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// We make sure this pallet uses `no_std` for compiling to Wasm.
#![cfg_attr(not(feature = "std"), no_std)]
// Re-export pallet items so that they can be accessed from the crate namespace.
use frame_support::pallet_prelude::*;
use frame_support::traits::fungible;
use frame_support::traits::fungibles;
use frame_support::PalletId;
use pallet::*;
use sp_runtime::traits::{AccountIdConversion, CheckedDiv, CheckedMul, IntegerSquareRoot, Zero};
// FRAME pallets require their own "mock runtimes" to be able to run unit tests. This module
// contains a mock runtime specific for testing this pallet's functionality.
#[cfg(test)]
mod mock;
// This module contains the liqiudity pool logic
mod liquidity_pool;
// Re-export pallet items so that they can be accessed from the crate namespace.
pub use pallet::*;
#[cfg(test)]
mod tests;
// Define type aliases for easier access
pub type AccountIdOf<T> = <T as frame_system::Config>::AccountId;
pub type AssetIdOf<T> = <<T as Config>::Fungibles as fungibles::Inspect<
<T as frame_system::Config>::AccountId,
>>::AssetId;
pub type BalanceOf<T> = <<T as Config>::NativeBalance as fungible::Inspect<
<T as frame_system::Config>::AccountId,
>>::Balance;
pub type AssetBalanceOf<T> = <<T as Config>::Fungibles as fungibles::Inspect<
<T as frame_system::Config>::AccountId,
>>::Balance;
// All pallet logic is defined in its own module and must be annotated by the `pallet` attribute.
#[frame_support::pallet]
pub mod pallet {
// Import various useful types required by all FRAME pallets.
use super::*;
use crate::liquidity_pool::LiquidityPool;
use frame_support::traits::fungibles::Mutate;
use frame_support::traits::tokens::{Fortitude, Precision, Preservation};
use frame_system::pallet_prelude::*;
// The `Pallet` struct serves as a placeholder to implement traits, methods and dispatchables
// (`Call`s) in this pallet.
#[pallet::pallet]
pub struct Pallet<T>(_);
/// The pallet's configuration trait.
#[pallet::config]
pub trait Config: frame_system::Config {
/// The overarching runtime event type.
type RuntimeEvent: From<Event<Self>> + IsType<<Self as frame_system::Config>::RuntimeEvent>;
// Type to access the Balances Pallet
type NativeBalance: fungible::Inspect<Self::AccountId>
+ fungible::Mutate<Self::AccountId>
+ fungible::hold::Inspect<Self::AccountId>
+ fungible::hold::Mutate<Self::AccountId>
+ fungible::freeze::Inspect<Self::AccountId>
+ fungible::freeze::Mutate<Self::AccountId>;
// Type to access the Assets Pallet
type Fungibles: fungibles::Inspect<Self::AccountId, AssetId = u32>
+ fungibles::Mutate<Self::AccountId>
+ fungibles::Create<Self::AccountId>;
#[pallet::constant]
type PalletId: Get<PalletId>;
}
/// A storage map for storing liquidity pools
#[pallet::storage]
pub type LiquidityPools<T: Config> =
StorageMap<_, Blake2_128Concat, (AssetIdOf<T>, AssetIdOf<T>), LiquidityPool<T>>;
/// Storage map for storing mapping of liquidity token to asset pair
#[pallet::storage]
pub type LiquidityTokens<T: Config> =
StorageMap<_, Blake2_128Concat, AssetIdOf<T>, (AssetIdOf<T>, AssetIdOf<T>), ValueQuery>;
/// Events that functions in this pallet can emit.
#[pallet::event]
#[pallet::generate_deposit(pub(super) fn deposit_event)]
pub enum Event<T: Config> {
/// Liquidity pool created.
/// Parameters:
/// - `T::AccountId`: The account ID of the liquidity provider who created the pool.
/// - `(T::AssetId, T::AssetId)`: The trading pair of the created liquidity pool.
LiquidityPoolCreated(AccountIdOf<T>, (AssetIdOf<T>, AssetIdOf<T>)),
/// Liquidity minted.
/// Parameters:
/// - `T::AccountId`: The account ID of the liquidity provider who minted the liquidity.
/// - `(T::AssetId, T::AssetId)`: The trading pair of the liquidity pool.
/// - `T::Balance`: The amount of liquidity tokens minted.
LiquidityMinted(
AccountIdOf<T>,
(AssetIdOf<T>, AssetIdOf<T>),
AssetBalanceOf<T>,
),
/// Liquidity burned.
/// Parameters:
/// - `T::AccountId`: The account ID of the liquidity provider who burned the liquidity.
/// - `(T::AssetId, T::AssetId)`: The trading pair of the liquidity pool.
/// - `T::Balance`: The amount of liquidity tokens burned.
