ConstaPool

ConstaPool is a Rust library implementing a constant product liquidity pool model, based on the formula a * b = k. This model is widely used in decentralized finance (DeFi) for automated market making, allowing for efficient and decentralized token swaps.

Features

• Constant Product Formula: Implements the liquidity pool mechanism where the product of reserves remains constant during trades.
• Slippage Management: Handles slippage control to prevent significant price deviations during trades.
• Simulations: Provides functions to simulate trades without executing them, enabling users to estimate costs and returns.
• Error Handling: Comprehensive error handling using the thiserror crate, covering common pool errors such as insufficient funds, overflow, and invalid amounts.

Usage

Here’s a basic example of how to use ConstaPool:

use consta_pool::{LiquidityPool, PoolError};

fn main() -> Result<(), PoolError> {
    // Create a new liquidity pool with specified reserves
    let mut pool = LiquidityPool::new(30 * 10u64.pow(9), 1_000_000_000 * 10u64.pow(6))?;

    // Buy tokens from the pool
    let token_amount = 1_000_000 * 10u64.pow(6); // Buying 1,000,000 tokens
    let native_spent = pool.buy_tokens(token_amount, None)?;
    println!("Spent {} native to buy {} tokens", native_spent, token_amount);

    // Sell tokens back to the pool
    let native_received = pool.sell_tokens(token_amount, None)?;
    println!("Sold {} tokens to receive {} native", token_amount, native_received);

    Ok(())
}

API Overview

• Creating a Pool: Initialize a liquidity pool with specified native and token reserves.
• Buying Tokens: Buy tokens from the pool with buy_tokens(token_amount, max_native), where max_native is an optional slippage limit.
• Selling Tokens: Sell tokens back to the pool with sell_tokens(token_amount, min_native), where min_native is an optional slippage limit.
• Simulations: Use simulate_buy_tokens and simulate_sell_tokens to estimate the costs or returns of trades without executing them.
• Error Handling: ConstaPool uses the thiserror crate to provide detailed error handling, including:
  • SlippageExceeded: Indicates that the trade exceeded the acceptable slippage limit.
  • InsufficientPoolFunds: Indicates insufficient funds in the pool to complete the trade.
  • InvalidAmount: Indicates an invalid amount provided, such as zero or negative values.
  • Overflow: Indicates arithmetic overflow, usually when dealing with large numbers.

License

This project is licensed under the terms of the MIT License.