Ethereum Wingman

Comprehensive Ethereum development guide for AI agents. Covers smart contract development, DeFi protocols, security best practices, and the SpeedRun Ethereum curriculum.

AI AGENT INSTRUCTIONS - READ THIS FIRST

Default Stack: Scaffold-ETH 2 with Fork Mode

When a user wants to BUILD any Ethereum project, follow these steps:

Step 1: Create Project

npx create-eth@latest
# Select: foundry (recommended), target chain, project name

Step 2: Install & Fork a Live Network

cd <project-name>
yarn install
yarn fork --network base  # or mainnet, arbitrum, optimism, polygon

Step 3: Deploy to Local Fork (FREE!)

yarn deploy

Step 4: Start Frontend

yarn start

DO NOT:

• •Run yarn chain (use yarn fork --network <chain> instead!)
• •Manually run forge init or set up Foundry from scratch
• •Manually create Next.js projects
• •Set up wallet connection manually (SE2 has RainbowKit pre-configured)

Why Fork Mode?

yarn chain (WRONG)              yarn fork --network base (CORRECT)
└─ Empty local chain            └─ Fork of real Base mainnet
└─ No protocols                 └─ Uniswap, Aave, etc. available
└─ No tokens                    └─ Real USDC, WETH exist
└─ Testing in isolation         └─ Test against REAL state

Auto Block Mining (Prevent Timestamp Drift)

When you fork a chain, block timestamps are FROZEN at the fork point. New blocks only mine when transactions happen, breaking time-dependent logic.

Solution: After starting the fork, enable interval mining:

# Enable auto block mining (1 block/second)
cast rpc anvil_setIntervalMining 1

Address Data Available

Token, protocol, and whale addresses are in data/addresses/:

• •tokens.json - WETH, USDC, DAI, etc. per chain
• •protocols.json - Uniswap, Aave, Chainlink per chain
• •whales.json - Large token holders for test funding

THE MOST CRITICAL CONCEPT

NOTHING IS AUTOMATIC ON ETHEREUM.

Smart contracts cannot execute themselves. There is no cron job, no scheduler, no background process. For EVERY function that "needs to happen":

1. •Make it callable by ANYONE (not just admin)
2. •Give callers a REASON (profit, reward, their own interest)
3. •Make the incentive SUFFICIENT to cover gas + profit

Always ask: "Who calls this function? Why would they pay gas?"

If you can't answer this, your function won't get called.

Examples of Proper Incentive Design

// LIQUIDATIONS: Caller gets bonus collateral
function liquidate(address user) external {
    require(getHealthFactor(user) < 1e18, "Healthy");
    uint256 bonus = collateral * 5 / 100; // 5% bonus
    collateralToken.transfer(msg.sender, collateral + bonus);
}

// YIELD HARVESTING: Caller gets % of harvest
function harvest() external {
    uint256 yield = protocol.claimRewards();
    uint256 callerReward = yield / 100; // 1%
    token.transfer(msg.sender, callerReward);
}

// CLAIMS: User wants their own tokens
function claimRewards() external {
    uint256 reward = pendingRewards[msg.sender];
    pendingRewards[msg.sender] = 0;
    token.transfer(msg.sender, reward);
}

Critical Gotchas (Memorize These)

1. Token Decimals Vary

USDC = 6 decimals, not 18!

// BAD: Assumes 18 decimals - transfers 1 TRILLION USDC!
uint256 oneToken = 1e18;

// GOOD: Check decimals
uint256 oneToken = 10 ** token.decimals();

Common decimals:

• •USDC, USDT: 6 decimals
• •WBTC: 8 decimals
• •Most tokens (DAI, WETH): 18 decimals

2. ERC-20 Approve Pattern Required

Contracts cannot pull tokens directly. Two-step process:

// Step 1: User approves
token.approve(spenderContract, amount);

// Step 2: Contract pulls tokens
token.transferFrom(user, address(this), amount);

Never use infinite approvals:

// DANGEROUS
token.approve(spender, type(uint256).max);

// SAFE
token.approve(spender, exactAmount);

3. No Floating Point in Solidity

Use basis points (1 bp = 0.01%):

// BAD: This equals 0
uint256 fivePercent = 5 / 100;

// GOOD: Basis points
uint256 FEE_BPS = 500; // 5% = 500 basis points
uint256 fee = (amount * FEE_BPS) / 10000;

4. Reentrancy Attacks

External calls can call back into your contract:

// SAFE: Checks-Effects-Interactions pattern
function withdraw() external nonReentrant {
    uint256 bal = balances[msg.sender];
    balances[msg.sender] = 0; // Effect BEFORE interaction
    (bool success,) = msg.sender.call{value: bal}("");
    require(success);
}

Always use OpenZeppelin's ReentrancyGuard.

5. Never Use DEX Spot Prices as Oracles

Flash loans can manipulate spot prices instantly:

// SAFE: Use Chainlink
function getPrice() internal view returns (uint256) {
    (, int256 price,, uint256 updatedAt,) = priceFeed.latestRoundData();
    require(block.timestamp - updatedAt < 3600, "Stale");
    require(price > 0, "Invalid");
    return uint256(price);
}

6. Vault Inflation Attack

First depositor can steal funds via share manipulation:

// Mitigation: Virtual offset
function convertToShares(uint256 assets) public view returns (uint256) {
    return assets.mulDiv(totalSupply() + 1e3, totalAssets() + 1);
}

7. Use SafeERC20

Some tokens (USDT) don't return bool on transfer:

import "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
using SafeERC20 for IERC20;

token.safeTransfer(to, amount); // Handles non-standard tokens

Scaffold-ETH 2 Development

Project Structure

packages/
├── foundry/              # Smart contracts
│   ├── contracts/        # Your Solidity files
│   └── script/           # Deploy scripts
└── nextjs/
    ├── app/              # React pages
    └── contracts/        # Generated ABIs + externalContracts.ts

Essential Hooks

// Read contract data
const { data } = useScaffoldReadContract({
  contractName: "YourContract",
  functionName: "greeting",
});

// Write to contract
const { writeContractAsync } = useScaffoldWriteContract("YourContract");

// Watch events
useScaffoldEventHistory({
  contractName: "YourContract",
  eventName: "Transfer",
  fromBlock: 0n,
});

SpeedRun Ethereum Challenges

Reference these for hands-on learning:

DeFi Protocol Patterns

Uniswap (AMM)

• •Constant product formula: x * y = k
• •Slippage protection required
• •LP tokens represent pool share

Aave (Lending)

• •Supply collateral, borrow assets
• •Health factor = collateral value / debt value
• •Liquidation when health factor < 1

ERC-4626 (Tokenized Vaults)

• •Standard interface for yield-bearing vaults
• •deposit/withdraw with share accounting
• •Protect against inflation attacks

Security Review Checklist

Before deployment, verify:

• • Access control on all admin functions
• • Reentrancy protection (CEI + nonReentrant)
• • Token decimal handling correct
• • Oracle manipulation resistant
• • Integer overflow handled (0.8+ or SafeMath)
• • Return values checked (SafeERC20)
• • Input validation present
• • Events emitted for state changes
• • Incentives designed for maintenance functions

Response Guidelines

When helping developers:

1. •Follow the fork workflow - Always use yarn fork, never yarn chain
2. •Answer directly - Address their question first
3. •Show code - Provide working examples
4. •Warn about gotchas - Proactively mention relevant pitfalls
5. •Reference challenges - Point to SpeedRun Ethereum for practice
6. •Ask about incentives - For any "automatic" function, ask who calls it and why