LiquidityBurned(
AccountIdOf<T>,
(AssetIdOf<T>, AssetIdOf<T>),
AssetBalanceOf<T>,
),
/// Assets swapped.
/// Parameters:
/// - `T::AccountId`: The account ID of the user who performed the swap.
/// - `T::AssetId`: The ID of the asset that was swapped (sold).
/// - `T::Balance`: The amount of the asset that was swapped (sold).
/// - `T::AssetId`: The ID of the asset that was received (bought).
/// - `T::Balance`: The amount of the asset that was received (bought).
Swapped(
AccountIdOf<T>,
AssetIdOf<T>,
AssetBalanceOf<T>,
AssetIdOf<T>,
AssetBalanceOf<T>,
),
}
/// Errors that can be returned by this pallet.
#[pallet::error]
pub enum Error<T> {
/// cannot have the same asset in a trading pair
CannotHaveSameAssetInPair,
/// Insufficient liquidity available in the pool.
InsufficientLiquidity,
/// Insufficient reserves available in the pool for the requested operation.
InsufficientReserves,
/// Overflow occurred when adding to the reserve balance.
ReserveOverflow,
/// Overflow occurred when adding to the total liquidity.
LiquidityOverflow,
/// The asset being swapped in is not part of the specified trading pair.
InvalidAssetIn,
/// The asset being swapped out is not part of the specified trading pair.
InvalidAssetOut,
/// The reserves for the asset being swapped out is not sufficient.
InsufficientAmountOut,
/// Attempted to perform an operation that resulted in an overflow
ArithmeticOverflow,
/// Attempted to divide by zero
DivisionByZero,
/// The liquidity pool for the specified trading pair already exists.
LiquidityPoolAlreadyExists,
/// The liquidity pool with the provided asset pair not found
LiquidityPoolNotFound,
/// Minted is not greater than or equal to the minimum liquidity specified
InsufficientLiquidityMinted,
/// The liquidity pool does not have enough reserves
InsufficientAmountsOut,
/// There is no liquidity to burn
ZeroLiquidityBurned,
}
/// The pallet's dispatchable functions ([`Call`]s).
#[pallet::call]
impl<T: Config> Pallet<T> {
// Dispatchable call to create a new liquidity pool
#[pallet::call_index(0)]
#[pallet::weight(Weight::default())]
pub fn create_liquidity_pool(
origin: OriginFor<T>,
asset_a: AssetIdOf<T>,
asset_b: AssetIdOf<T>,
liquidity_token: AssetIdOf<T>,
) -> DispatchResult {
// ensure that the origin has been signed
let sender = ensure_signed(origin)?;
let trading_pair = return_vaild_pair_format::<T>(asset_a, asset_b)?;
ensure!(
!LiquidityPools::<T>::contains_key(trading_pair),
Error::<T>::LiquidityPoolAlreadyExists
);
// Create a new liquidity pool
let liquidity_pool = LiquidityPool {
assets: trading_pair,
reserves: (Zero::zero(), Zero::zero()),
total_liquidity: Zero::zero(),
liquidity_token,
};
// Insert the new liquidity pool into the storage
LiquidityPools::<T>::insert(trading_pair, liquidity_pool);
// Insert the liquidity token into the storage
LiquidityTokens::<T>::insert(liquidity_token, trading_pair);
// Log an event indicating that the pool was created
Self::deposit_event(Event::LiquidityPoolCreated(sender, trading_pair));
Ok(())
}
#[pallet::call_index(1)]
#[pallet::weight(Weight::default())]
pub fn mint_liquidity(
origin: OriginFor<T>,
asset_a: AssetIdOf<T>,
asset_b: AssetIdOf<T>,
amount_a: AssetBalanceOf<T>,
amount_b: AssetBalanceOf<T>,
min_liquidity: AssetBalanceOf<T>,
) -> DispatchResult {
let sender = ensure_signed(origin)?;
let trading_pair = return_vaild_pair_format::<T>(asset_a, asset_b)?;
// Get the liquidity pool from storage
let mut liquidity_pool =
LiquidityPools::<T>::get(&trading_pair).ok_or(Error::<T>::LiquidityPoolNotFound)?;
// Calculate the liquidity minted based on the provided amounts and the current reserves
let liquidity_minted = Self::calculate_liquidity_minted(
(amount_a, amount_b),
(liquidity_pool.reserves.0, liquidity_pool.reserves.1),
liquidity_pool.total_liquidity,
)?;
// Ensure that the liquidity minted is greater than or equal to the minimum liquidity specified
ensure!(
liquidity_minted >= min_liquidity,
Error::<T>::InsufficientLiquidityMinted
