Confidential Workflows | Solange Gueiros at ETHOnline 2026

So, congratulations to everyone. This hackathon is special for us because we encourage you to not only learn the theory, but also use confidential workflows. This will be a huge opportunity for you, as confidential workflows are a new feature that is still in beta, so you can get access to it before others. So, let's start with the prizes, since all the links I'm using today are here. So if you go to our prizes page, that's the best way to get started.

You see, I would like to refresh the page. So you can create a confidential workflow. Two teams will receive one key each. And what is the idea? A confidential workflow is a way to protect your secrets in an environment.

Imagine we have a shared environment, a workflow, but you have something that you don't share with all the decentralized oracle networks, you don't share with the DAO. So we use TEE for this. And this is a use case, for example, creating a smart contract that can be easily verified. Or automated protection against liquidation. We have another contest about this as well.

Or creating a confidential portfolio rebalancing. And these are all ideas you could use. These are requirements, but this is the most important part for you right now. We have something interesting here regarding documentation and bootcamp. And I'll start with bootcamp.

The material I have here is the same as what I discovered here same as what I discovered here , because that's all you need. We held a bootcamp last week. Two days and you have a lot to learn here. Exactly what we talked about earlier. An on- chain execution environment is a new way of thinking where you build your project thinking not just about the smart just about the smart contract itself, but about the complete workflow with everything you want to do with on-chain actions, as well as everything you might have off-chain, and you connect everything together.

Of course? We have concepts there. And after that, you'll learn why it should be confidential. So, why confidential calculations and what do we decide. We want to protect your risk thresholds or strategies, your credentials, and our own models and logic that are in your project.

Of course? This is our goal. And, as I said goal. And, as I said , we are working in a TEE, or trusted execution environment execution environment . And there are some that can be used in the future.

We currently have one on Amazon, and another in the future. So, here's what you have and how you can do it. I wo n't go into it now because you have a bootcamp: 2 days of 2 hours on YouTube days of 2 hours on YouTube . You have everything you need. Here you have the first day and then you can move on to the second day, okay?

And all the content is here too, okay? The first case study we showed last week was an AI audit file. You can do it. The second will be automated will be automated . So, this is the first one.

The second is automated protection against liquidation. That's him. But for that, I have an additional task for you. And if you go back to our prizes, you'll see that we have a task for automated liquidation protection. And I'll talk about it in more detail here.

Because you should do it like in a grocery environment. And that will be really cool. What is the goal? The challenge is for you to create your own strategy, your own workflow to protect against liquidation. And then you deploy that strategy in what we call a private environment.

Let's talk about the private environment first. So, I have a "hello world" workflow here so you can understand how it works. Before you get this, it's important to request deployment access, okay? I will tell you about that too. So, the workflow...

Here's how you can deploy the workflow, okay workflow, okay ? It's important to prepare the environment first, this is a basic point, but the most important thing is that you have some API secrets, I have almost nothing here , but you must have your strategy and your API secrets. And then you can deploy everything like we did here, okay? After that, you have time until the hackathon deadline to create your strategy and deploy your workflow. When is the deadline, okay?

The time will come to evaluate the results, and then you will no longer be able to change your workflow. At this point, we at Chain Reaction Labs will start running simulations to see if your strategy can survive. So what will it be? Let's move on to the project itself. If I come back here and go to the task itself, that's my repository there.

And it's the second one that actually works. You need to structure your workflow to avoid liquidation while trying to keep the loan open as long as possible for cost and time. You have reserve capital, so use it effectively. And it's important to keep the rules and your credentials secret, okay? This will be the goal.

Here is an example for you. You can create such a strategy. For example, when the health factor is below 1.08, you can pay off part or add more collateral. You can choose can choose any option you want.

OK? You work with our smart contracts for lending and borrowing with liquidation. OK? So let's get straight to this contract. This is a local version.

I'm not sure exactly where I am . Let's see. I guess I need to run this again. Wait a minute. Yes.

Running npm. Okay, let's run this again. So, I'm launching. And I have no idea what address I am at now. Let's wait.

Here we are. And all of this, if you want to see it in the frontend, you can do that, no problem. Let's see which lending address is official. I'm not sure which one. Let's see.

Here I see a smart Here I see a smart contract for virtual tasks. Is that him? Good. This is the contract itself. You can check this contract.

It was deployed a few minutes ago. I just updated it. So I want to use this address. And I can just update the address there because you deployed the real contract and I'm testing on that. But how can you test your own strategy before using the real one?

Deploy all these contracts like virtual ETH, virtual USD, and virtual lending contract, then test as you need. Ultimately, you have to adhere to the official script. It is not open yet and I am opening the official one now. So let's open it up for you. It has to come out.

