Agrifi PROJECT SYSTEM ARCHITECTURE
Last updated
Last updated
1. Blockchain Layer (Polygon Network)
Purpose: Serves as the decentralized ledger for AGF token transactions, ownership records, and smart contract execution.
Components:
Polygon Network: AgriFi uses Polygon (a layer-2 Ethereum solution) for low-cost, fast transactions, ideal for frequent interactions like staking and trading. Polygon’s compatibility with Ethereum ensures access to a robust DeFi ecosystem.
AGF Token Contract: An ERC-20 compliant smart contract managing the 7.2 billion AGF token supply, transfers, and balances.
Smart Contracts:
Ownership Contract: Records fractional ownership of farmland assets, mapping AGF tokens to specific land parcels or portfolios.
Staking Contract: Manages staking mechanics, including lock-up periods (30–360 days), APYs (5–18%), and early unstaking penalties (2% fee).
Profit Distribution Contract: Distributes agricultural profits (e.g., from crop yields) to AGF holders based on their token holdings.
Governance Contract: Enables token holders to propose and vote on platform decisions (e.g., new farmland acquisitions, APY adjustments).
Security Considerations:
Contracts should be audited by reputable firms (e.g., OpenZeppelin, Certik) to prevent vulnerabilities like reentrancy or overflow attacks.
Use upgradeable contracts (via proxy patterns) to allow future enhancements without disrupting the ecosystem.
Why Polygon?: Low gas fees and fast transaction finality enhance user experience, especially for retail investors with smaller transactions. Polygon’s interoperability with Ethereum allows integration with DeFi protocols like Aave or Uniswap for liquidity.
2. Business Logic Layer
Purpose: Implements AgriFi’s core functionalities through smart contracts and off-chain logic, ensuring seamless interaction between blockchain and real-world data.
Components:
Farmland Tokenization Module:
Tokenizes physical farmland into AGF tokens, with each token representing a fraction of ownership.
Uses unique identifiers (e.g., NFTs or metadata in the Ownership Contract) to link tokens to specific land parcels or diversified pools.
Integrates with legal frameworks to ensure tokenized ownership is recognized in relevant jurisdictions.
Staking Module:
Manages staking pools with predefined lock-up periods and APYs.
Calculates rewards based on staking duration and distributes them periodically (e.g., monthly or quarterly).
Enforces the 2% early unstaking penalty, redirecting fees to a reserve or community pool.
Profit Sharing Module:
Collects revenue from farmland operations (e.g., crop sales, leases) via off-chain integrations.
Converts profits to stablecoins (e.g., USDC) for distribution to AGF holders, minimizing volatility.
Uses a transparent formula to allocate profits proportional to token holdings.
Governance Module:
Implements a decentralized autonomous organization (DAO) framework for community governance.
Allows AGF holders to submit proposals and vote, with voting power proportional to token holdings or staked amounts.
Includes mechanisms to prevent whale dominance (e.g., quadratic voting or capped voting power).
Oracles:
Integrates with Chainlink or similar oracle networks to fetch real-world data, such as crop yield reports, commodity prices, or land valuations.
Ensures accurate profit calculations and asset valuations for tokenization.
Scalability Considerations:
Use batch processing for profit distributions to reduce gas costs.
Optimize smart contract logic to minimize computational overhead, leveraging Polygon’s high throughput.
3. Off-Chain Layer
Purpose: Handles data storage, farm management, and integrations that cannot be fully decentralized due to practical or regulatory constraints.
Components:
Database:
Stores metadata about farmland assets (e.g., location, size, crop type, legal documents) in a secure, centralized database (e.g., AWS RDS or MongoDB).
Maintains user profiles, KYC/AML data, and transaction histories for compliance.
Uses encryption and access controls to protect sensitive data.
Farm Management System:
Interfaces with farmers and agricultural partners to collect operational data (e.g., yields, expenses).
Integrates with IoT devices (as suggested in AgriFi docs) for real-time monitoring of soil health, water usage, or crop growth, enhancing transparency.
Supports community-sponsored agriculture initiatives, as outlined in the docs, by connecting investors with local farmers.
File Storage:
Uses decentralized storage solutions like IPFS or Filecoin for immutable records of legal documents, land titles, or audit reports.
Ensures transparency and accessibility for investors verifying asset legitimacy.
Regulatory Compliance:
Implements KYC/AML checks for investors, especially for tokenized real estate, which may be classified as a security in some jurisdictions.
Partners with legal firms to ensure compliance with local land ownership and securities laws.
Why Off-Chain?: Real-world agricultural data and regulatory requirements necessitate centralized components, but blockchain ensures transparency for critical operations like ownership and profit sharing.
4. API Gateway
Purpose: Provides a secure, scalable interface between the frontend, blockchain, and off-chain systems.
Components:
REST APIs:
Expose endpoints for user actions (e.g., buy AGF tokens, stake tokens, view farmland details).
Handle authentication (e.g., OAuth2, JWT) and rate limiting to prevent abuse.
Web3 Integration:
Uses Web3.js or Ethers.js to interact with Polygon smart contracts, enabling wallet-based transactions (e.g., MetaMask, WalletConnect).
Supports signing transactions for staking, voting, or transferring AGF tokens.
Event Listener:
Monitors blockchain events (e.g., token transfers, staking rewards) to update the frontend in real-time.
Uses Polygon’s JSON-RPC endpoints or services like The Graph for efficient event indexing.
Security Considerations:
Implement HTTPS and CORS to secure API communications.
Use API keys or token-based authentication to restrict access to authorized users.
