pallet_dex_v2/

lib.rs

// 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))
    }
}