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Implement Core Functionalities of StableSwap in Ralph #24

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polarker opened this issue Nov 13, 2024 · 0 comments
Open

Implement Core Functionalities of StableSwap in Ralph #24

polarker opened this issue Nov 13, 2024 · 0 comments

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@polarker
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Objective
Implement the core functionalities of a StableSwap protocol within Ralph, focusing on creating a stable and efficient swapping mechanism for similarly-valued assets (e.g., stablecoins).

References
3Pool Code: https://github.com/curvefi/curve-contract/blob/master/contracts/pools/3pool/StableSwap3Pool.vy
Ralph Dex: https://github.com/alephium/alephium-dex/tree/master/contracts
StabeSwap white paper: https://berkeley-defi.github.io/assets/material/StableSwap.pdf

Scope of Work
Develop the following essential features for StableSwap:

  1. Liquidity Pools

    • Enable users to deposit and withdraw assets into/from liquidity pools.
    • Ensure users can add multiple similarly-valued assets (e.g., stablecoins) into a single pool.
    • Implement a mechanism to track pool reserves and manage LP tokens for users.
  2. Stable Swaps

    • Create a stable swap algorithm for low-slippage trades between similarly-valued assets.
    • Use an invariant function (e.g., constant product or similar stable swap algorithm) that maintains price stability during trades.
  3. Fees & Incentives

    • Set up fee structures for swaps, which can be distributed to liquidity providers as incentives.
    • Implement adjustable parameters for fees to allow flexibility.
  4. Yield Distribution

    • Allow the protocol to distribute fees collected from swaps to liquidity providers based on their share of the pool.
    • Calculate and periodically update yields for LP tokens held by liquidity providers.

Requirements

  • Ensure modular and efficient code to support future scalability and upgrades.
  • Maintain compatibility with Ralph’s existing architecture and standards.
  • Include a comprehensive test suite covering unit tests, edge cases, and integration tests.
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