Deploy a Web Application Firewall (WAF) to protect against DDoS attacks.
5. Frontend Layer
Purpose: Delivers an intuitive, accessible interface for users to interact with AgriFi’s platform.
Components:
Web Application:
Built with React.js or Vue.js for a responsive, single-page application (SPA).
Features dashboards for viewing farmland assets, staking rewards, profit distributions, and governance proposals.
Includes portfolio analytics (e.g., ROI, APY projections) to enhance user engagement.
Mobile Application:
Native apps (iOS/Android) or a progressive web app (PWA) for broader accessibility.
Supports push notifications for staking reward updates, profit distributions, or governance voting deadlines.
Wallet Integration:
Connects to decentralized wallets (MetaMask, WalletConnect, Coinbase Wallet) for secure transactions.
Simplifies onboarding with guided flows for non-crypto-native users.
User Experience:
Offers multilingual support to cater to global investors, especially small farmers in emerging markets (as noted in AgriFi’s mobile remittance goals).
Provides educational resources on tokenized farmland and DeFi to lower entry barriers.
Accessibility Considerations:
Optimize for low-bandwidth environments, as many farmers or investors in rural areas may have limited internet access.
Ensure WCAG compliance for users with disabilities.
6. External Integrations
Purpose: Enhances AgriFi’s functionality by connecting to external services and ecosystems.
Components:
Decentralized Exchanges (DEXs):
List AGF on Polygon-based DEXs (e.g., QuickSwap, SushiSwap) for liquidity and trading.
Enable liquidity pools to incentivize market makers with AGF rewards.
Oracles:
Chainlink for real-world data feeds (e.g., crop prices, weather data).
Supports dynamic APY adjustments based on market conditions or platform revenue.
KYC/AML Providers:
Integrate with services like Onfido or Sumsub for user verification, ensuring compliance with securities regulations.
Payment Gateways:
Support fiat on-ramps (e.g., MoonPay, Ramp) to allow users to buy AGF with credit cards or bank transfers.
Enable mobile remittances for small farmers, as highlighted in AgriFi’s docs, using stablecoins or local currencies.
Sustainability Initiatives:
Partner with carbon credit platforms or regenerative agriculture programs to incentivize sustainable practices, aligning with AgriFi’s vision of environmental stewardship.
Scalability:
Polygon’s high throughput (up to 65,000 TPS) supports a growing user base and frequent transactions.
Off-chain databases and API caching reduce blockchain load, ensuring cost efficiency.
Security:
Audited smart contracts and secure API endpoints protect against hacks and data breaches.
Decentralized storage (IPFS) and oracles (Chainlink) ensure data integrity and reliability.
Transparency:
Blockchain records all ownership, staking, and profit-sharing transactions, verifiable by users.
IoT integration and audit reports provide real-time insights into farmland performance.
User Accessibility:
Intuitive frontend and wallet integrations lower the learning curve for non-crypto users.
Mobile apps and fiat on-ramps broaden the platform’s reach, especially in emerging markets.
Regulatory Compliance:
KYC/AML integration and legal partnerships mitigate risks associated with tokenized real estate.
Transparent governance ensures community trust and regulatory alignment.
Phased Rollout:
Phase 1: Deploy core smart contracts (AGF token, staking, ownership) and a basic web app for early adopters.
Phase 2: Integrate profit sharing and governance, expand to mobile apps, and list AGF on DEXs.
Phase 3: Add IoT integrations, sustainability initiatives, and global partnerships to scale the ecosystem.
Cost Management:
Leverage Polygon’s low gas fees to minimize operational costs.
Use serverless architectures (e.g., AWS Lambda) for off-chain APIs to reduce infrastructure expenses.
Risk Mitigation:
Conduct regular security audits and penetration testing for smart contracts and APIs.
Establish a bug bounty program to incentivize community-driven vulnerability detection.
Monitor regulatory developments in key markets to adapt compliance measures.
Community Engagement:
Launch marketing campaigns to educate investors and farmers about tokenized farmland.
Incentivize early adopters with bonus APYs or governance tokens to bootstrap the ecosystem.
Democratizing Agriculture: Fractional ownership and mobile apps make farmland investment accessible to retail investors and small farmers.
Transparency: Blockchain and IoT integrations ensure verifiable ownership and operational data.
Sustainability: Partnerships for sustainable practices and carbon credits align with environmental stewardship.
Profitability: Staking and profit-sharing modules incentivize long-term investment while rewarding farmers and investors.
Cross-Chain Compatibility:
Bridge AGF to other blockchains (e.g., Ethereum, Binance Smart Chain) using protocols like Polygon’s PoS Bridge or Wormhole to tap into broader DeFi ecosystems.
AI Analytics:
Integrate AI models to predict crop yields, optimize staking APYs, or recommend farmland investments based on user risk profiles.
Decentralized Identity:
Use self-sovereign identity (SSI) solutions (e.g., uPort) for KYC/AML, enhancing privacy and reducing reliance on centralized providers.
Insurance Integration:
Partner with DeFi insurance protocols (e.g., Nexus Mutual) to protect investors against crop failures or platform risks.
This architecture provides a robust, scalable foundation for AgriFi’s DeFi platform, enabling tokenized farmland investments, staking, profit sharing, and governance. By leveraging Polygon’s efficiency, smart contract automation, and off-chain integrations, AgriFi can deliver a transparent, accessible, and sustainable ecosystem. The modular design allows for iterative improvements, ensuring AgriFi can adapt to market needs and regulatory changes.
The proposed architecture supports AgriFi’s goals, as outlined in the documentation ():
