AMM Adapters

The AmmModule is crucial for integrating with AMM protocols, providing a suite of functions to validate parameters, calculate liquidity amounts, manage positions, and more. Below is a detailed breakdown of its functions:

validateProtocolParams(bytes memory params)

Validates the protocol parameters to ensure they adhere to the expected format and rules set by the implementation of the AmmModule.

• Input Parameters:

  • params: A byte array containing encoded protocol parameters specific to the AmmModule implementation.

• Logic:

  • The function checks the params byte array against the protocol's parameter schema, reverting if the validation fails due to incorrect formatting or values.

validateCallbackParams(bytes memory params)

Ensures that callback parameters meet the AmmModule requirements for executing callbacks.

• Input Parameters:

  • params: A byte array encoding callback parameters as defined by the specific AMM module implementation.

• Logic:

  • Similar to validateProtocolParams, this function verifies the integrity and format of the callback parameters, reverting upon detection of invalid data.

getAmountsForLiquidity(uint128 liquidity, uint160 sqrtPriceX96, int24 tickLower, int24 tickUpper)

Calculates the amounts of each token in a position given its liquidity and price range.

• Input Parameters:

  • liquidity: The liquidity amount of the AMM position, a key value representing the quantity of tokens.

  • sqrtPriceX96: The square root of the current price in a fixed-point format with 96 bits of precision.

  • tickLower: The lower bound of the position's price range.

  • tickUpper: The upper bound of the position's price range.

• Logic:

  • Returns the amounts of tokens (amount0 and amount1) that correspond to the provided liquidity within the specified price range. This calculation is critical for understanding the composition of a position at current market conditions.

tvl(uint256 tokenId, uint160 sqrtRatioX96, bytes memory callbackParams, bytes memory protocolParams)

Determines the total value locked (TVL) for a given token position, accounting for current market conditions.

• Input Parameters:

  • tokenId: Identifier of the AMM position token.

  • sqrtRatioX96: The square root of the current pool's price ratio, encoded in a fixed-point format.

  • callbackParams: Encoded parameters for callbacks, possibly including details like staking preferences.

  • protocolParams: Encoded protocol parameters relevant to the position's valuation.

• Logic:

  • Computes and returns the amounts of token0 (amount0) and token1 (amount1) locked in the position represented by tokenId, utilizing current price data and protocol-specific parameters.

getAmmPosition(uint256 tokenId)

Fetches details about a specific AMM position identified by a token ID.

• Input Parameters:

  • tokenId: The unique identifier of the AMM position.

• Logic:

  • Returns a structured representation (AmmPosition memory) of the position, including data like token addresses, liquidity amount, and price range.

getPool(address token0, address token1, uint24 property)

Retrieves the pool address for a given token pair and property (such as fee or tick spacing).

• Input Parameters:

  • token0: Address of the first token in the pair.

  • token1: Address of the second token in the pair.

  • property: A characteristic defining the pool, often related to fees or protocol-specific configurations.

• Logic:

  • Returns the address of the AMM pool corresponding to the specified token pair and property.

getProperty(address pool)

Obtains a specific property of a pool, useful for understanding its configuration.

• Input Parameters:

  • pool: The address of the AMM pool.

• Logic:

  • Returns a property value (uint24) of the pool, such as tick spacing or fee rate, contributing to its operational characteristics.

beforeRebalance(uint256 tokenId, bytes memory callbackParams, bytes memory protocolParams)

Executes preliminary steps before a rebalance action, setting up necessary conditions or adjustments.

• Input Parameters:

  • tokenId, callbackParams, protocolParams: Parameters identifying the position and detailing the rebalance context.

• Logic:

  • Prepares the position and protocol environment for rebalancing, potentially interacting with other contracts or updating internal states.

afterRebalance(uint256 tokenId, bytes memory callbackParams, bytes memory protocolParams)

Finalizes the rebalancing process with necessary adjustments and updates based on the outcome.

• Input Parameters:

  • tokenId: The identifier of the AMM position being rebalanced.

  • callbackParams: Parameters that were possibly modified or utilized during the rebalance.

  • protocolParams: Protocol-specific parameters that could influence final state adjustments.

• Logic:

  • Completes the rebalancing action by potentially updating position details, recording metrics, or executing protocol-specific final steps.

transferFrom(address from, address to, uint256 tokenId)

Transfers a specific AMM position (represented by a token ID) from one account to another.

• Input Parameters:

  • from: The current owner of the AMM position.

  • to: The new owner to whom the position will be transferred.

  • tokenId: The unique identifier of the AMM position token.

• Logic:

  • Facilitates the ownership transfer of an AMM position, ensuring that the specified tokenId is moved from from to to.

positionManager() external view returns (address)

Provides the address of the position manager contract associated with the AMM module.

• Logic:

  • Returns the address of the contract responsible for managing position tokens, offering a centralized point of interaction for position-related operations within the protocol

Structs Overview

AmmPosition:

struct AmmPosition {
    address token0;
    address token1;
    uint24 property;
    int24 tickLower;
    int24 tickUpper;
    uint128 liquidity
}

Component Details

• token0:

  • Description: The address of the first token in the AMM pair.

• token1:

  • Description: The address of the second token in the AMM pair.

• property:

  • Description: Represents specific characteristics of the pool, such as fee rates or tick spacing.

• tickLower:

  • Description: The lower bound tick of the position's price range.

• tickUpper:

  • Description: The upper bound tick of the position's price range.

• liquidity:

  • Description: The amount of liquidity provided by the position.