);
// Transfer the assets from the sender to the liquidity pool
Self::transfer_asset_to_pool(&sender, trading_pair.0, amount_a)?;
Self::transfer_asset_to_pool(&sender, trading_pair.1, amount_b)?;
// Mint liquidity tokens to the sender
Self::mint_liquidity_tokens(&sender, liquidity_pool.liquidity_token, liquidity_minted)?;
// Update the liquidity pool reserves and total liquidity using the `mint` method
liquidity_pool.mint((amount_a, amount_b), liquidity_minted)?;
// Update the liquidity pool in storage
LiquidityPools::<T>::insert(&trading_pair, liquidity_pool);
// Emit the LiquidityMinted event
Self::deposit_event(Event::LiquidityMinted(
sender,
trading_pair,
liquidity_minted,
));
Ok(())
}
// Dispatchable call to burn liquidity tokens
#[pallet::call_index(2)]
#[pallet::weight(Weight::default())]
pub fn burn_liquidity(
origin: OriginFor<T>,
asset_a: AssetIdOf<T>,
asset_b: AssetIdOf<T>,
liquidity_burned: AssetBalanceOf<T>,
min_amount_a: AssetBalanceOf<T>,
min_amount_b: AssetBalanceOf<T>,
) -> DispatchResult {
let sender = ensure_signed(origin)?;
let trading_pair = return_vaild_pair_format::<T>(asset_a, asset_b)?;
let mut liquidity_pool =
LiquidityPools::<T>::get(trading_pair).ok_or(Error::<T>::LiquidityPoolNotFound)?;
// Calculate the amounts of tokens to withdraw based on the liquidity burned and
// the current reserves
let amounts_out = Self::calculate_amounts_out(
liquidity_burned,
(liquidity_pool.reserves.0, liquidity_pool.reserves.1),
liquidity_pool.total_liquidity,
)?;
ensure!(
amounts_out.0 >= min_amount_a && amounts_out.1 >= min_amount_b,
Error::<T>::InsufficientAmountsOut
);
// Burn the liquidity tokens from the sender
Self::burn_liquidity_tokens(&sender, liquidity_pool.liquidity_token, liquidity_burned)?;
// Update the liquidity pool reserves and total liquidity
liquidity_pool.burn(liquidity_burned, amounts_out)?;
LiquidityPools::<T>::insert(trading_pair, liquidity_pool);
// Transfer the assets to the sender
Self::transfer_asset_to_user(&sender, trading_pair.0, amounts_out.0)?;
Self::transfer_asset_to_user(&sender, trading_pair.1, amounts_out.1)?;
Self::deposit_event(Event::LiquidityBurned(
sender,
trading_pair,
liquidity_burned,
));
Ok(())
}
#[pallet::call_index(3)]
#[pallet::weight(Weight::default())]
pub fn swap(
origin: OriginFor<T>,
asset_in: AssetIdOf<T>,
asset_out: AssetIdOf<T>,
amount_in: AssetBalanceOf<T>,
min_amount_out: AssetBalanceOf<T>,
) -> DispatchResult {
let sender = ensure_signed(origin)?;
let (liquidity_pool, trading_pair) = {
let trading_pair = return_vaild_pair_format::<T>(asset_in, asset_out)?;
(LiquidityPools::<T>::get(&trading_pair), trading_pair)
};
let mut liquidity_pool = liquidity_pool.ok_or(Error::<T>::LiquidityPoolNotFound)?;
let amount_out = liquidity_pool.swap(asset_in, asset_out, amount_in, min_amount_out)?;
Self::transfer_asset_from_user(&sender, asset_in, amount_in)?;
Self::transfer_asset_to_user(&sender, asset_out, amount_out)?;
LiquidityPools::<T>::insert(&trading_pair, liquidity_pool);
Self::deposit_event(Event::Swapped(
sender, asset_in, amount_in, asset_out, amount_out,
));
Ok(())
}
}
/// The pallet's internal functions.
impl<T: Config> Pallet<T> {
fn calculate_liquidity_minted(
amounts: (AssetBalanceOf<T>, AssetBalanceOf<T>),
reserves: (AssetBalanceOf<T>, AssetBalanceOf<T>),
total_liquidity: AssetBalanceOf<T>,
) -> Result<AssetBalanceOf<T>, DispatchError> {
let (amount_a, amount_b) = amounts;
let (reserve_a, reserve_b) = reserves;
ensure!(
!amount_a.is_zero() && !amount_b.is_zero(),
Error::<T>::InsufficientLiquidityMinted
);
if total_liquidity.is_zero() {
// If the liquidity pool is empty, the minted liquidity is the geometric mean of the amounts
let liquidity_minted = Self::geometric_mean(amount_a, amount_b)?;
Ok(liquidity_minted)
} else {
// If the liquidity pool is not empty, calculate the minted liquidity proportionally
let liquidity_minted_a = amount_a
.checked_mul(&total_liquidity)
.ok_or(Error::<T>::ArithmeticOverflow)?
