MultiSwap & Configurable Liquidity Pools

This repository focuses on simplifying operations within the decentralized finance (DeFi) space. It introduces two innovative components: configurable liquidity pools and a multi-swap executor, addressing common issues like complexity, lengthy processes, and high gas costs.

Problem Statement

DeFi operations often face the following challenges:

• Complexity in performing multiple token swaps.
• Lengthy processes requiring user interaction at every step.
• High gas costs due to multiple transactions.
• Limited configurability in liquidity pools, especially for price curves and other parameters.

Solution

This project offers:

1. Configurable Liquidity Pools: A customizable liquidity pool implementation, allowing developers to define their own pricing curves by implementing the IPricingCurve interface. This enables:

   • Dynamic token output calculation.
   • Custom LP token generation mechanisms.
   • Enhanced flexibility to suit different DeFi protocols.

2. MultiSwap Executor: A contract enabling users to perform batch token swaps across multiple liquidity pools in a single transaction. It leverages the ERC-2612 standard for off-chain signatures and the permit function, allowing gas-efficient approvals without direct on-chain transactions.

Features

• Configurable Pricing Curves: Support for various pricing strategies through an extendable interface.
• Batch Swapping: Efficiently swap multiple tokens across pools in one transaction.
• Off-Chain Signatures: Reduced gas costs by utilizing the ERC-2612 permit functionality.
• Modular Design: Easy integration with other DeFi protocols.

Installation

This project is built on Scaffold-ETH, providing a robust framework for Ethereum-based development.

Prerequisites

Ensure you have the following installed:

• Node.js (v16 or higher)
• Yarn
• Hardhat

Setup

1. Clone this repository:

   git clone https://github.com/your-repo/multiswap-liquidity-pools.git
   cd multiswap-liquidity-pools

2. Install dependencies:

   yarn install

3. Run tests:

   yarn test

Contracts Overview

1. Configurable Liquidity Pools

• Implements a dynamic pricing mechanism using the IPricingCurve interface.
• Supports depositing, withdrawing, and swapping tokens with custom logic for LP token issuance.

2. MultiSwap Executor

• Facilitates batch token swaps across multiple pools.
• Utilizes off-chain signatures for approvals via the permit function, reducing gas costs and simplifying user interaction.

Usage

1. Start localhost chain:

   yarn chain

2. Deploy contracts on a local or test network:

   yarn deploy

3. Use or create custom scripts to interact with contracts:

   cd .\packages\hardhat\scripts\     
   yarn hardhat run usage.ts

Roadmap

1. Testnet Deployment:
   • Deploy contracts to popular Ethereum testnets (e.g. Sepolia).
2. Enhanced Pricing Curves:
   • Add new implementations for pricing curves.
   • Integrate price feeds from oracles like Chainlink.
   • Implement user incentive systems.
3. UI Development:
   • Create a user-friendly interface for interacting with the MultiSwap Executor and liquidity pools.
4. Auditing:
   • Perform security audits to ensure robustness.

Contributing

Contributions are welcome! Please fork the repository and submit a pull request for any changes or improvements.

License

This project is licensed under the MIT License. See the LICENSE file for details.

Acknowledgments

• Built on Scaffold-ETH.
• Inspired by the challenges of simplifying DeFi interactions.