Orange Dollar (OD)

An algorithmic stablecoin on Bitcoin L1, powered by OPNet.

OD is pegged to $1 USD, backed by WBTC held in a shared reserve, and priced by an on-chain TWAP from a MotoSwap liquidity pool. A companion token, ORC (Orange Reserve Coin), represents equity in the reserve and absorbs BTC volatility in exchange for fee yield.

Based on Minimal Djed by Zahnentferner et al. (IOHK).

Protocol Overview

Tokens

Token	Symbol	Role
Orange Dollar	OD	Stablecoin, pegged to $1 USD
Orange Reserve Coin	ORC	Reserve equity token

Both are OP-20 tokens. mint() and burn() are restricted exclusively to the ODReserve contract.

Contracts

Contract	Purpose
OD	OP-20 stablecoin with reserve-restricted minting
ORC	OP-20 equity token with reserve-restricted minting
ODReserve	Core protocol: holds WBTC, enforces ratios, mints/burns tokens, reads TWAP

How It Works

Users deposit WBTC into ODReserve and receive OD (stablecoins) or ORC (equity)
The exchange rate for OD is set by an on-chain TWAP from a MotoSwap WBTC/OD pool
Reserve ratio bounds (400%--800%) ensure the system stays overcollateralised
Fees (1.5% per operation) accrue to the reserve, benefiting ORC holders

Operations

Operation	Action	Receives	Blocked When
`mintOD(wbtcAmount)`	Deposit WBTC	OD at TWAP rate	Ratio would drop below 400%
`burnOD(odAmount)`	Return OD	WBTC at TWAP rate	Never blocked
`mintORC(wbtcAmount)`	Deposit WBTC	ORC at equity price	Ratio already above 800%
`burnORC(orcAmount)`	Return ORC	WBTC proportional to equity	Ratio would drop below 400%

Reserve Ratio

reserve_ratio = (reserve_wbtc * twap) / od_supply

All values are in u256 with 1e8 scale (400% = 400_000_000).

RC Pricing

equity   = (reserve_wbtc * twap) - od_supply    // surplus value in OD terms
rc_price = equity / orc_supply                   // OD per ORC

First ORC mint uses 1:1 pricing. Subsequent mints use equity-based pricing.

TWAP Oracle

ODReserve reads cumulative price accumulators from a MotoSwap WBTC/OD pool (Uniswap V2-style). No external oracle.

twap = (currentCumulative - snapshotCumulative) / (currentBlock - snapshotBlock)

Window: 6 blocks (~1 hour on Bitcoin). Configurable at deployment.

Bootstrap Lifecycle

ODReserve operates in three sequential, irreversible phases:

SEEDING  ──>  PREMINT  ──>  LIVE
          owner calls       automatic (TWAP
          advancePhase()    window fills)

Phase 0: SEEDING

Only mintORC() is permitted
Investors deposit WBTC and receive ORC, building the initial reserve

Phase 1: PREMINT

Owner calls advancePhase(seedPrice) to enter this phase
Owner calls premintOD(amount) exactly once to mint OD for initial pool liquidity
Owner creates the MotoSwap WBTC/OD pool and adds liquidity
Owner calls initPool(poolAddress) to register the pool with ODReserve

Phase 2: LIVE

Triggers automatically once the TWAP window accumulates 6 blocks of data
All four operations become available
seedPrice is discarded; TWAP is the sole price source
premintOD is permanently disabled

Building

Prerequisites

Node.js 20+
AssemblyScript (installed via deps)

Install & Build

npm install
npm run build

This compiles three WASM contracts into build/:

OD.wasm
ORC.wasm
ODReserve.wasm

Run Tests

npm test

72 tests across 8 test suites covering all contract functionality.

Deployment

Environment

Set up the required environment variables:

export OPNET_MNEMONIC="your deployer mnemonic"
export OPNET_NODE_URL="https://regtest.opnet.org"    # or testnet/mainnet
export OPNET_NETWORK="regtest"                        # regtest | testnet | bitcoin
export OPNET_WBTC_ADDRESS="0x..."                     # existing WBTC contract
export OPNET_MOTOSWAP_FACTORY="0x..."                 # MotoSwap factory

Deploy Contracts

npx tsx scripts/deploy.ts

This deploys three contracts in order:

OD -- no constructor arguments
ORC -- no constructor arguments
ODReserve -- receives OD, ORC, WBTC, and Factory addresses

The script outputs all contract addresses. Save them for bootstrap:

export OD_ADDRESS="0x..."
export ORC_ADDRESS="0x..."
export ODRESERVE_ADDRESS="0x..."

