Simple AMM with Vault-Pool Structure

Part 1: Introduction

This project implements a simple Automated Market Maker (AMM) with a vault-pool structure. To accommodate multi-token trading requirements, the pool utilizes Balancer's algorithm. The system is designed with future scalability in mind, allowing for potential iterations to support multiple pool types.

Key features:

• Vault-pool architecture for enhanced security and flexibility
• Multi-token support using Balancer's weighted pool algorithm
• Upgradeable design for future improvements

Part 2: Contract Structure

The AMM consists of three main components:

1. Vault:

   • Acts as the central hub for all funds
   • Serves as the entry point for user transactions
   • Manages global system parameters and security features

2. Pool:

   • Implements trading algorithm logic
   • Handles LP token minting and burning
   • Calculates swap amounts and fees

3. PoolFactory:

   • Enables permissionless creation of new pools
   • Registers newly created pools with the Vault
   • Manages pool deployment and initialization

Part 3: Contract Methods

Vault Methods

User Methods:

1. swapExactIn(SwapParams memory params) external payable returns (uint256)

   • Performs a token swap with an exact input amount
   • Supports multi-hop swaps (up to 3 hops)

2. swapExactOut(SwapParams memory params) external payable returns (uint256)

   • Performs a token swap with an exact output amount
   • Supports multi-hop swaps (up to 3 hops)

3. addLiquidity(address _pool, uint256[] memory amounts, uint256 minToMint, uint256 deadline) external payable returns (uint256)

   • Adds liquidity to a specified pool
   • Returns the amount of LP tokens minted

4. removeLiquidity(address _pool, uint256 lpTokenAmount, uint256[] memory minAmountsOut, uint256 deadline) external returns (uint256[] memory)

   • Removes liquidity from a specified pool
   • Returns the amounts of tokens received

Admin Methods:

1. setGlobalPause(bool _pause) external onlyOwner

   • Pauses or unpauses all operations in the Vault

2. setPoolLock(address _pool, bool _lock) external onlyOwner

   • Locks or unlocks a specific pool

3. addFactory(address factory) external onlyOwner

   • Adds a new authorized factory

4. removeFactory(address factory) external onlyOwner

   • Removes an authorized factory

note: The operation to delete the pool is not currently provided, considering that the pool does not manage funds independently, and therefore should not be deleted by the admin.

Part 4: Forge Test Usage

To run tests using Forge:

1. Install Forge if you haven't already:

   curl -L https://foundry.paradigm.xyz | bash
   foundryup
   

2. Install dependencies:

   forge install
   

3. Run tests:

   forge test
   

4. Deploy

   forge script script/Deploy.s.sol:Deploy --rpc-url https://rpc.ankr.com/eth_sepolia --broadcast --slow
   

For more information on Forge and its features, refer to the Forge Book.