ZakoKen (雜魚券)

A Dynamic Fundraising Stablecoin Protocol for Open-Source Projects

ZakoKen combines LayerZero's Omnichain Fungible Token (OFT) standard with Uniswap v4 hooks to create a dual-liquidity mechanism that stabilizes token prices while maximizing project treasury value through controlled arbitrage.

🏆 ETHGlobal Buenos Aires Hackathon Project

• 🔗 LayerZero: Cross-chain token with compose messages
• 🦄 Uniswap Foundation: Dynamic fee hooks for stable-asset AMM
• 🔵 Circle (Optional): Native USDC integration on Arc

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🎯 Quick Links

• Hackathon Guide: docs/zakoken_hackathon_guide.md ⚡ START HERE!
  • Quick start checklist (15 min)
  • Complete 18-hour execution plan
  • Technical specifications
  • Submission requirements
• Architecture: docs/zakoken_architecture_doc.md
• Development: docs/zakoken_development_doc.md
• Deployment: docs/zakoken_deployment_doc.md

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💡 The Problem

Traditional fundraising tokens suffer from:

• Pump-and-dump schemes harming late participants
• Unfair token concentration benefiting early investors
• Lack of price stability in secondary markets
• Project treasury depletion without sustainable value capture

✨ The Solution

ZakoKen implements a dual-liquidity mechanism:

1. Fixed Pool: Project-controlled 1:1 USDC redemption (guaranteed, 0% fee)
2. Uniswap v4 Pool: Market-driven dynamic pricing (public, dynamic fee)
3. Project-as-Arbitrageur: Treasury captures profit from price differentials
4. Cross-Chain: LayerZero OFT enables omnichain accessibility

Key Innovation: Compose Messages for Transparency

Every token mint/burn attaches off-chain transaction metadata via LayerZero compose messages:

struct ComposeMsg {
    bytes32 transactionHash;    // Off-chain tx identifier
    uint256 timestamp;          // Transaction time
    uint256 amount;             // Minted/burned amount
    address recipient;          // Token recipient
    bytes32 projectId;          // Project ID
    uint256 greedIndex;         // Greed multiplier
}

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🏗️ Architecture (Simplified for Demo)

Deployment Chains

• Ethereum Sepolia: Full deployment (ZKK-OFT + Fixed Exchange + Uniswap v4 Hook)
• Base Sepolia: ZKK-OFT for cross-chain demo
• Arc Testnet (Optional): Standalone deployment with native USDC

Project Structure

ZakoKen/
├── contracts/           # Smart contracts (Hardhat)
│   ├── src/            # Solidity source files
│   ├── script/         # Deployment scripts
│   └── test/           # Contract tests
├── frontend/           # React frontend application
│   ├── src/
│   │   ├── components/ # React components
│   │   ├── hooks/      # Custom hooks
│   │   └── utils/      # Helper functions
│   └── public/
├── docs/               # Documentation
└── EXECUTION_PLAN.md   # 18-hour sprint plan

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🚀 Quick Start

Prerequisites

• Node.js 18+
• pnpm
• Wallet with Sepolia ETH and Base Sepolia ETH

Installation

# Clone repository
git clone https://github.com/ZakoDAO/ZakoKen.git
cd ZakoKen

# Install dependencies
pnpm install

# Setup environment
cp .env.example .env
# Edit .env with your private key and RPC URLs

Deploy Contracts

# Deploy to Sepolia
pnpm hardhat run scripts/deploy-zkk.ts --network sepolia

# Deploy to Base Sepolia
pnpm hardhat run scripts/deploy-zkk.ts --network baseSepolia

# Configure LayerZero peers
pnpm hardhat run scripts/configure-layerzero.ts

Run Frontend

cd frontend
pnpm install
pnpm dev
# Open http://localhost:5173

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🎮 Demo Flow

1. Connect Wallet → MetaMask (Sepolia or Base Sepolia)
2. Simulate Off-Chain Transaction → Click button to mint ZKK tokens
3. View Dual Pools:
   • Fixed Pool: 1:1 USDC, 0% fee
   • Uniswap Pool: ~0.998 USDC, 0.05% fee
4. Swap Tokens → Choose pool and redeem for USDC
5. Watch Arbitrage → Project captures price differential profit
6. Cross-Chain Transfer → Send ZKK Sepolia → Base Sepolia via LayerZero

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🏆 Hackathon Tracks

LayerZero ($20,000)

✅ OFT standard implementation ✅ Compose messages for off-chain metadata ✅ Cross-chain Sepolia ↔ Base Sepolia ✅ Custom lzCompose() handler

Uniswap Foundation ($10,000)

✅ v4 Hook with beforeSwap() and afterSwap() ✅ Dynamic fee based on price deviation ✅ Stable-asset AMM logic for ZKK-USDC ✅ Arbitrage opportunity detection

Circle (Optional $4,000)

⭕ Deploy on Arc Public Testnet ⭕ Native USDC integration ⭕ Programmable redemption logic

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📚 Documentation

All documentation is in the docs/ directory. See docs/README.md for complete index.

Primary Document (All-in-One):

• Hackathon Guide ⭐ - Complete guide with quick start, 18-hour plan, and specifications

Supporting Documents:

• Architecture - Full technical specification
• Development - Development instructions
• Deployment - Deployment steps

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🔗 Resources

Official Documentation

• LayerZero V2 Docs
• Uniswap v4 Docs
• Circle Arc Docs

Testnet Faucets

• Sepolia ETH Faucet
• Base Sepolia Faucet
• Circle USDC Faucet

Explorers

• LayerZero Scan
• Sepolia Etherscan
• Base Sepolia Explorer

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📦 Tech Stack

Smart Contracts:

• Solidity ^0.8.20
• Hardhat + Ethers v6
• LayerZero OFT SDK
• Uniswap v4 Core & Periphery
• OpenZeppelin Contracts

Frontend:

• React 18 + TypeScript
• Vite
• RainbowKit + wagmi
• TailwindCSS
• ethers.js / viem

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🤝 Contributing

This is a hackathon project. Contributions, issues, and feature requests are welcome!

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📝 License

MIT License - see LICENSE for details

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👥 Team

Developer: Hannes Gao (Belvast Innovation)

Built for: ETHGlobal Buenos Aires 2025