.checked_div(&reserve_a)
.ok_or(Error::<T>::DivisionByZero)?;
let liquidity_minted_b = amount_b
.checked_mul(&total_liquidity)
.ok_or(Error::<T>::ArithmeticOverflow)?
.checked_div(&reserve_b)
.ok_or(Error::<T>::DivisionByZero)?;
// Choose the smaller minted liquidity to maintain the desired asset ratio
let liquidity_minted = sp_std::cmp::min(liquidity_minted_a, liquidity_minted_b);
Ok(liquidity_minted)
}
}
/// This is used ti estimate the amount of liquidity to be minted to a provider is the pool is a new pool
fn geometric_mean(
amount_a: AssetBalanceOf<T>,
amount_b: AssetBalanceOf<T>,
) -> Result<AssetBalanceOf<T>, DispatchError> {
let sqrt_product = (amount_a
.checked_mul(&amount_b)
.ok_or(Error::<T>::ArithmeticOverflow)?)
.integer_sqrt();
Ok(sqrt_product)
}
fn pallet_account_id() -> T::AccountId {
T::PalletId::get().into_account_truncating()
}
fn transfer_asset_to_pool(
sender: &AccountIdOf<T>,
asset_id: AssetIdOf<T>,
amount: AssetBalanceOf<T>,
) -> DispatchResult {
// Transfer the asset from the sender to the pool account
T::Fungibles::transfer(
asset_id,
sender,
&Self::pallet_account_id(),
amount,
Preservation::Expendable,
)?;
Ok(())
}
fn mint_liquidity_tokens(
recipient: &AccountIdOf<T>,
liquidity_token_id: AssetIdOf<T>,
amount: AssetBalanceOf<T>,
) -> DispatchResult {
// Mint the liquidity tokens to the recipient
T::Fungibles::mint_into(liquidity_token_id, recipient, amount)?;
Ok(())
}
fn burn_liquidity_tokens(
sender: &AccountIdOf<T>,
liquidity_token_id: AssetIdOf<T>,
amount: AssetBalanceOf<T>,
) -> DispatchResult {
// Burn the liquidity tokens from the sender's account
T::Fungibles::burn_from(
liquidity_token_id,
sender,
amount,
Precision::Exact,
Fortitude::Polite,
)?;
Ok(())
}
fn calculate_amounts_out(
liquidity_burned: AssetBalanceOf<T>,
reserves: (AssetBalanceOf<T>, AssetBalanceOf<T>),
total_liquidity: AssetBalanceOf<T>,
) -> Result<(AssetBalanceOf<T>, AssetBalanceOf<T>), DispatchError> {
ensure!(!liquidity_burned.is_zero(), Error::<T>::ZeroLiquidityBurned);
ensure!(
!total_liquidity.is_zero(),
Error::<T>::InsufficientLiquidity
);
let (reserve_a, reserve_b) = reserves;
ensure!(
!reserve_a.is_zero() && !reserve_b.is_zero(),
Error::<T>::InsufficientLiquidity
);
let amount_a = liquidity_burned
.checked_mul(&reserve_a)
.ok_or(Error::<T>::ArithmeticOverflow)?
.checked_div(&total_liquidity)
.ok_or(Error::<T>::DivisionByZero)?;
let amount_b = liquidity_burned
.checked_mul(&reserve_b)
.ok_or(Error::<T>::ArithmeticOverflow)?
.checked_div(&total_liquidity)
.ok_or(Error::<T>::DivisionByZero)?;
Ok((amount_a, amount_b))
}
fn transfer_asset_from_user(
user: &AccountIdOf<T>,
asset_id: AssetIdOf<T>,
amount: AssetBalanceOf<T>,
) -> DispatchResult {
T::Fungibles::transfer(
asset_id,
user,
&Self::pallet_account_id(),
amount,
Preservation::Expendable,
)?;
Ok(())
}
fn transfer_asset_to_user(
user: &AccountIdOf<T>,
asset_id: AssetIdOf<T>,
amount: AssetBalanceOf<T>,
) -> DispatchResult {
T::Fungibles::transfer(
asset_id,
&Self::pallet_account_id(),
user,
amount,
Preservation::Expendable,
)?;
Ok(())
}
}
}
fn return_vaild_pair_format<T: pallet::Config>(asset_a: AssetIdOf<T>, asset_b: AssetIdOf<T>) -> Result<(AssetIdOf<T>, AssetIdOf<T>), DispatchError> {
if asset_a == asset_b {
return Err(Error::<T>::LiquidityPoolAlreadyExists.into());
}
if asset_a < asset_b {
Ok((asset_a, asset_b))
} else {
Ok((asset_b, asset_a))
}
}