> For the complete documentation index, see [llms.txt](https://cryptodao-it.gitbook.io/c-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cryptodao-it.gitbook.io/c-dao/3.-technical/architecture.md).

# Architecture

## Design Philosophy

Crypto DAO V3 Pro uses a modular architecture where:

* Each component is independent
* Components communicate through defined interfaces
* Failure in one component doesn't cascade to others

This is the **Bophades Framework** — a sharded smart contract system.

## The Three Layers

```
┌─────────────────────────────────────────┐
│              KERNEL                      │
│   (Coordination & Authority Control)     │
├─────────────────────────────────────────┤
│              MODULES                     │
│   Treasury │ Staking │ RBS │ Structure  │
├─────────────────────────────────────────┤
│              POLICIES                    │
│   (Business Logic & Parameter Control)   │
└─────────────────────────────────────────┘
```

### Kernel

The operating system of the protocol:

* Manages permissions between modules
* Controls upgrade paths
* Coordinates cross-module operations
* Single source of authority truth

### Modules (Shards)

Independent smart contracts for each function:

| Module    | Responsibility                           |
| --------- | ---------------------------------------- |
| Treasury  | Asset storage, minting authority         |
| Staking   | Rebase calculation, user positions       |
| RBS       | Price monitoring, intervention execution |
| Structure | Relationships, permissions               |

Each module:

* Has isolated state
* Cannot directly modify other modules
* Communicates only through Kernel
* Can be upgraded independently

### Policies

Business logic layer:

* Rebase rate calculations
* Discount algorithms
* Circuit breaker triggers
* Parameter adjustments

## Permission Model

Unlike typical contracts where ownership is per-contract, Crypto DAO defines ownership at the protocol level:

```
Kernel
   ↓
Defines what can call what
   ↓
Modules respect Kernel authority
   ↓
Policies execute within boundaries
```

## Sharding Benefits

| Benefit            | Explanation                                |
| ------------------ | ------------------------------------------ |
| **Isolation**      | Bug in Module A doesn't affect Module B    |
| **Upgradeability** | Update one module without touching others  |
| **Auditability**   | Smaller, focused contracts easier to audit |
| **Security**       | Attack surface limited to single module    |

## Data Flow Example: Staking Reward

{% stepper %}
{% step %}

### User stakes PRO

Staking Module records position.
{% endstep %}

{% step %}

### Rebase calculation

Policy calculates reward amount.
{% endstep %}

{% step %}

### Treasury minting requested

Kernel verifies Staking can request from Treasury.\
Treasury mints PRO (backed by reserves).
{% endstep %}

{% step %}

### Distribution

Staking Module updates user balance and the user sees increased stake.
{% endstep %}
{% endstepper %}

Each step involves specific modules with defined permissions.

## Contract Relationships

```
┌─────────────┐     ┌─────────────┐
│  Treasury   │◄────│   Kernel    │────►│  Staking   │
└─────────────┘     └─────────────┘     └────────────┘
       ▲                   │
       │                   ▼
       │            ┌─────────────┐
       └────────────│     RBS     │
                    └─────────────┘
```

## Security by Design

{% stepper %}
{% step %}

### No direct access

Users interact through defined entry points.
{% endstep %}

{% step %}

### Permission checks

Every cross-module call is verified by Kernel.
{% endstep %}

{% step %}

### State isolation

Modules cannot read/write other modules' state directly.
{% endstep %}

{% step %}

### Multi-sig gates

Critical operations require multiple signatures.
{% endstep %}
{% endstepper %}

## Detailed Contract Documentation

* [Kernel](broken://pages/78bb87486af012aecf9c2fdadbae73ab46616d22)
* [Treasury Module](broken://pages/7f04be3808571a624051b9e652b22d2ca0076012)
* [Staking Module](broken://pages/215a4ebd2e3923285c4f3766bf46ee4b0dba2e0f)
* [RBS Module](broken://pages/1ab75aba7edc8cc8ff84f2430667426cdbec738d)

## Related

* [Security Overview](broken://pages/ff14e88ad13228ced9991e2cfa77a9a3582081fd)
* [Integration Guide](broken://pages/6481cb33650566697a7207aa5a60a45a9ca46c2e)


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