?

Oasis Sapphire offers privacy and scalability ideal for a futures trading platform:

• Privacy: Trusted Execution Environments (TEEs) on Sapphire keep sensitive trading data confidential.
• Scalability: Low latency and high transaction handling support efficient trading, even under heavy load.
• Reliability: Sapphire’s security ensures that the platform remains robust, making it an ideal choice for this privacy-focused, on-chain trading solution.

Local Setup

This guide provides a step-by-step setup procedure to deploy and test a Futures dApp on the Oasis Sapphire local network using ROFL. Note: SGX-related requirements are excluded for this local testing setup.

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Step 1: Start the Localnet with ROFL

1. Ensure Prerequisites: Complete all ROFL prerequisites except for SGX-related ones.
2. Build the Oracle: Navigate to rofl-oracle/ and build the oracle:

 oasis rofl build sgx --mode unsafe

If the build fails, try updating Cargo:

 cargo update

3. Start the Sapphire Localnet: From the base git directory, run the following command to launch the Sapphire local network with ROFL:

 sudo docker run -it -p8545:8545 -p8546:8546 -v ./rofl-oracle:/rofls ghcr.io/oasisprotocol/sapphire-localnet

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Step 2: Deploy the Contract and Obtain Test Currency

4. Navigate to the rofl-oracle Directory: In a new terminal, move to the oracle directory to deploy the updated Futures contract:

 cd rofl-oracle/oracle

5. Install Dependencies: Run the following to install required packages:

 npm install

6. Compile the ROFL Contract:

 npx hardhat compile

7. Deploy the Futures Contract: Set up your private key and deploy the Futures contract on the Sapphire localnet:

 export PRIVATE_KEY=0xac0974bec39a17e36ba4a6b4d238ff944bacb478cbed5efcae784d7bf4f2ff80
 npx hardhat deploy rofl1qqn9xndja7e2pnxhttktmecvwzz0yqwxsquqyxdf --network sapphire-localnet

8. Transfer Test Currency: Fund your MetaMask account with test native currency and ERC-20 tokens:

 npx hardhat transfer-native-token --account <your_metamask_testing_account> --amount 100
 npx hardhat mint --account <your_metamask_testing_account>

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Step 3: Deploy and Interact with the Futures dApp

9. Start the Client: From the base directory, navigate to the client directory and start the app:

 npm run dev

Open the app in your browser at the localhost URL provided.

10. Configure MetaMask:
    • Add the Sapphire local testnet using the Add Network button on the upper right corner.
    • Connect your MetaMask wallet by selecting Connect.

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With these steps, you’re ready to interact with your Futures on Chain dApp on the Oasis Sapphire local network!