Architecture

The HYRO Protocol architecture is built on Solana using a modular smart contract system that combines on-chain governance with off-chain oracle infrastructure. The current implementation focuses on a foundation layer with challenge-based manager verification and vault management capabilities.

Core Smart Contract Layer

Hyro Protocol Program The main protocol program (7gx2mxou2JwuBNiDhfPeXf8EVK8DUGnXPLKdiyYKT3NL) provides the foundational vault system and transaction execution framework. Built with Anchor 0.31.1, it features a modular design where optional components are controlled by feature flags, allowing for gradual feature rollout.

Policy System Architecture The protocol implements a flexible policy system where vaults can be associated with different validation programs. All policies use a unified validation interface with a single validate function that handles multiple operation types (Creation, Execution, UseFunds, ReturnFunds) through operation-specific contexts. Available policy types include:

Allow Any Policy: Permits all transactions (useful for testing and unrestricted vaults)
Deny All Policy: Blocks all transactions (emergency or maintenance mode)
Limit Transfer Policy: Enforces specific transfer limitations
Owners Policy: Restricts access to predefined owner addresses
Challenge Policy: Implements challenge-based verification and manager qualification

Vault System (Implemented)

PDA-Based Architecture Vaults are implemented using Program Derived Addresses (PDAs) with customizable seeds, ensuring unique and deterministic addresses. Each vault contains:

Policy account reference for transaction validation
Custom seed for address generation
Authority account for transaction execution

Transaction Execution Framework The vault system implements a multisig-like pattern where:

Users create transaction proposals with specific program calls
The associated policy program validates the transaction against vault rules using the unified validate function
Approved transactions are executed by the vault authority
All transactions are recorded on-chain for audit and compliance

Non-Custodial Design Funds remain under smart contract custody at all times. Managers receive execution rights within predefined constraints but never direct access to funds. This architecture ensures capital security while enabling flexible trading strategies.

Challenge System (Implemented)

Challenge Templates Challenge templates define standardized parameters for manager qualification:

Financial Parameters: Starting deposits, entrance costs, profit targets
Risk Management: Daily drawdown limits, maximum loss thresholds
Trading Requirements: Minimum trading days, maximum participants
Administrative Controls: Admin management, fee structures

Challenge Participants Individual challenges track participant progress through comprehensive state management:

Balance tracking with real-time updates
Progress metrics including trading days and profit/loss calculations
Status transitions (initialized, active, completed, failed)
Automated payout logic upon successful completion

Oracle Infrastructure (Implemented)

NATS-Based Architecture The oracle system uses NATS message queuing with JetStream for reliable off-chain data processing:

Message Queue: Persistent message delivery for challenge updates
Real-Time Processing: Live trading performance data aggregation
On-Chain Integration: Automated blockchain updates based on off-chain events
Template Discovery: Automatic discovery and management of challenge templates

Oracle Service Features

Continuous monitoring of active challenges across all templates
Data transformation from off-chain trading venues to on-chain format
Automated transaction submission for challenge state updates
Error handling and retry mechanisms for reliable operation

Manager Registry (Partially Implemented)

Current Implementation The manager registry system is currently implemented with basic functionality:

✅ Manager profile creation and management
✅ Manager verification system with admin controls
✅ Risk rating assignment and tracking
✅ Basic child vault creation framework
🚧 Balance tracking and fee collection (planned)
🚧 Event emission (planned)

Challenge-Based Qualification The current implementation uses challenge templates for manager qualification, which:

Provides transparent, verifiable performance tracking
Eliminates subjective qualification criteria
Creates a meritocratic system based on actual trading results
Reduces barriers to entry while maintaining quality standards

Future Registry Enhancements Additional registry features are planned for future phases:

Comprehensive manager profiles and historical performance
KYC/AML status tracking and compliance management
On-chain reputation scores based on challenge performance
Integration with external verification services

Verification Engine (Planned)

Current Challenge-Based Verification The existing challenge system provides verification through:

Real-time performance monitoring via oracle updates
Automated rule enforcement (drawdown limits, profit targets)
Transparent audit trails for all trading activities
Immediate disqualification for rule violations

Advanced Verification (Planned) A comprehensive verification engine is planned for Phase 1, featuring:

Pre-execution trade validation against vault parameters
Post-execution verification of fills and pricing
Multi-source data validation for accuracy
Integration with external price oracles and trading venues

Governance Module (Planned)

Current Admin Controls The protocol currently operates under multisig administrative control for:

Challenge template creation and modification
Policy program updates and security patches
Emergency protocol pauses and parameter overrides

Future Token Governance A decentralized governance system is planned for Phase 2, featuring:

$HYRO token-based voting mechanisms
Proposal submission and voting procedures
Timelock mechanisms for security
Treasury management and protocol upgrades

Frontend Integration

Playground Application A comprehensive Next.js application provides:

Vault creation and management interface
Challenge template configuration tools
Real-time challenge participation and monitoring
Type-safe blockchain interactions via auto-generated clients

TypeScript Client Generated using Codama for complete type safety:

Auto-generated types from Anchor IDLs
Instruction builders for transaction construction
Account parsing and data deserialization
Comprehensive error handling and validation

Security Architecture

Smart Contract Security

PDA-based account architecture prevents address collisions
Feature flags enable gradual rollout and emergency controls
Comprehensive input validation and error handling
Anchor framework provides built-in security patterns

Oracle Security

NATS JetStream provides message persistence and reliability
Oracle keypair management with secure key storage
Template and challenge validation before state updates
Error handling and retry mechanisms for failed operations

The architecture is designed for scalability and security, with clear separation between implemented features and planned enhancements, ensuring users understand the current capabilities while maintaining transparency about future development.