tycho-simulation 0.255.1

Provides tools for interacting with protocol states, calculating spot prices, and quoting token swaps.
Documentation
use alloy::primitives::U256;

use super::{
    constants::{BONE, U256_1, U256_10E_10, U256_2},
    error::CowAMMError,
};

// https://github.com/darkforestry/amms-rs/blob/main/src/amms/balancer/bmath.rs
pub fn btoi(a: U256) -> U256 {
    a / BONE
}

#[inline]
pub fn badd(a: U256, b: U256) -> Result<U256, CowAMMError> {
    let c = a + b;
    if c < a {
        return Err(CowAMMError::AddOverflow);
    }
    Ok(c)
}

#[inline]
pub fn bpowi(a: U256, n: U256) -> Result<U256, CowAMMError> {
    let mut z = if n % U256_2 != U256::ZERO { a } else { BONE };

    let mut a = a;
    let mut n = n / U256_2;
    while n != U256::ZERO {
        a = bmul(a, a)?;
        if n % U256_2 != U256::ZERO {
            z = bmul(z, a)?;
        }
        n /= U256_2;
    }
    Ok(z)
}

#[inline]
pub fn bpow(base: U256, exp: U256) -> Result<U256, CowAMMError> {
    let whole = bfloor(exp);
    let remain = bsub(exp, whole)?;
    let whole_pow = bpowi(base, btoi(whole))?;
    if remain == U256::ZERO {
        return Ok(whole_pow);
    }
    let precision = BONE / U256_10E_10;
    let partial_result = bpow_approx(base, remain, precision)?;
    bmul(whole_pow, partial_result)
}

#[inline]
pub fn bpow_approx(base: U256, exp: U256, precision: U256) -> Result<U256, CowAMMError> {
    let a = exp;
    let (x, xneg) = bsub_sign(base, BONE);
    let mut term = BONE;
    let mut sum = term;
    let mut negative = false;
    let mut i = U256_1;
    while term >= precision {
        let big_k = U256::from(i) * BONE;
        let (c, cneg) = bsub_sign(a, bsub(big_k, BONE)?);
        term = bmul(term, bmul(c, x)?)?;
        term = bdiv(term, big_k)?;
        if term == U256::ZERO {
            break;
        }
        negative ^= xneg ^ cneg;
        if negative {
            sum = bsub(sum, term)?;
        } else {
            sum = badd(sum, term)?;
        }
        i += U256_1;
    }
    Ok(sum)
}

#[inline]
pub fn bfloor(a: U256) -> U256 {
    btoi(a) * BONE
}

// Reference:
// https://github.com/balancer/balancer-core/blob/f4ed5d65362a8d6cec21662fb6eae233b0babc1f/contracts/BNum.sol#L75
#[inline]
pub fn bdiv(a: U256, b: U256) -> Result<U256, CowAMMError> {
    if b == U256::ZERO {
        return Err(CowAMMError::DivZero);
    }
    let c0 = a * BONE;
    if a != U256::ZERO && c0 / a != BONE {
        return Err(CowAMMError::DivInternal);
    }
    let c1 = c0 + (b / U256_2);
    if c1 < c0 {
        return Err(CowAMMError::DivInternal);
    }
    Ok(c1 / b)
}

// Reference:
// https://github.com/balancer/balancer-core/blob/f4ed5d65362a8d6cec21662fb6eae233b0babc1f/contracts/BNum.sol#L43
#[inline]
pub fn bsub(a: U256, b: U256) -> Result<U256, CowAMMError> {
    let (c, flag) = bsub_sign(a, b);
    if flag {
        return Err(CowAMMError::SubUnderflow);
    }
    Ok(c)
}

// Reference:
// https://github.com/balancer/balancer-core/blob/f4ed5d65362a8d6cec21662fb6eae233b0babc1f/contracts/BNum.sol#L52
#[inline]
pub fn bsub_sign(a: U256, b: U256) -> (U256, bool) {
    if a >= b {
        (a - b, false)
    } else {
        (b - a, true)
    }
}

// Reference:
// https://github.com/balancer/balancer-core/blob/f4ed5d65362a8d6cec21662fb6eae233b0babc1f/contracts/BNum.sol#L63C4-L73C6
#[inline]
pub fn bmul(a: U256, b: U256) -> Result<U256, CowAMMError> {
    let c0 = a * b;
    if a != U256::ZERO && c0 / a != b {
        return Err(CowAMMError::MulOverflow);
    }
    let c1 = c0 + (BONE / U256_2);
    if c1 < c0 {
        return Err(CowAMMError::MulOverflow);
    }
    Ok(c1 / BONE)
}

