Confidential Workflows | Solange Gueiros at ETHOnline 2026

Transcript

[music] >> So, welcome everyone. And this hackathon is so special to us because we are pushing and promoting you to learn and use a theory, but more than theory, it will be to use confidential workflows. And this will be a huge opportunity for the you because confidential workflows it's a new feature and is still on beta, so you can like get this access before everyone.

So, with this let's start with our prizes because all the links that I'm using today are here. So, if you go to our prizes page, this is the best way to start. You can see I'd like to like refresh before. So, you can build a confidential workflow. So, two teams you receive 1K each. And what's idea? A confidential workflow is the way that you can protect your secrets in a environment like imagine that we have a sharing environment, a workflow, but you

have something that you are not sharing with all the decentralized Oracle networks, not sharing with the downs. So, we are using a TEE to do that. And um this is something you use case like create a smart contract audit can be audit firewall or automated liquidation protection. We have another challenge on that as well. Or create some confidential portfolio rebalancing.

And all of these are ideas that you could use. These are the requirements, but this is the most important part for you like just now. Uh we have here some interesting related to the docs and the bootcamp and I'm starting with the bootcamp, the book that I have here is the same that I have opened here because this is everything that you need. We made a bootcamp the last week. Two days and you have a lot of things to learn here. Exactly what is theory that we comment before, the chaining current time environment is a new mindset where you create your project not thinking

only in the smart contract itself, but in a full workflow with everything that you'd like to do with on-chain actions, but also all that you can have in off-chain and connect everything together. Okay? Uh we have the concepts over there. And after that, you'll be why to be confidential. So, why the confidential computing and what we are solving. We are delighted to protect your risk thresholds or strategies and your credentials and our proprietary models and reasoning that you have in your own

project. Okay? This is the goal. And like I said before, we are running in we have a instance of a TEE at the trusted execution environment. And there are some that can be used in the future. For now, we have it one on Amazon and other in the future. So, this is what you have in our and how you can do that. I'm not going so deeply on this one now because you have the boot camp, so it's 2 days of 2 hours each on YouTube. You have everything. Here you have it the first day here as well, and then you can jump to the second day

after that, okay? And all the content is here as well, okay? The first study case study that we showed last week, it was the AI audit file. You can go to that. The second one uh it will be the automated uh so this is the first one. The second one, it will be the automated liquidation protection. That is this one. But for this one, I have a extra challenge for you. And if you go back to our prizes, you can see that we have it an automated liquidation protection challenge. And I'm talking more about this here. Because this you should do

like on production. And this will be so cool. What is the goal? The challenge with you it will be you can create your own strategy, your own workflow strategy to protect to be liquidated. And then you are deploying this strategy in what we say private environment. Let's talk about the private environment before. So I have here the hello world workflow to you and then how is this?

Um before you get this, it's important to get the um to to ask your deploy access, okay? I will talk about that as well. So uh the workflow it will this is how you can deploy the workflow, okay? It's important to you to first prepare the environment like it is is the basic one. Uh but the most important, you have some API secrets that here I have almost nothing, but you should have your strategy in your API secrets.

And then you can deploy in the way that we have it here, okay? After and you have until the hackathon deadline it should create your strategy and deploy your workflow. When we adding the deadline, okay, time it to judge things, then you cannot change your workflow anymore. And you'll be in that moment, us at Chainlink Labs, we are starting to do some simulations to see if your strategy can survive.

So, what will be that? Let's go to the project itself. If I come back here and I'd like to go to the challenge itself. It's my my repo over there. And um this is that second one that is really life. Uh you must build your workflow to avoid be liquidated, to try to have your loan open the maximum you can in terms of value and time. And you have the emergency capital, so use in efficiency way.

And it's important to keep like the rules and your credentials private, okay? This will be the goal. We have an example for you. And you could like uh create um your This could be your strategy. Like a goal when the health factor is below 1.08, then you can repay or you can add more collateral. You can choose whatever you'd like to do, okay? Uh you are like playing with our lending and borrowing the liquidation smart contract, okay? So, this contract let's go directly to this. Like this is a local one. I'm not sure like exactly

where I am. Let's see. Probably I must run it again. Wait a minute. Um yeah, any PM run. Okay, let's run it again. So, I'm running. And I have it any idea in which address I am now. Let's wait. Here we are. And all of these like if you'd like to see these in the front end as well, you can do it, no problem. Let's see what is the right lending address that is the official one. I'm not sure which is that. Let's see.

Uh so, here I can see the virtual challenge is smart contract. Is this. Okay. This is the contract itself. You can check it out the contract. And it was deployed like some minutes ago. I just updated it. So, I'm I'd like to use this address here. And I can simply update the address over there because okay, you deployed the real one that I'm testing on the real one. But how you can test your own strategy before using the real one. So, deploy all of these contracts like a deploy a virtual ETH, a virtual USD, and a virtual lending and borrowing

contract, and then test itself in the way that you'd like to test. At the end, you must uh join the official scenario. Like it's not open yet and I'm opening the official one now. So, let's open it it for you. Should it Uh I think I am in the right address, so I may open this so only I can do that. After I open, then you can uh join it. So, we're starting now. You can officially join it.

