ULayer: Stablecoin Infrastructure Blockchain

A High-Performance Infrastructure for Stablecoin Issuance, Cross-Chain Transfers, and AMM Exchanges

v1.0 - Technical Architecture

Current Stablecoin Infrastructure Challenges

Technical Challenges

  • High Transaction Costs:
    • Ethereum: $2-50 unpredictable fees
    • TRON: $1-2 transaction fees
  • Low Performance:
    • 3-15 minutes confirmation time
    • Limited throughput (15-2,000 TPS)
  • Chain Fragmentation:
    • Lack of interoperability
    • Wallet-chain incompatibilities

Business Challenges

  • Issuance Complexity:
    • High entry barriers for stablecoin creation
    • Complex multi-chain deployment
  • Liquidity Fragmentation:
    • Isolated liquidity pools
    • High cost of cross-chain transfers
  • Exchange Inefficiency:
    • High slippage in standard AMMs
    • Poor capital efficiency

ULayer: Comprehensive Solution

┌────────────────────────────────────────────────────────────┐ │ ULayer Platform │ └───────────────────────────┬────────────────────────────────┘ │ ┌─────────────────┬─────────┴────────────┬─────────────────┐ │ │ │ │ │ Stablecoin │ Cross-Chain │ StableSwap │ │ Issuance │ Transfer │ AMM │ │ Framework │ Protocol │ Exchange │ │ │ │ │ └─────────────────┴──────────────────────┴─────────────────┘

Core Features

  • Performance: 50,000+ TPS with 300ms confirmation
  • Cost-Efficiency: $0.001 fixed transaction fee
  • Gas-Free Transactions: Relayer network for sponsoring gas
  • Cross-Chain Compatibility: Support for all major blockchains

Business Value

  • Easy Stablecoin Issuance: Simplified creation and management
  • Seamless Cross-Chain Operations: Universal bridges and adapters
  • Capital Efficiency: 20x improvement over standard AMMs
  • Regulatory Compliance: Built-in KYC/AML infrastructure

Technical Architecture

Multi-Layer Design

┌───────────────────────────────────────────────────────────────┐ │ Core Layer (L1) │ │ - HotStuff BFT + PoS Consensus │ │ - 300ms Fast Confirmation / 1s Final Confirmation │ │ - Native Stablecoin Protocol │ └─────────────────────────────┬─────────────────────────────────┘ │ ┌─────────────────────────────┼─────────────────────────────────┐ │ │ │ │ ┌─────────────────┐ ┌─────┴─────┐ ┌───────────────────┐ │ │ │ Stablecoin │ │ Cross- │ │ StableSwap │ │ │ │ Factory │ │ Chain │ │ AMM │ │ │ └─────────────────┘ │ Bridge │ └───────────────────┘ │ │ └───────────┘ │ │ Application Layer │ └───────────────────────────────────────────────────────────────┘

System Parameters

Parameter Value Description
Validators 21 Expandable to 100
Block Time 100ms 10ms microblocks + 100ms macroblocks
TPS 50,000+ For standard stablecoin transfers
Fee $0.001 Fixed fee model
AMM Slippage ~0.02% For $1M stablecoin swap

Stablecoin Issuance Framework

┌──────────────────────────────────────────┐ │ Issuance Layer │ │ ┌──────────────┐ ┌──────────────────┐ │ │ │ Stablecoin │ │ Configuration │ │ │ │ Factory │ │ & Governance │ │ │ └──────────────┘ └──────────────────┘ │ └──────────────────────────────────────────┘ │ ┌──────────────────────────────────────────┐ │ Asset Layer │ │ ┌──────────────┐ ┌──────────────────┐ │ │ │ Collateral │ │ Proof-of- │ │ │ │ Management │ │ Reserves │ │ │ └──────────────┘ └──────────────────┘ │ └──────────────────────────────────────────┘

Key Components

Collateral Models

  • Overcollateralized: Traditional reserve backing
  • Algorithmic: Market-based stability mechanisms
  • Hybrid: Combined approach for optimal stability