Note: OD and ORC are deployed without knowing the ODReserve address. The reserve link is established in bootstrap step 0 via setReserve().

Bootstrap

After deployment, run the bootstrap sequence to bring the system to LIVE.

# Run all steps:
npx tsx scripts/bootstrap.ts

# Or run a single step:
npx tsx scripts/bootstrap.ts 0

Additional Environment Variables

export OPNET_MOTOSWAP_ROUTER="0x..."                  # MotoSwap router
export SEED_WBTC_AMOUNT="100000000"                   # 1 WBTC (default)
export SEED_PRICE="10000000000000"                     # $100,000 in 1e8 scale
export PREMINT_OD_AMOUNT="..."                         # auto-computed if omitted
export LIQUIDITY_WBTC="10000000"                       # 0.1 WBTC for pool
export LIQUIDITY_OD="..."                              # auto-computed if omitted

Step-by-Step

Step	Phase	Action	Who
0	Post-deploy	`OD.setReserve(reserveAddr)` + `ORC.setReserve(reserveAddr)`	Owner
1	SEEDING	`ODReserve.mintORC(wbtcAmount)` -- seed the reserve	Investor(s)
2	SEEDING -> PREMINT	`ODReserve.advancePhase(seedPrice)`	Owner
3	PREMINT	`ODReserve.premintOD(odAmount)`	Owner
4	PREMINT	`WBTC.approve(router, ...)` + `OD.approve(router, ...)`	Owner
5	PREMINT	`Factory.createPool(wbtc, od)`	Owner
6	PREMINT	`Router.addLiquidity(wbtc, od, ...)`	Owner
7	PREMINT	`ODReserve.initPool(poolAddress)`	Owner
8	PREMINT -> LIVE	Wait 6 blocks (~1 hour), then any user interaction triggers LIVE	Automatic

Step 0: Link Tokens to Reserve

After deploying all three contracts, the owner calls setReserve(address) on both OD and ORC to link them to the ODReserve. This is a one-shot call -- it can only be called once and only by the deployer. Until this is done, nobody can mint or burn tokens.

Selector: 0xb86a7d16    setReserve(address)
Calldata: selector (4 bytes) + address (32 bytes)

Steps 1--7: Seed, Premint, Add Liquidity

These steps build the reserve, create the MotoSwap pool, and register it with ODReserve. After step 7, the TWAP oracle begins accumulating data.

Step 8: Go Live

After 6 blocks (~1 hour on Bitcoin mainnet, instant on regtest), the next user interaction automatically transitions the system from PREMINT to LIVE. All operations are now open.

Governance: PERMAFROST

After bootstrap, contract ownership is transferred to a PERMAFROST threshold key — a 3-of-5 multisig using ML-DSA-44 (post-quantum, NIST Level 2). No single individual can execute admin functions; 3 of 5 signers must participate in a multi-round signing ceremony.

Key Generation

The PERMAFROST public key is created via a Distributed Key Generation (DKG) ceremony at signing.odol.cash. Each signer receives an encrypted key share; the combined public key is published on-chain.

Threshold Signing

When an admin action is needed, 3 signers coordinate via the cabal page at cabal.odol.cash:

Select the governance action and parameters
Load and decrypt key shares
Complete 3 signing rounds (commitments, responses, partial signatures)
The combined signature is broadcast to the network

Encrypted WebSocket Relay

Signing rounds can be completed either by copying/pasting blobs manually (offline mode) or via an encrypted WebSocket relay that automates the exchange in real time. The relay is trust-minimised:

All payloads are encrypted end-to-end (ECDH P-256 + AES-256-GCM)
The relay sees only ciphertext and routing metadata
A session fingerprint (SHA-256 of all ECDH public keys) lets signers detect MITM attacks
Signers can always fall back to offline mode if they distrust the relay

The relay server (relay/) is a stateless Go binary with no database and no disk I/O. Source: relay/.

