SentinelFi

SentinelFi is an autonomous safety layer designed to protect DeFi stablecoin protocols from under-collateralization.
Many stablecoins rely on collateral reserves to maintain their value, but if reserves drop unexpectedly or reporting fails, protocols may continue minting unbacked tokens. This can lead to catastrophic failures similar to past stablecoin collapses.
SentinelFi solves this problem by continuously monitoring reserve data using Chainlink Proof of Reserve through a Chainlink CRE workflow. The system periodically fetches reserve data from an external source and verifies the collateral backing of the protocol.
Based on this data, SentinelFi calculates a health ratio between the total reserves and the minted supply. If the ratio falls below a defined threshold, the protocol automatically triggers a circuit breaker that freezes minting operations until reserves return to a safe level.
The platform includes a monitoring dashboard that visualizes system health, reserve reports, and protocol activity. Users can also simulate different reserve scenarios to observe how the protocol reacts in healthy, warning, and critical states.
By combining automated monitoring, decentralized oracle verification, and protocol-level safety mechanisms, SentinelFi helps ensure that stablecoins remain transparent, fully backed, and resistant to reserve manipulation.

SentinelFi is built as a full-stack application combining smart contracts, a Chainlink CRE workflow, and a monitoring dashboard.
The smart contract layer is deployed on Ethereum Sepolia and manages the stablecoin supply, reserve checks, and circuit breaker logic. The protocol automatically restricts minting when the health ratio drops below the safety threshold.
A Chainlink CRE workflow runs periodically to fetch reserve data from an external API source. The workflow performs confidential HTTP requests, aggregates responses using a BFT median consensus mechanism across multiple nodes, and writes a signed report to the smart contract on-chain.
The frontend dashboard is built to visualize protocol activity and system health. It displays key metrics such as reserve balance, minted supply, health ratio, and reserve reports. The dashboard also includes a simulation environment where users can test different reserve scenarios and observe how SentinelFi reacts.
The system architecture includes:
• Smart contracts for stablecoin control and circuit breaker logic
• Chainlink CRE workflow for decentralized reserve verification
• External API integration for reserve data sources
• A frontend dashboard for monitoring and simulation
Together these components create an automated safety layer for DeFi stablecoin protocols.