Security Features

  • Multi-signature Governance
  • Time-locked Parameter Updates
  • Emergency Pause Mechanisms

StablecoinFactory Contract

function createStablecoin(
    string memory name,
    string memory symbol,
    address collateralManager,
    address treasury,
    uint256 initialSupply
) external returns (address) {
    // Deploy stablecoin contract
    address stablecoin = address(
        new ULayerStablecoin(
            name, symbol, msg.sender,
            collateralManager, treasury
        )
    );
    
    // Register metadata
    stablecoins[stablecoin] = StablecoinInfo({
        name: name,
        symbol: symbol,
        issuer: msg.sender,
        collateralType: collateralManager,
        creationTime: block.timestamp
    });
    
    // Mint initial supply if specified
    if (initialSupply > 0) {
        ULayerStablecoin(stablecoin).mint(
            treasury, initialSupply
        );
    }
    
    return stablecoin;
}

Cross-Chain Transfer Protocol

┌──────────────────────────────────────────────────────────┐ │ User Layer │ │ ┌──────────────────┐ ┌──────────────────┐ │ │ │ Wallets │ │ Applications │ │ │ └──────────────────┘ └──────────────────┘ │ └─────────────────────────────┬────────────────────────────┘ │ ┌─────────────────────────────┼────────────────────────────┐ │ │ │ │ Message Delivery Layer │ │ ┌──────────────────┐ ┌────┴─────────────┐ │ │ │ Validator │ │ Relayer │ │ │ │ Network │ │ Network │ │ │ └──────────────────┘ └──────────────────┘ │ │ │ └─────────────────────────────┬────────────────────────────┘ │ ┌─────────────────────────────┼────────────────────────────┐ │ │ │ │ Liquidity Layer │ │ ┌──────────────────┐ ┌────┴─────────────┐ │ │ │ Liquidity │ │ Rebalancing │ │ │ │ Pools │ │ System │ │ │ └──────────────────┘ └──────────────────┘ │ │ │ └───────────────────────────────────────────────────────────┘

Protocol Features

  • Universal Chain Support: ETH, BSC, TRON, Solana, etc.
  • Fast Transfers: 1-2 seconds finality across chains
  • Gas-Free Experience: Optional relayer-sponsored transactions
  • Liquidity Efficiency: Shared liquidity pools across chains
  • Security: Multi-signature verification with 21 validators

CrossChainBridge Contract

function initiateBridge(
    address stablecoin,
    uint256 amount,
    uint256 targetChain,
    address targetAddress
) external returns (bytes32) {
    // Generate unique bridge ID
    bytes32 bridgeId = keccak256(abi.encode(
        msg.sender, stablecoin, amount,
        block.chainid, targetChain,
        block.timestamp
    ));
    
    // Create bridge record
    bridgeRecords[bridgeId] = BridgeRecord({
        user: msg.sender,
        stablecoin: stablecoin,
        amount: amount,
        sourceChain: block.chainid,
        targetChain: targetChain,
        targetAddress: targetAddress,
        timestamp: block.timestamp,
        status: BridgeStatus.Initialized,
        fee: calculateFee(amount, targetChain)
    });
    
    // Lock or burn tokens
    if (isNative(stablecoin, block.chainid)) {
        IERC20(stablecoin).transferFrom(
            msg.sender, address(this), amount
        );
    } else {
        ULayerStablecoin(stablecoin).bridgeBurn(
            msg.sender, amount
        );
    }
    
    // Send cross-chain message
    sendMessage(bridgeId, targetChain);
    
    return bridgeId;
}

StableSwap AMM Exchange

Mathematical Foundation

Core invariant formula:

A · n^n · ∑xi + D = A · D · n^n + D^(n+1) / (n^n · ∏xi)

Where:

  • A: Amplification coefficient
  • n: Number of assets
  • xi: Balance of each asset
  • D: Invariant representing total value

Amplification Impact

A Value Curve Type Slippage
1-10 Close to constant product High
50-100 Medium curvature Medium
200-500 Close to constant sum Low
1000+ Almost linear Very low

