Smart Contract Design (Old)
Modular Architecture for Programmable Finance
Introduction
The Checks Platform is built on a modular, upgradeable architecture designed to balance flexibility, scalability, and security. At its core, the platform uses the Diamond Proxy Standard (EIP-2535), which enables virtually unlimited functionality under a single contract address. Combined with token-bound accounts (ERC-6551), this framework provides both a rich feature set and strong isolation of user assets.
Diamond Proxy Standard (EIP-2535)
At the heart of the system is a Diamond proxy contract that delegates calls to independent “facet” contracts, each responsible for a set of related functions. This design provides:
Modularity: Facets can be added or upgraded without disrupting the overall system.
Shared Storage: All facets interact with a single storage layout, keeping state consistent.
Standardized Interface: The EIP-2535 Loupe interface allows anyone to query active facets and functions at any time.
Community Support: Well-audited reference implementations and developer tools support this standard.
This architecture ensures that the platform can evolve over time, with new features introduced through additional facets while maintaining a stable external interface.
Architecture Evolution
The modular design means that each major feature is implemented as its own facet, keeping complexity manageable and enabling incremental upgrades. For example:
A facet may handle NFT Check core logic.
Another manages token-bound accounts.
Others can govern yield strategies, escrow functions, or lending models.
Future upgrades — such as new oracle integrations or novel lending mechanisms — can be introduced simply by deploying a new facet and updating the Diamond’s function selector table. This approach ensures long-term adaptability while preserving user-facing stability.
Token-Bound Accounts (ERC-6551)
Each NFT Check is represented as an ERC-721 token that has the ability to own assets through the ERC-6551 standard. When a check is minted, it is assigned a deterministic account address that can securely hold collateral or interact with DeFi protocols.
Benefits of ERC-6551 integration include:
Asset Isolation: Each check maintains its own account, ensuring separation of funds.
Ownership Clarity: Assets belong to the NFT holder, not the platform.
Interoperability: ERC-6551 accounts work seamlessly with existing ERC-721 standards.
Deterministic Addresses: Account addresses can be predicted and audited in advance.
This system guarantees that every check functions as a self-contained unit, with collateral and logic tied directly to its token.
Implementation Approach
The practical flow for NFT Checks is:
Account Creation: When minted, the NFT is associated with its token-bound account.
Proxy Deployment: If no account contract exists yet, the registry deploys a minimal proxy account.
Fund Transfer: The check’s owner or the protocol can deposit collateral into the account.
Smart Logic Execution: The check’s contract logic governs how and when assets can be released, transferred, or used in other protocols.
This approach ensures a clean separation of responsibilities, where the NFT Check defines rules and the token-bound account enforces custody.
Built-In Security Reinforcements
While Security has its own dedicated section, some safeguards are inherent to the architecture of smart contract design:
Upgradeability with Oversight: Diamond proxies allow new features to be added, but upgrades are gated through governance mechanisms to prevent unauthorized changes.
Transparency: The Loupe interface enables anyone to query which facets are active, ensuring users always know the rules governing their checks.
Resilience Through Isolation: Token-bound accounts ensure that even in the event of a protocol pause or module failure, user funds remain segregated and accessible.
These design choices embed security into the structure of the protocol itself, making it part of the architecture rather than an afterthought.
Conclusion
The architecture of the Checks Platform is deliberately engineered to balance innovation with stability. By combining the modular flexibility of the Diamond Proxy Standard with the asset isolation of token-bound accounts, the system ensures that NFT Checks are both powerful and dependable. This framework gives the platform the ability to expand functionality without compromising the core principles of transparency and user protection.
What makes this design unique is not only its upgradeability but its predictability. Users can trust that even as new modules and features are introduced, the external interface of the platform remains stable, their assets remain isolated, and their checks remain verifiable. This continuity provides the reliability that financial applications demand, while still leaving room for the ecosystem to adapt to emerging standards and new opportunities across DeFi.
In practice, this means the platform is positioned for long-term resilience. Every new facet can be introduced without disrupting existing agreements, every check can continue operating regardless of upgrades, and every user can maintain confidence that the system evolves without sacrificing trust. The result is a foundation that is not only technically advanced but also philosophically aligned with the values of decentralization — a platform designed to grow while always protecting the people who use it.
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