JCollateral Smart Contracts

Project Overview

This repository contains the smart contracts for JCollateral, a decentralized collateral management and lending protocol.
The contracts define the core on-chain logic for collateral deposits, borrowing against collateral, managing debt positions, and handling liquidations in a decentralized manner.

These contracts are written in Solidity and developed using Foundry, a fast and modular toolkit for Ethereum application development.

• Live Product: JCollateral
• Frontend using Nextjs: JCollateral Frontend

Protocol Summary

JCollateral enables users to:

• Deposit supported collateral assets
• Borrow against deposited collateral
• Repay borrowed assets to unlock collateral
• View and manage positions on-chain
• Enable automated or incentive-based liquidation for under-collateralized positions

This repository includes all protocol logic required to enforce safe, composable, and permissionless lending operations.

Contracts Description

Jcol.sol

Role: Core token and system state contract

Jcol.sol acts as the central contract of the protocol. It is responsible for:

• Managing the protocol’s base token logic
• Tracking balances and internal accounting
• Acting as a shared dependency for lending and exchange operations
• Serving as the primary contract referenced by other modules

This contract provides the foundational state that other contracts rely on to execute lending and exchange logic safely.

Lending.sol

Role: Collateralized lending and borrowing engine

Lending.sol implements the core collateralized lending logic of JCollateral. Its responsibilities include:

• Accepting collateral deposits (e.g. ETH)
• Allowing users to borrow against deposited collateral
• Enforcing collateralization rules
• Handling repayment flows
• Tracking user debt positions

This contract ensures users remain sufficiently collateralized and prevents unsafe borrowing behavior.

JcolDEX.sol

Role: Internal DEX / swap mechanism (testing & demo)

JcolDEX.sol provides a simple decentralized exchange mechanism used within the JCollateral ecosystem. It is primarily intended for:

• Swapping between protocol assets
• Simulating market activity
• Supporting testing and frontend demonstrations

This contract is not designed to replace a production-grade AMM, but rather to support local liquidity flows within the protocol.

MovePrice.sol

Role: Price movement and oracle simulation

MovePrice.sol is used to manually or programmatically adjust prices within the system. Its primary purpose is:

• Simulating market price changes
• Testing liquidation scenarios
• Demonstrating how price movements affect collateral ratios

This contract is especially useful for development, testing, and educational demonstrations where external oracle dependencies are intentionally avoided.

Protocol Flow Summary

1. Users deposit collateral through Lending.sol
2. Borrowing power is calculated based on system pricing
3. Prices can be adjusted using MovePrice.sol
4. Assets can be swapped internally using JcolDEX.sol
5. Repayments and collateral withdrawals are enforced by lending rules

Technology Stack

• Language: Solidity ^0.8.x
• Development Framework: Foundry
• Testing: Forge
• Deployment: Forge scripts
• Network: ETH Sepolia

Security Notes

• This project is not audited
• Intended for testing, learning, and demonstration
• Do not deploy to mainnet without a full audit
• Price logic is intentionally simplified

Author

Jason Tong

• Product: JCollateral
• GitHub: JasonTongg.
• Linkedin: Jason Tong.