Architecture

                    ┌──────────────────┐
                    │   MotoSwap Pool  │
                    │   (WBTC / OD)    │
                    └────────┬─────────┘
                             │ TWAP
                    ┌────────▼─────────┐
   WBTC ──────────> │    ODReserve     │ <────── WBTC
   (deposit)        │                  │         (withdraw)
                    │  mint/burn OD    │
                    │  mint/burn ORC   │
                    │  enforce ratios  │
                    │  collect fees    │
                    └───┬──────────┬───┘
                        │          │
              ┌─────────▼──┐  ┌───▼──────────┐
              │     OD     │  │     ORC      │
              │  (stable)  │  │   (equity)   │
              │  OP-20     │  │   OP-20      │
              └────────────┘  └──────────────┘

Key Design Decisions

Djed Paper	OD Implementation	Reason
Reserve = native currency	Reserve = WBTC (OP-20)	OPNet contracts cannot custody native BTC
Oracle = external signed feed	Oracle = MotoSwap TWAP	Fully on-chain, no trusted operator

Precision

All values use u256 with 1e8 scale. All arithmetic uses SafeMath -- no raw operators on u256.

Value	Decimals	Example
WBTC	8	1 WBTC = `100_000_000`
OD	8	1 OD = `100_000_000`
ORC	8	1 ORC = `100_000_000`
Reserve ratio	8	400% = `400_000_000`
Fees	8	1.5% = `1_500_000`

dApp

The app/ directory contains a React frontend for interacting with the protocol.

Run Locally

cd app
npm install
npm run dev

Opens at http://localhost:5173. Requires OPWallet browser extension (v1.8.2+).

Features

Trade tab -- Mint/burn OD and ORC, transfer tokens, manage approvals
Dashboard tab -- Reserve ratio, TWAP price, equity, supply stats, health bar
Admin tab -- Bootstrap wizard (auto-detects phase), protocol status, emergency controls
Network switching -- Testnet / Mainnet selector in the header
OPWallet integration -- Connect, sign transactions, view balances

Project Structure

src/
  contracts/
    OD.ts               # OD stablecoin (OP-20)
    ORC.ts              # ORC equity token (OP-20)
    ODReserve.ts        # Core reserve contract
    MockMotoSwapPool.ts # Mock pool for testing
    MockWBTC.ts         # Mock WBTC for testing
  selectors.ts          # Cross-contract call selectors
tests/
  OD.test.ts            # OD token tests (11)
  ORC.test.ts           # ORC token tests (11)
  ODReserve.phase.test.ts    # Phase machine tests (5)
  ODReserve.twap.test.ts     # TWAP oracle tests (6)
  ODReserve.orc.test.ts      # mintORC/burnORC tests (13)
  ODReserve.od.test.ts       # mintOD/burnOD tests (12)
  ODReserve.premint.test.ts  # premintOD + view tests (9)
  ODReserve.integration.test.ts  # End-to-end tests (5)
scripts/
  deploy.ts             # Contract deployment
  bootstrap.ts          # Post-deploy bootstrap sequence
app/                    # User-facing dApp (app.odol.cash)
cabal/                  # PERMAFROST signing & admin UI (cabal.odol.cash)
ceremony/               # DKG key generation ceremony (signing.odol.cash)
relay/                  # Encrypted WebSocket relay server (Go)
server/                 # CABAL submission backend (Node.js)
shared/
  config.json           # Contract addresses & RPC URLs (single source of truth)
docs/                   # VitePress documentation site
site/
  index.html            # Landing page

License

MIT

Name		Name	Last commit message	Last commit date
Latest commit History 74 Commits
app		app
cabal		cabal
ceremony		ceremony
deploy		deploy
docs		docs
relay		relay
scripts		scripts
server		server
shared		shared
site		site
src		src
tests		tests
vendor/post-quantum		vendor/post-quantum
.gitignore		.gitignore
DJED_OPNET_RESEARCH.md		DJED_OPNET_RESEARCH.md
README.md		README.md
asconfig.json		asconfig.json
package-lock.json		package-lock.json
package.json		package.json
style_guide.md		style_guide.md
tsconfig.json		tsconfig.json

Folders and files

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Orange Dollar (OD)

Protocol Overview

Tokens

Contracts

How It Works

Operations

Reserve Ratio

RC Pricing

TWAP Oracle

Bootstrap Lifecycle

Phase 0: SEEDING

Phase 1: PREMINT

Phase 2: LIVE

Building

Prerequisites

Install & Build

Run Tests

Deployment

Environment

Deploy Contracts

Bootstrap

Additional Environment Variables

Step-by-Step

Step 0: Link Tokens to Reserve

Steps 1--7: Seed, Premint, Add Liquidity

Step 8: Go Live

Governance: PERMAFROST

Key Generation

Threshold Signing

Encrypted WebSocket Relay

Architecture

Key Design Decisions

Precision

dApp

Run Locally

Features

Project Structure

License

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