/// Calculates the spot price of a token in the pool.
///
/// # Description
/// Computes the spot price `sP` of an input token relative to an output token,
/// based on the current balances, weights, and swap fee.
///
/// # Parameters
/// - `token_balance_in` (`bI`): Balance of the input token in the pool.
/// - `token_weight_in` (`wI`): Weight of the input token.
/// - `token_balance_out` (`bO`): Balance of the output token in the pool.
/// - `token_weight_out` (`wO`): Weight of the output token.
/// - `swap_fee` (`sF`): Swap fee of the pool.
///
/// # Returns
/// - `spot_price` (`sP`): Current spot price of the input token in terms of the output token.
///
/// # Formula
/// ```text
/// sP = (bI / wI) / (bO / wO) * (1 / (1 - sF))
///
/// where:
/// bI = token_balance_in
/// wI = token_weight_in
/// bO = token_balance_out
/// wO = token_weight_out
/// sF = swap_fee
/// ```
pub fn calculate_price(
    b_i: U256,
    w_i: U256,
    b_o: U256,
    w_o: U256,
    s_f: U256,
) -> Result<U256, CowAMMError> {
    let numer = bdiv(b_i, w_i)?;
    let denom = bdiv(b_o, w_o)?;
    let ratio = bdiv(numer, denom)?;
    let scale = bdiv(BONE, bsub(BONE, s_f)?)?;
    bmul(ratio, scale)
}

/// Calculates the output amount of a token given an input amount for a swap.
///
/// # Description
/// This function computes `token_amount_out` given `token_amount_in`, taking into account
/// the pool balances, token weights, and swap fee.
///
/// # Parameters
/// - `token_balance_in`: Balance of the input token in the pool (`bI`).
/// - `token_weight_in`: Weight of the input token (`wI`).
/// - `token_balance_out`: Balance of the output token in the pool (`bO`).
/// - `token_weight_out`: Weight of the output token (`wO`).
/// - `token_amount_in`: Amount of input token (`aI`).
/// - `swap_fee`: Swap fee of the pool (`sF`).
///
/// # Returns
/// - `token_amount_out` (`aO`): Amount of output token for the swap.
///
/// # Formula
/// ```text
/// aO = token_amount_out
/// bO = token_balance_out
/// bI = token_balance_in
/// aI = token_amount_in
/// wI = token_weight_in
/// wO = token_weight_out
/// sF = swap_fee
///
/// aO = bO * (1 - (bI / (bI + aI * (1 - sF))) ^ (wI / wO))
/// ```
pub fn calculate_out_given_in(
    token_balance_in: U256,
    token_weight_in: U256,
    token_balance_out: U256,
    token_weight_out: U256,
    token_amount_in: U256,
    swap_fee: U256,
) -> Result<U256, CowAMMError> {
    let weight_ratio = bdiv(token_weight_in, token_weight_out)?;
    let adjusted_in = bsub(BONE, swap_fee)?;
    let adjusted_in = bmul(token_amount_in, adjusted_in)?;
    let y = bdiv(token_balance_in, badd(token_balance_in, adjusted_in)?)?;
    let x = bpow(y, weight_ratio)?;
    let z = bsub(BONE, x)?;
    bmul(token_balance_out, z)
}

/// Computes how many tokens must be sent to a pool in order to take `token_amount_out`,
/// given the current balances and price bounds.
///
/// # Description
/// Calculate the amount of token in given the amount of token out for a swap.
///
/// # Parameters
/// - `token_balance_in`: The balance of the input token in the pool.
/// - `token_weight_in`: The weight of the input token in the pool.
/// - `token_balance_out`: The balance of the output token in the pool.
/// - `token_weight_out`: The weight of the output token in the pool.
/// - `token_amount_out`: The amount of the output token.
/// - `swap_fee`: The swap fee of the pool.
///
/// # Returns
/// - `token_amount_in`: The amount of token in given the amount of token out for a swap.
///
/// # Formula
/// ```text
/// aI = token_amount_in
/// bO = token_balance_out               /  /     bO      \    (wO / wI)      \
/// bI = token_balance_in          bI * |  | ------------  | ^            - 1  |
/// aO = token_amount_out    aI =        \  \ ( bO - aO ) /                   /
/// wI = token_weight_in           --------------------------------------------
/// wO = token_weight_out                          ( 1 - sF )
/// sF = swap_fee
/// ```
#[allow(clippy::disallowed_names)]
pub fn calculate_in_given_out(
    token_balance_in: U256,
    token_weight_in: U256,
    token_balance_out: U256,
    token_weight_out: U256,
    token_amount_out: U256,
    swap_fee: U256,
) -> Result<U256, CowAMMError> {
    let weight_ratio = bdiv(token_weight_out, token_weight_in)?;
    let diff = bsub(token_balance_out, token_amount_out)?;
    let y = bdiv(token_balance_out, diff)?;
    let mut foo = bpow(y, weight_ratio)?;
    foo = bsub(foo, BONE)?;
    let mut token_amount_in = bsub(BONE, swap_fee)?;
    token_amount_in = bdiv(bmul(token_balance_in, foo)?, token_amount_in)?;
    Ok(token_amount_in)
}