I think I'm at the right address, I'm opening this address, I'm opening this , so only I can do this. Once I open, you can join. So, we start now. You can officially join officially join . When the transaction is completed, let's wait.

Almost done. So, now this is the official version. And I'll join, I'll be a hacker like you. Oh, I think I need to refresh the page here. OK.

You and I can join in too. So, join the challenge. You should do this, if it allows you to participate, join the challenge. What happens when you decide to join the challenge? You will receive some ETH and automatically borrow some veto USD.

So, this is how it is . I need to correct something here. I guess I'll deploy this contract again in a few minutes, okay? But you have to have five ETH in collateral and five ETH here. I don't know why everything is so crazy here.

I'll fix it in a few minutes, okay? And then you will have 7 thousand USD in your wallet, okay? And it will be like this. After that, you should—and this is the automatic part that your strategy does. So, in our strategy, you should act like this: if the price fell by 50%, what do I want to do?

I want to add more collateral. I want to pay off the debt. What should I do? Or okay, my risk ratio is now 1.11.

I'm, like, a risky guy, so I want to increase my risk factor. I want to borrow more. I could borrow more. It's simple. So you can do it too .

Borrow more, okay? And you can create your own strategy to maximize your debt and survive without being liquidated. And when the price starts changing—if I start changing the price now, and someone joins now and someone else joins later, we won't be in the same time frame. So, because of that, we'll only start when the hackathon application deadline is over, okay? So, okay, we've reached the application deadline.

After that, over the next 48 hours, I will be changing the price a lot. And not exactly me, we already have a ready-made script for this. And the price will change, for example, a little up, a little down, and we can make such price changes. I have to update this because you don't have it anymore, okay? Now you only have debt.

And these could be the scripts I plan to run. We can make a gradual price reduction. You can make a sudden collapse. The price can go down and up again. We can do something similar.

Here are some ideas, okay? And the goal is to have your strategy ready for such scenarios. So, what can you do before the hackathon deadline? Create your own strategy and your own set of contracts so you can test it. When everything goes well, you will be able to join the hackathon and participate in the official one.

And then we'll check our workflow, okay workflow, okay ? How can we check you? You can only check those who have joined here, okay? So remember, I have some adjustments to make today. We...

You can join starting tomorrow, okay? I'm still making some final adjustments. I'm not sure if it's the frontend or if I added the wrong contract. I have to check this out, okay? But that's how we work, okay?

So okay, I would like to participate, how do I get started? First, you need to deploy your own smart own smart contracts. I did it in Remix, but if you go here, we have a script here as well. In some of them, like this one, I have a deployment script with Hardhat so you can deploy three contracts at once contracts at once , for example deploy two tokens, challenge, and also don't forget to give challenge minter rights for both tokens, okay? So that you can better understand the challenge contract itself.

Let's use this part here. For example, when you join, what happens? Join us. Here it is Join us. Here it is .

When you join, something like this happens. We mint from 10 thousand... mint from 10 thousand... no, from 10 ETH, we mint 5 ETH for you into your wallet, and the 5 becomes the initial collateral for your position. We also mint your debt.

Good? Those 7 thousand. After that, we will mint the 5 thousand that you contributed to the contract for the contract itself. And you also update your positions. It will look like this.

So, this is your position. But do you see how you can get virtual ETH or virtual USD? Virtual ETH and virtual USD will be credited to you when you join the position. And you can't, like with real ones, mint them any more. At least, no more virtual ETH.

You only have what we gave you when you joined the position. And if you use this, the total is 10 ETH, you should dispose of it as you wish, okay? That's the main purpose of this That's the main purpose of this , okay? And also, if you can see here the actions you can take and the leaderboard here. I'm updating this a little bit to understand how the score is calculated, what's going on there.

So, to understand this part as well, you can see in this smart contract how you calculate the health factor. It's as common as Aave and others. And we can eliminate you. Oh, one point about liquidation. Remember, this piece is from us at Chainlink.

I mean, just to start the scenarios, remember when the hackathon deadline comes. Then I have hours to run some scripts. But the scenarios will be something like this . I can update the price to 1950, or something like that. I can update the price in one transaction and check the liquidations in the next one, for example, in the next block.

You are not in one transaction, so you have some time to act. This is our goal. But it could happen in five blocks, maybe in one block, or maybe in five minutes. So you don't know the time gap between the price update and the attempt to liquidate you. So, you need to be smart in your strategy to rebalance your position as quickly as possible.