When the transaction is done, let's wait. I was done. Okay, so this is the official one now. And uh I will join being a like a hacker like you. Oh, I think I must like refresh here. Okay. You and I can join as well, so join the challenge. You should do this like if it let you participate on that one, join the challenge.

What will happen when you decide that you join the challenge? You will receive some ETH and you automatically uh borrowing some uh veto USD. So, is this I must fix something here as well. Uh probably I'll deploy this contract again in a few minutes, okay? But, you should have a five ETH deposit in collateral and five ETH here. I don't know why is this so crazy. I'm fixing this in a few minutes, okay?

And then, you have a 7K USD on your wallet, okay? And you do with this. Uh after that, you should and this is the automatic part that your strategy you do. So, in our strategy, you should do Okay, if the price went 50% down, what I'd like to do? I'd like to deposit more ETH, more collateral. I'd like to repay. Uh what I'd like to do? Or okay, my risky factor now is 1.11.

Uh I am a like a dangerous person, so I'd like to increase my risk factor. I'd like to borrow more. I could borrow more. This is easy. So, you can do that as well. Borrow more, okay? And this is you can like create your own strategy in a way that maximize your debt and survive not being liquidated. And when the price is start to change, like if I start to change the price now and some people join now, another join later, we don't have it them in the same

time frame. So, because of this the real one will be start only when the hackathon submission deadline ends. Okay? So, okay, we achieve the hackathon submission deadline. After that, during the next 48 hours, I'm changing the price a lot. And not exactly me, but we have a ready like a script to do that. And the price will change like you go up a bit, you go down a bit, and we can do like the price changes in something like this.

I must update this because you don't have this anymore, okay? You have only the debt now. And this is this could be some scenarios that I'm planning to run. We can do a gradual decline of the price. You can do a sudden crash. You can go down and up again. We can do something of this. This is some ideas, okay? And the goal is to have your strategy ready to scenarios like this one.

So what you can do until the hackathon deadline? Create your strategy and the create your own set of contracts in a way that you can test this. When everything is fine, then you can join the hackathon and join like the official one. And then we are like testing our workflow okay? How can we test you? You only can test people who joined here, okay? So remember that I may just because I must do some adjustments today. We are um You can join starting tomorrow, okay? I am still doing the some last minute

adjustment. I'm not sure if it is was the front end or I added the wrong contract here. I must check it out, okay? But this is the way that we work, okay? So okay, I'd like to participate and how can I start? First, you should deploy your own smart contracts. I have it done on remix, but if you go here, we have a script here as well. In some of these like in the script one, I have the scripts the deploy script from hard hat so you could deploy the three contracts in one way like deploy the two tokens, the challenge and also remember that approving the the

challenge to be a minter in on the both tokens, okay? Because to you understand a bit more of the the challenge contract itself. Let's use it this part here. Like when you join, what's happen? Join. Here. When you join, you you happen something like this. Uh, we are minting from 10 A 10 K no, from 10 E we are minting 5 E for you in our wallet and 5 E being the start collateral in your position.

Also, we are minting your debt itself. Okay? Uh, the 7 K. After that, uh, we are minting like for the contract itself the 5 K that you deposit in the contract and also you are updating your positions. It will be this. So, this is your position. But, you can see that um, how can you get like virtual E or virtual USD? The virtual E uh, and virtual USD, they will go to you when you join your position. And you cannot like in the real one, you cannot mint more of them. At least not more uh,

virtual E. Uh, you only have what we gave it to you when you join the position. And if using this, the total is 10 E, you must manage how you'd like to do that. Okay? This is the main goal of that one. Okay? And also, if you can see here that the actions that you can do and the leaderboard is here. I'm updating this a bit more uh, to understand how is the score, what's happened over there.

And uh, so to understand this part as well, you can see uh, in the smart contract uh, how you calculate the healthy factor. It's like the normal one like Aave and others do that. And we can liquidated you. Oh, one point related to the liquidation. Like remember that uh, this part is like from us, on chain link. Uh, I'm starting the scenarios only, remember, when the hackathon deadline is achieved. Then I have a 24 hours to run some scenarios. But the scenarios will be something like this. I can update the uh,

the price for 1 uh, 1950, something like that. I can update the price in one transaction. And I can check the liquidations in the next transaction, like the next block. It will not be in the same transaction in a way that you have some time to act. This is our goal. But this can happen like uh five um, like a five blocks after. This can happen one block after. This can happen five sec, like five minutes after. So you don't know what is the timing frame between we

update the price and we try to liquidate you. So in your strategy, you must be smart to like um, rebalance your position as fast you can. How you can like balance your position? You could check your position every minute, every five minutes, or you could check your position uh, every time the price change. Because if you think about the price change, how can I check it?

