Lido Stonks

What is Stonks?

Stonks is a sophisticated solution designed for token exchanges, leveraging the offchain CoW Swap platform. This system enables a specialized Token Management Committee within the DAO framework to safely conduct token swaps without ever taking custody of the tokens on their balance.

How does it work?

Stonks leverages a combination of advanced blockchain protocols and smart contract mechanisms to facilitate secure and efficient token swaps:

Utilizing CoW Swap's Offchain Orderbook

• Front-Running Mitigation: CoW Swap's offchain orderbook prevents front-running, a common issue in on-chain environments, by hiding order details until execution.
• Efficient Price Discovery: Batch auctions in CoW Swap match overlapping orders, ensuring fair pricing.

Chainlink for Accurate Pricing

• Real-Time Market Prices: Stonks uses Chainlink to obtain real-time, reliable market prices, ensuring swaps are executed at rates reflecting current market conditions.

Onchain Order Creation

• EIP-712 and EIP-1271 Standards: Orders are created onchain using EIP-712 for clear, secure data signing and EIP-1271 for smart contract verification, enhancing security and trust.

Price Verification at Execution

• Mitigating Price Volatility: Stonks checks prices at execution time to mitigate risks from sudden market movements, ensuring swaps occur under favorable conditions.

Fixed Swap Parameters

• Hard-Coded in Smart Contracts: Exchange parameters are embedded in the smart contracts, eliminating the need for manual configuration and ensuring consistent, automated swap operations.

Contributing

Before starting, ensure you have installed:

• node.js 16>
• npm (Node Package Manager)

Installation

git clone git@github.com:lidofinance/stonks.git
cd stonks
npm install

Configuration

Create a .env file in the root directory of your project and add the following environment variables:

RPC_URL="your_rpc_link"
WALLET_PRIVATE_KEY="your_private_key"
ETHERSCAN_API_KEY="your_etherscan_api_key"

Usage

You can run a local Ethereum node for development and testing purposes using the command:

npm run node

Note: this command should be run in a separate terminal tab and kept active during development.

To run the tests, open a new terminal tab and execute the following command:

npm run test