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Introduction

    The Dera protocol reimagines digital assets by introducing yield-generating ERC-20 tokens that combine liquidity, passive income, and secure smart contract infrastructure. In today's DeFi and financial landscape, traditional stablecoins (like USDT, USDC) are static---they serve as a medium of exchange and store of value but fail to generate yield for holders. Dera solves this inefficiency by enabling users to remain in full custody of their assets while earning yield automatically through protocol-defined strategies.

    At its core, Dera is a decentralized, non-custodial system where users interact via smart contracts to mint and redeem interest-accruing $DERA tokens. Unlike staking or yield farming platforms that require technical know-how and fund lock-ups, Dera allows seamless deposits in whitelisted stablecoins, which are then deployed into DeFi protocols through a set of modular, upgradeable smart contracts. These mechanisms ensure that capital is distributed across multiple yield-generating pools and that interest earned is transparently and securely reflected in token value growth.

    The protocol's architecture emphasizes self-custody, transparency, modularity and aims to comply with MiCA's Asset-Referenced Token (ART) framework.

Smart contract architecture: Overview of contract structure

This section offers a high-level overview of the Dera protocol's modular smart contract system, which powers yield-generating token issuance, DeFi allocations, user interaction, and protocol governance. The architecture consists of three main contracts:

DERA1 Contract (ERC-20 + OFTv2)

The DERA1.sol contract is a customized ERC-20 token implementation that serves as the native yield-generating asset within the Dera Protocol. It follows the standard ERC-20 interface, with a strict mint/burn mechanism exclusively callable by the DeraEngine contract. This ensures that DERA tokens are only minted when real deposits are made, and burned upon redemptions---preserving a 1:1 peg with the protocol's total value locked (TVL).

In addition to its core ERC-20 logic, $DERA integrates LayerZero's OFTv2 (Omnichain Fungible Token Version 2) standard, allowing $DERA tokens to move seamlessly across supported chains while maintaining a unified global supply. This omnichain functionality is built on LayerZero's Ultra Light Node (ULN) architecture, which eliminates the need for wrapped tokens or custodial bridges.

Cross-chain transfers are executed using sendFrom() and receiveFrom() functions and secured through a decentralized, two-actor verification model:

  • Oracle: Provides block headers from the source chain.

  • Relayer: Supplies Merkle proofs and transaction payloads.

Both actors must independently verify the message before it is finalized on the destination chain through lzReceive(). This ensures exactly-once delivery, ordered message execution, and protection against replay or duplication attacks---making $DERA truly interoperable and secure across chains.

Role-Based Access Control​

$DERA implements a strict permission model via a custom DeraRoles abstract contract, built on OpenZeppelin's AccessControlDefaultAdminRules. This approach enforces:

  • ENGINE_ROLE Control: Only the DeraEngine contract holds the ENGINE_ROLE and is authorized to mint and burn tokens.

  • Secure Admin Handover: DEFAULT_ADMIN_ROLE can only be transferred via a secure, time-buffered two-step process:

  • beginDefaultAdminTransfer(address newAdmin)

  • acceptDefaultAdminTransfer() --- must be called by the new admin

  • Optional cancelDefaultAdminTransfer() --- protects against misfires

This ensures intentional and traceable administrative changes, meeting best practices for DeFi governance and MiCA-aligned operational integrity.