Performance Advantages

Trade Size Uniswap v2 ULayer (A=200)
0.1% of pool ~0.2% ~0.0002%
1% of pool ~2% ~0.002%
5% of pool ~10% ~0.05%
10% of pool ~20% ~0.2%

StableSwapPool Exchange Function

function exchange(
    uint256 i,       // input token index
    uint256 j,       // output token index
    uint256 dx,      // input amount
    uint256 minDy   // min output amount
) external nonReentrant returns (uint256) {
    require(i != j, "Same token");
    
    // Transfer input token
    IERC20(coins[i]).transferFrom(
        msg.sender, address(this), dx
    );
    
    // Calculate output amount
    uint256 dy = _calculateSwap(i, j, dx);
    
    // Calculate fees
    uint256 dyFee = (dy * fee) / FEE_DENOMINATOR;
    uint256 dyAdminFee = (dyFee * adminFee) / 
                          FEE_DENOMINATOR;
    
    // Update pool state
    balances[i] += dx;
    balances[j] -= (dy - dyFee);
    
    // Verify output meets minimum
    require(dy - dyFee >= minDy, "Slippage limit");
    
    // Transfer output token
    IERC20(coins[j]).transfer(
        msg.sender, dy - dyFee
    );
    
    return dy - dyFee;
}

Gas-Free Transaction System

User --Signs Request--> Relayer --Executes TX--> Network --Returns Result--> User | v Takes Fee From Transaction

How It Works

  1. User Signs Request: Creates signed transaction request
  2. Relayer Network: Picks up and validates the signature
  3. Gas Sponsorship: Relayer pays gas fees
  4. Fee Recovery: Small portion of transaction output goes to relayer
  5. Result Delivery: Completed transaction returned to user

Benefits

  • No Wallet Balance Requirement: Use without native tokens
  • Improved UX: Single approval for multiple operations
  • Low Fees: Competitive relayer market keeps fees minimal
  • Cross-Chain Support: Works across all supported chains

GaslessRelaySystem Contract

// Relayer request structure
struct RelayRequest {
    address user;             // User address
    bytes signature;          // User signature
    uint256 nonce;            // Anti-replay nonce
    uint256 deadline;         // Expiration time
    address stablecoin;       // Token contract
    uint256 amount;           // Transfer amount
    uint256 targetChain;      // Target chain ID
    address targetAddress;    // Recipient address
    uint256 relayerFee;       // Relayer fee
}

// Submit relay request
function submitRelayRequest(
    RelayRequest calldata request,
    bytes calldata signature
) external onlyRelayer {
    // Validate request
    validateRelayRequest(request, signature);
    
    // Execute cross-chain operation
    bytes32 bridgeId = executeBridgeOperation(
        request.user,
        request.stablecoin,
        request.amount,
        request.targetChain,
        request.targetAddress
    );
    
    // Update relayer stats and user nonce
    updateRelayerStats(msg.sender, request.relayerFee);
    userNonces[request.user] = request.nonce + 1;
    
    emit RelayRequestProcessed(
        bridgeId, request.user, msg.sender, 
        request.relayerFee
    );
}

Security Architecture

Multi-Layer Security

  • Consensus Security:
    • HotStuff BFT consensus prevents tampering
    • 21-node validator network with 2/3 majority
  • Contract Security:
    • Formal verification of critical components
    • Multiple security audits
    • Bug bounty program
  • Network Security:
    • DDoS protection
    • TLS encryption
    • API access control
  • Data Security:
    • Encrypted storage
    • Least privilege principle
    • Secure backups

Risk Management System

type MultiChainRiskManager struct {
    // Liquidity Risk
    LiquidityRisk struct {
        MinReserveRatio   float64    // Min reserve rate 20%
        MaxUtilization    float64    // Max utilization 90%
        EmergencyReserve  *big.Int   // Emergency reserve
        LiquidityBuffer   *big.Int   // Liquidity buffer
    }
    
    // Technical Risk
    TechnicalRisk struct {
        ChainHealthMonitor *ChainHealthMonitor
        BridgeSecurityCheck *BridgeSecurityChecker
        SmartContractAudit  *ContractAuditSystem
        KeyManagementSystem *KMSSystem
    }
    