Uh, if I get I came here and you can see like the price here. Uh, when I do the price update, I emit an event that call it price update. So you could use it this to be the trigger to start your action. Or you can start your actions like it by minute, by 5 minutes, something like that. Okay? Also to inspire you, like it should not be the last one, but in our smart contract itself, I have one example here. I prefer to open on VS Code here.

Uh so, here if I came into the automated liquidation protection, you can go and it is good to you to understand better here how this is working. This is like the configuration of your workflow. It's already handed to you to deploy in the private uh done later, okay? The this will be like your production. At the end, you must do this before the hackathon deadline. And then, if I go here in the Yeah, this is the main. You can see that on mine, I decided to use a cron trigger.

And how is my cron trigger? I can check it out, for example, in the staging one that my cron trigger is running every 5 minutes. But maybe this is too risky because I commented to you, I updated the pricing one block, maybe it's less than 5 minutes to update again. So, you could change this to have a trigger that is not a cron trigger, but um HTTP trigger. And it is based on an event. And the event is when the price is updated. I didn't I didn't do this exactly because this is your challenge.

Like I made a cron trigger only to you to have some basis to start. Another point here that I would like to show you is how I'm configurating the secrets. Like this is so important for you. So, where are the secrets? The secrets should be exactly here here here here. Oh, it's in my other file, but you must understand how is the secrets happen, okay? Um so, here are the secrets. This is the dot env example over there.

And you can see that I decided to to see how is the I'd like to do some intervention when the liquidation is 1.15. Okay? This is something that I could do. I'd like to repay 15% or I'd like to deposit more three ETH. Ah, another point for you. How the decimal places on these two virtual tokens are only two. We are not using 18 decimal places like it. We are using only two to be better to visualize it, but this is tricky because

it is more sensible for you when you are achieving something, okay? And this is the parameters that will be on the secrets part, okay? So, this is important for you. So, what else I should ask you now? Oh, it's important that you have more details on readme as well. All the details of the strategies and how you can how is starting the position and how this Oh, this is another thing important, but it's better to see like over there in the readme file. If you go here, I am

let's go to the readme. So, here we are. If you have some depth, you can like right now let's use a few minutes to to solve your depths as well. And this one because this is the like the main way that we are like checking and deciding the winner. It will be the lower continuity. It's the sum of your depth and the interval duration.

Everyone is starting the same time. This is the moment the hackathon ends and then we start to run the simulations like you run the scenarios. And we are checking like you are starting with the same depth. Everyone is starting the same depth. And in the same time. Then at the end we are checking how is your depth and how long you survived on that one. This is the lower continuity that we are checking, okay? And we have some points that we are still doing some adjustment to have it the best one. But you can see here some weights that we are trying to see as well. So, we are seeing your

liquidation protection, the lower continuity. Also, we are checking how many actions did you made. So, a person who made less actions and has a better lower continuity can win on that one as well. So, is this this is a real challenge that you can use it this if it is works well here, you can have it this in a real Aave or other lending protocol for yourself later, okay? And this is the way that we can start. To help you, you saw that I have a front end here to check something. Feel free to use this front end or to create anyone if you'd

like it. In the front end one, uh important, where Okay, I deployed my three contracts, my token, my virtual wheat, my virtual USD, and the changing lending uh to use it on during this week before the deadline, okay? How can I use it them here in the front end? You saw that I can like update them here, but you could update directly here in the front end one. Uh and this is the in the address. So, update them here and they appear hot right for you in your front end as well, okay?

And so, this is the one of our challenges. Uh we just talked about this challenge that this is the new the new one, the automated liquidation challenge, because this is not depending only what you're building during the time uh of building or but after that. You must build the passive strategy now, and us uh we are trying to check your strategy. We are running scenarios in the 24 hours after that, okay? But also, what is our third challenge for you? If you are already

having some project and you'd like to add chaining over there, you have a price to do this as well. So, this is the continuity track participants. Uh you can add anything like this in your project that you already have, and you are um eligible for this track as well. So, remember we have a three tracks for you, like first one, the best confidential workflow, anyone, any workflow, don't must be the automated liquidation protection, use anything.

You can add the chain link in a project that you already have. And you can participate in the automated liquidation protection challenge. This must to deploy the smart contract, okay? This is the important one. And we are at sent in our Discord, and we are sending again I would the link here to the form in order to be sure that you can ask your deployment access as well. Okay? Let's see if you you will have some question. Yes, shut.

I'm checking the chat now. Yes. Uh Emmanuel, like him like the challenge is paid group, okay? So, you are deploying and everything that you are to be meeting is in our group. And okay, is one address that is running this, but should be for your group, okay? Great question.

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