Merge pull request #13 from AztecProtocol/testnet

testnet compatibility

Author: Thunkar

contracts/Nargo.toml

@@ -1,4 +1,5 @@
 [workspace]
 members = [
-    "proof_of_password"
+    "proof_of_password",
+    "amm"
 ]

contracts/amm/Nargo.toml

@@ -0,0 +1,9 @@
+[package]
+name = "amm_contract"
+authors = [""]
+type = "contract"
+
+[dependencies]
+aztec = { git = "https://github.com/AztecProtocol/aztec-packages/", tag = "v4.2.0-aztecnr-rc.2", directory = "noir-projects/aztec-nr/aztec" }
+token = { git = "https://github.com/AztecProtocol/aztec-packages/", tag = "v4.2.0-aztecnr-rc.2", directory = "noir-projects/noir-contracts/contracts/app/token_contract" }
+uint_note = { git = "https://github.com/AztecProtocol/aztec-packages/", tag = "v4.2.0-aztecnr-rc.2", directory = "noir-projects/aztec-nr/uint-note" }

contracts/amm/src/config.nr

@@ -0,0 +1,11 @@
+use aztec::protocol::{address::AztecAddress, traits::{Deserialize, Packable, Serialize}};
+use std::meta::derive;
+
+/// We store the tokens of the pool in a struct such that to load it from PublicImmutable asserts only a single
+/// merkle proof.
+#[derive(Deserialize, Eq, Packable, Serialize)]
+pub struct Config {
+    pub token0: AztecAddress,
+    pub token1: AztecAddress,
+    pub liquidity_token: AztecAddress,
+}

contracts/amm/src/lib.nr

@@ -0,0 +1,96 @@
+/// Given an input amount of an asset and pair balances, returns the maximum output amount of the other asset.
+pub fn get_amount_out(amount_in: u128, balance_in: u128, balance_out: u128) -> u128 {
+    assert(amount_in > 0 as u128, "INSUFFICIENT_INPUT_AMOUNT");
+    assert((balance_in > 0 as u128) & (balance_out > 0 as u128), "INSUFFICIENT_LIQUIDITY");
+
+    // The expression below is:
+    //    (amount_in * 997 * balance_out) / (balance_in * 10000 + amount_in * 997)
+    // which is equivalent to:
+    //    balance_out * ((amount_in * 0.997) / (balance_in + amount_in * 0.997))
+    // resulting in an implicit 0.3% fee on the amount in, as the fee tokens are not taken into consideration.
+
+    let amount_in_with_fee = amount_in * 997 as u128;
+    let numerator = amount_in_with_fee * balance_out;
+    let denominator = balance_in * 1000 as u128 + amount_in_with_fee;
+    numerator / denominator
+}
+
+/// Given an output amount of an asset and pair balances, returns a required input amount of the other asset.
+pub fn get_amount_in(amount_out: u128, balance_in: u128, balance_out: u128) -> u128 {
+    assert(amount_out > 0 as u128, "INSUFFICIENT_OUTPUT_AMOUNT");
+    assert((balance_in > 0 as u128) & (balance_out > 0 as u128), "INSUFFICIENT_LIQUIDITY");
+
+    // The expression below is:
+    //    (balance_in * amount_out * 1000) / (balance_out - amount_out * 997) + 1
+    // which is equivalent to:
+    //    balance_in * (amount_out / (balance_in + amount_in)) *  1/0.997 + 1
+    // resulting in an implicit 0.3% fee on the amount in, as the fee tokens are not taken into consideration. The +1
+    // at the end ensures the rounding error favors the pool.
+
+    let numerator = balance_in * amount_out * 1000 as u128;
+    let denominator = (balance_out - amount_out) * 997 as u128;
+    (numerator / denominator) + 1 as u128
+}
+
+/// Given the desired amounts and balances of token0 and token1 returns the optimal amount of token0 and token1 to be added to the pool.
+pub fn get_amounts_to_add(
+    amount0_max: u128,
+    amount1_max: u128,
+    amount0_min: u128,
+    amount1_min: u128,
+    balance0: u128,
+    balance1: u128,
+) -> (u128, u128) {
+    // When adding tokens, both balances must grow by the same ratio, which means that their spot price is unchanged.
+    // Since any swaps would affect these ratios, liquidity providers supply a range of minimum and maximum balances
+    // they are willing to supply for each token (which translates to minimum and maximum relative prices of the
+    // tokens, preventing loss of value outside of this range due to e.g. front-running).
+
+    if (balance0 == 0 as u128) | (balance1 == 0 as u128) {
+        // The token balances should only be zero when initializing the pool. In this scenario there is no prior ratio
+        // to follow so we simply transfer the full maximum balance - it is up to the caller to make sure that the ratio
+        // they've chosen results in a a reasonable spot price.
+        (amount0_max, amount1_max)
+    } else {
+        // There is a huge number of amount combinations that respect the minimum and maximum for each token, but we'll
+        // only consider the two scenarios in which one of the amounts is the maximum amount.
+
+        // First we calculate the token1 amount that'd need to be supplied if we used the maximum amount for token0.
+        let amount1_equivalent = get_equivalent_amount(amount0_max, balance0, balance1);
+        if (amount1_equivalent <= amount1_max) {
+            assert(amount1_equivalent >= amount1_min, "AMOUNT_1_BELOW_MINIMUM");
+            (amount0_max, amount1_equivalent)
+        } else {
+            // If the max amount for token0 results in a token1 amount larger than the maximum, then we try with the
+            // maximum token1 amount, hoping that it'll result in a token0 amount larger than the minimum.
+            let amount0_equivalent = get_equivalent_amount(amount1_max, balance1, balance0);
+            // This should never happen, as it'd imply that the maximum is lower than the minimum.
+            assert(amount0_equivalent <= amount0_max);
+
+            assert(amount0_equivalent >= amount0_min, "AMOUNT_0_BELOW_MINIMUM");
+            (amount0_equivalent, amount1_max)
+        }
+    }
+}
+
+/// Returns the amount of tokens to return to a liquidity provider when they remove liquidity from the pool.
+pub fn get_amounts_on_remove(
+    to_burn: u128,
+    total_supply: u128,
+    balance0: u128,
+    balance1: u128,
+) -> (u128, u128) {
+    // Since the liquidity token tracks ownership of the pool, the liquidity provider gets a proportional share of each
+    // token.
+    (to_burn * balance0 / total_supply, to_burn * balance1 / total_supply)
+}
+
+/// Given some amount of an asset and pair balances, returns an equivalent amount of the other asset. Tokens should be
+/// added and removed from the Pool respecting this ratio.
+fn get_equivalent_amount(amount0: u128, balance0: u128, balance1: u128) -> u128 {
+    assert((balance0 > 0 as u128) & (balance1 > 0 as u128), "INSUFFICIENT_LIQUIDITY");
+
+    // This is essentially the Rule of Three, since we're computing proportional ratios. Note we divide at the end to
+    // avoid introducing too much error due to truncation.
+    (amount0 * balance1) / balance0
+}