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Azos-Stellar Integration Architecture

System Architecture

Azos-Stellar System Architecture

Image: Comprehensive view of the Azos-Stellar integration architecture showing all components and their connections

Key Components Explained

Stellar Network Layer

  • Stellar Core: The backbone of the Stellar network that processes transactions
  • Horizon API: REST API interface for interacting with the Stellar network
  • Asset Trustlines: Establishes relationships between user accounts and issued assets
  • SEP-1 TOML File: Configuration file hosted at your domain that defines anchor capabilities

Anchor Integration Layer

  • SEP-10 Authentication: Secure, signature-based authentication for Stellar accounts
  • SEP-6/24 Transfer APIs: Standards for handling deposits and withdrawals
  • SEP-12 KYC API: User verification and compliance management
  • Transfer Server: Central service managing transfers between Stellar and Azos

Bridge Layer

  • Azos API Adapter: Translates Stellar operations to Azos Protocol actions
  • Cross-Chain Verification: Ensures transaction validity across blockchains
  • Asset Registry: Maps assets between Stellar and the EVM chain
  • Event Listeners: Monitors blockchain events to maintain synchronization

Azos Protocol Layer

  • CDP Vaults: Collateralized positions for RWAs and regenerative assets
  • Stablecoin Issuance: Minting of stablecoins backed by sustainable collateral

Process Flows

Deposit RWA and Mint Stablecoin Flow

Deposit and Mint Stablecoin Flow

Image: Sequence diagram showing the process of depositing RWA or regenerative assets to mint stablecoins

Minting New Stablecoins Flow

  • Initiation: The Stellar user selects "Mint Azos Stablecoin" in their wallet application.
  • Interactive Interface: The wallet opens the SEP-24 interface, where the user specifies the amount and type of collateral (RWA or regenerative asset) they wish to deposit.
  • Request Processing: The Anchor service receives this request and forwards it to the Bridge service with the necessary minting parameters.

Cross-Chain Operation:

  • The Bridge locks the user's collateral on the Stellar side
  • Simultaneously, it instructs the Azos Protocol to create a CDP (Collateralized Debt Position) vault on the EVM chain

Stablecoin Creation:

  • The Azos Protocol calculates the appropriate collateral ratio, deposits the collateral and mints the corresponding amount of stablecoins on the EVM chain.

Token Issuance:

  • Azos protocol sends stablecoins to The Bridge
  • The Bridge receives confirmation of the received stablecoins
  • The Anchor then issues an equivalent amount of representative stablecoins on the Stellar network
  • These tokens are 1:1 backed by the original Azos stablecoins locked in the bridge contract

Completion:

The stablecoins are credited to the user's Stellar wallet, and they see their updated balance.

Cross-Chain Stablecoin Transfer

Cross-Chain Stablecoin Transfer

Image: Sequence diagram illustrating how stablecoins are transferred from EVM chain to Stellar network

User Experience

Receiving Stablecoins:

  1. Set up a trustline (one-time action)
  2. Receive a notification when stablecoins arrive
  3. See the balance in their Stellar wallet

Using Stablecoins:

  • Trade on Stellar DEX
  • Send to other Stellar users
  • Use with any Stellar application
  • Redeem for original Azos stablecoins via the Anchor