A liquidity pool to protect against directional risk and easily exit positions.
An implementation of Cover, a stop-loss liquidity pool, written in Solidity.
This follows the specification detailed in the Poolshark whitepaper.
Pretty much everything. There's a lot of math around amountDeltaMax.
This is the expected token amount to be received over a position's price range.
Since the stop-loss unlocks in the opposite direction of how swaps move the price, the logic in Claims.sol gets a bit deep.
Most of the intense logic pieces are in Claims.sol and Epochs.sol.
Almost all of the bytecode deals with in-memory calculations, making gas costs as scalable as its AMMs predecessors.
git clone https://github.com/poolshark-protocol/cover
cd cover
yarn install
This repo makes full use of Echidna's assertion testing to fully test and analyze the Cover smart contracts.
Tests can be run via the following commands.
Only Hardhat is supported for now, with Foundry support soon to follow.
yarn clean
yarn compile
yarn test
Contracts can be deployed onto Arbitrum Goerli using the deploy script:
npx hardhat deploy-coverpools --network arb_goerli
Cover Pool is the liquidity pool contract which contains all the calls for the pool. Outside of the liquidity unlock and claim processes, it is a relatively simple AMM liquidity pool which uses a TWAP source to unlock liquidity and fill user's stop-loss positions via 'Auctions'. Positions are implemented via an ERC-1155 for transferability and composability.
The contracts are implemented with extremely limited admin functionality, namely modifying fees up to a defined ceiling of 1% and adding new volatility tiers.
Cover Pools utilize epochs to determine to what tick in the user's position range they have been filled. A fillFee can be turned on by the protocol if desired, taking a portion of any filled positions amounts and directing that to a chosen feeTo address. If ever a pool were to ever require an extensive sync, a user burning a position could simply skip the syncing process by passing sync = true.
ERC-165: Standard Interface Detection
ERC-1155: Multi Token Standard
The factory which handles the deployment of new Cover Pools. The factory works by cloning the implementation contract to match a given Cover pool type. Each pool type, which is ultimately in control of the Protocol-Owned liquidity each pair accrues. This will then be used for future Tinkermaster expansion. The deployment of new pools is pausable through a EOA controled timelock.
ERC-1167: Minimal Proxy Contract
To allow the most flexible deployment of Cover Pools, this repo prepares several integrations in mind, primarily for Uniswap V3 TWAP and Poolshark Limit TWAP.
ERC-1155 Functions
totalSupply balanceOf transfer transferFrom approve allowance
General Functions
mint burn swap quote snapshot immutables priceBounds