How can you balance your position? You can check your position every minute, every 5 minutes, or every time the price changes every time the price changes . Because if you're thinking about changing the price, how can I check it? If I go here, you'll see the price here. When I update the price, I send an event called "price update".

So you can use this as a trigger to resume your actions. Or you can run them every minute, every 5 minutes, something like that. Good? Also, for inspiration, this doesn't have to be the last one, but in our smart our smart contract I have an example here. I prefer to open this in VS Code.

So here, if I go over to automated liquidation protection, you can read up and better understand how it works. This is your workflow setup. This has already been provided to you for deployment in a private environment later, okay? This will be your productive environment in the end. You must do this before the hackathon ends.

And then, if I go here, yes, that's the main thing. You can see that in my project I decided to use a cron trigger. What does my cron my cron trigger look like? I can check, for example, in a test environment test environment that my cron trigger runs every 5 minutes. But maybe that's too risky because I told you I was updating the price per block.

It may be less than 5 minutes until the next update. So you could change this to have a trigger not a cron but an HTTP trigger not a cron but an HTTP trigger. And it is based on an event. And the event is a price update. I didn't do it on purpose because it's your job.

I created a cron trigger just so you have some sort of base to start with. Another point I would like to show is how I set up secrets. This is very important for you. So where are the secrets? The secrets should be right here, here, here, and here.

Oh, they're in another file of mine, but you have to understand how secrets work, okay? So, here are those secrets. This is an example of an .env file there. And you see that I decided that I wanted to make some intervention when the liquidation is 1.

15. Of course? This is something I could do. I would like to repay 15% like to repay 15% or deposit another three eights. Oh, one more point for you.

All decimal places for these two virtual tokens are only two. We don't use 18 decimal places like we normally do. We only use two to make it better for visualization, but it's tricky because it's more sensitive to you when you achieve something, okay? And these are the parameters that will be in the secrets section in the secrets section , okay? So this is important for you.

So, what else do I have to ask you now? Oh, it's important that you also have more details in the readme file. All the details of the strategies, how you can initiate a position, and how it...Oh, that's another important thing, but it's better to look at it there, in the readme file. If you come here, I...

let's go to the readme. So, here we are. If you have any doubts, let's take a few minutes right now to dispel them. And what is this dispel them. And what is this ?

Because this is the main way we verify and determine the winner determine the winner . This will be the continuity of assets (lower continuity). This is the sum of your debt and the length of the interval the length of the interval . Everyone starts at the same time. This is the moment when the hackathon ends.

And then we start running simulations, that is, running scenarios. We verify that you start with the same assets. Everyone starts with the same assets and at the same time. Then at the end we check the status of your assets and how long you lasted. This is the continuity of assets that we are checking.

Of course? We have some points that we are still adjusting to make the system the best it can be. But here you can see some weighting factors that we also try to take into account. So, we look at your liquidation protection and asset continuity. We also check how many actions you have completed.

So the person who has completed fewer actions and has better asset continuity can also win. That's it. This is a real task, and if it works well here, you can later use it in a real Aave or another lending protocol, okay? And this is a way we can start. To help you out, you saw that I have an interface here to check certain things.

You are free to use this interface or create your own if you wish. In the interface itself, it's important where I deployed my three contracts: my token, my virtual ETH, my virtual USD, and the lending change to use them during this week before the deadline, okay? How can I use them here in the interface? You saw that I can update them here, but you can update them directly in the interface. And this is in the address.

So, we've updated them here, and they appear right for you in your interface. Of course? So, this is one of our tasks. We just talked about this challenge, this new one, the automatic elimination protection challenge, because it depends not only on what you build during development, but also after it. You should create a passive strategy now, and we will try to test your strategy.

We run scenarios within 24 hours of that. Good? But also, what is our 30th challenge for you? If you already have a project and want to add Chainlink to it, you have a prize for that too. So, these are the continuity track participants.

You can add anything to your project that you already have and you will also meet the requirements of this track. So remember, we have three tracks for you. As a first, best confidential workflow. workflow. Any workflow, not necessarily automated, protection against liquidation.

Use anything Use anything . You can add Chainlink to a project you already have and participate in the automated liquidation protection competition. You have to deploy a smart contract, okay smart contract, okay ? This is an important point. And we've already sent this to our Discord and we're sending it again.

I will include a link to the form so you can also request access to the deployment. Good? Let's see if you have any questions. Yes, tell me. I'm checking the chat now.

Yes. Emmanuel, look, um...a challenge for the group, okay? So, you're doing a deployment, and everything you submit is from your group. And, well, it's one address that everything runs from, but it has to be for your group, okay?

Excellent question.