    // Market Risk
    MarketRisk struct {
        PriceOracle       *PriceOracleSystem
        SlippageProtection *SlippageProtector
        MEVProtection     *MEVProtection
        VolatilityHedging *VolatilityHedger
    }
    
    // Operational Risk
    OperationalRisk struct {
        MultisigGovernance *MultisigGovernance
        EmergencyPause     *EmergencyPauseSystem
        InsuranceFund      *InsuranceFund
        DisasterRecovery   *DisasterRecoveryPlan
    }
}

Emergency Response System

  • Emergency Pause: Critical vulnerabilities
  • Degraded Service: Partial system unavailability
  • Automatic Circuit Breakers: Risk thresholds
  • Recovery Procedures: Defined recovery steps

Integration & SDKs

SDK Support

  • Languages:
    • JavaScript/TypeScript
    • Python
    • Go
    • Java
    • Swift/Kotlin (Mobile)
  • Core Features:
    • Authentication & request signing
    • Stablecoin management
    • Cross-chain operations
    • AMM interactions
    • Gas-free transaction support

API Service

  • RESTful API for all platform functions
  • GraphQL for complex queries
  • WebSockets for real-time updates
  • Comprehensive documentation & examples

TypeScript SDK Example

// Initialize SDK
const uLayer = new ULayerSDK({
  apiKey: 'YOUR_API_KEY',
  network: 'mainnet'
});

// Create stablecoin
async function createStablecoin() {
  const result = await uLayer.stablecoin.create({
    name: 'My USD Stablecoin',
    symbol: 'MYUSD',
    collateralType: 'overcollateralized',
    collateralAsset: 'USDC',
    initialSupply: '1000000000000000000000000'
  });
  
  console.log(`Stablecoin created: ${result.address}`);
}

// Cross-chain transfer
async function bridgeStablecoin() {
  const result = await uLayer.bridge.transfer({
    sourceChain: 'ethereum',
    targetChain: 'bsc',
    token: '0x1234...5678',
    amount: '1000000000000000000',
    recipient: '0xabcd...ef01',
    gasless: true
  });
  
  console.log(`Bridge initiated: ${result.bridgeId}`);
  console.log(`Estimated completion: ${
    result.estimatedCompletionTime
  }`);
}

Development Roadmap

Phase Timeline Milestones Deliverables
Phase 1
Core Development
0-6 months - Core consensus module
- Basic stablecoin functions
- Testnet launch
- Core Layer MVP
- Developer documentation
- Security audit
Phase 2
Feature Expansion
6-12 months - StableSwap AMM
- Cross-chain bridge
- Gas-free transactions
- Beta mainnet
- Multi-chain adapters
- APIs and SDKs
Phase 3
Production Ready
12-18 months - Multi-chain liquidity pools
- Complete monitoring system
- Production deployment
- Official mainnet
- Issuer platform
- Compliance documentation
Phase 4
Expansion
18+ months - Performance optimization
- Advanced features
- Ecosystem expansion
- DeFi integrations
- Enterprise APIs
- Developer community
Development Strategy: Iterative development with 2-week sprints, prioritizing core functionality and technical validation. Complete CI/CD pipeline ensures code quality, with concurrent documentation and developer tool development.

ULayer: The Future of Stablecoin Infrastructure

Key Advantages

  • Performance: 50,000+ TPS with 300ms finality
  • Cost-Efficiency: $0.001 fixed transaction fee
  • Cross-Chain: Seamless operations across blockchains
  • Gas-Free: Transactions without gas requirements
  • Capital Efficiency: 20x improvement for stablecoin exchanges
  • Developer-Friendly: Comprehensive SDKs and APIs

Next Steps

  • Developer Program: Early access to testnet
  • Partnership Program: Integration with existing stablecoins
  • Issuer Program: Support for new stablecoin issuers
  • Technical Documentation: Comprehensive guides

Join the ULayer Ecosystem
Building the foundation for the next generation of stablecoin infrastructure
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