237-combo/examples/ts/uniswap-v3-oracle.ts

/**
 * Uniswap v3: TWAP Oracle usage
 * 
 * This example demonstrates how to use Uniswap v3 pools as price oracles
 * by querying time-weighted average prices (TWAP).
 * 
 * Note: Always use TWAP, not spot prices, to protect against manipulation.
 */

import { createRpcClient } from '../../src/utils/chain-config.js';
import { getTokenMetadata } from '../../src/utils/tokens.js';
import type { Address } from 'viem';

const CHAIN_ID = 1; // Mainnet

// Uniswap v3 Pool ABI
const POOL_ABI = [
  {
    name: 'slot0',
    type: 'function',
    stateMutability: 'view',
    inputs: [],
    outputs: [
      { name: 'sqrtPriceX96', type: 'uint160' },
      { name: 'tick', type: 'int24' },
      { name: 'observationIndex', type: 'uint16' },
      { name: 'observationCardinality', type: 'uint16' },
      { name: 'observationCardinalityNext', type: 'uint16' },
      { name: 'feeProtocol', type: 'uint8' },
      { name: 'unlocked', type: 'bool' },
    ],
  },
  {
    name: 'observations',
    type: 'function',
    stateMutability: 'view',
    inputs: [{ name: 'index', type: 'uint16' }],
    outputs: [
      { name: 'blockTimestamp', type: 'uint32' },
      { name: 'tickCumulative', type: 'int56' },
      { name: 'secondsPerLiquidityCumulativeX128', type: 'uint160' },
      { name: 'initialized', type: 'bool' },
    ],
  },
  {
    name: 'token0',
    type: 'function',
    stateMutability: 'view',
    inputs: [],
    outputs: [{ name: '', type: 'address' }],
  },
  {
    name: 'token1',
    type: 'function',
    stateMutability: 'view',
    inputs: [],
    outputs: [{ name: '', type: 'address' }],
  },
  {
    name: 'fee',
    type: 'function',
    stateMutability: 'view',
    inputs: [],
    outputs: [{ name: '', type: 'uint24' }],
  },
] as const;

/**
 * Calculate price from sqrtPriceX96
 * price = (sqrtPriceX96 / 2^96)^2
 */
function calculatePriceFromSqrtPriceX96(sqrtPriceX96: bigint): number {
  const Q96 = 2n ** 96n;
  const price = Number(sqrtPriceX96) ** 2 / Number(Q96) ** 2;
  return price;
}

/**
 * Calculate TWAP from observations
 * 
 * TWAP = (tickCumulative1 - tickCumulative0) / (time1 - time0)
 */
function calculateTWAP(
  tickCumulative0: bigint,
  tickCumulative1: bigint,
  time0: number,
  time1: number
): number {
  if (time1 === time0) {
    throw new Error('Time difference cannot be zero');
  }
  const tickDelta = Number(tickCumulative1 - tickCumulative0);
  const timeDelta = time1 - time0;
  const avgTick = tickDelta / timeDelta;
  
  // Convert tick to price: price = 1.0001^tick
  const price = 1.0001 ** avgTick;
  return price;
}

/**
 * Get pool address from Uniswap v3 Factory
 * In production, use the official Uniswap v3 SDK to compute pool addresses
 */
async function getPoolAddress(
  client: any,
  token0: Address,
  token1: Address,
  fee: number
): Promise<Address> {
  // This is a simplified example. In production, use:
  // 1. Uniswap v3 Factory to get pool address
  // 2. Or compute pool address using CREATE2 (see Uniswap v3 SDK)
  // For now, this is a placeholder
  throw new Error('Implement pool address resolution using Factory or SDK');
}

async function queryOracle() {
  const publicClient = createRpcClient(CHAIN_ID);
  
  const token0 = getTokenMetadata(CHAIN_ID, 'USDC');
  const token1 = getTokenMetadata(CHAIN_ID, 'WETH');
  const fee = 3000; // 0.3% fee tier

  console.log(`Querying Uniswap v3 TWAP oracle for ${token0.symbol}/${token1.symbol}`);
  console.log(`Fee tier: ${fee} (0.3%)`);

  // Note: In production, you need to:
  // 1. Get the pool address from Uniswap v3 Factory
  // 2. Or use the Uniswap v3 SDK to compute it
  // For this example, we'll demonstrate the concept

  // Example: Query current slot0 (spot price - not recommended for production!)
  // const poolAddress = await getPoolAddress(publicClient, token0.address, token1.address, fee);
  
  // const slot0 = await publicClient.readContract({
  //   address: poolAddress,
  //   abi: POOL_ABI,
  //   functionName: 'slot0',
  // });
  
  // const sqrtPriceX96 = slot0[0];
  // const currentPrice = calculatePriceFromSqrtPriceX96(sqrtPriceX96);
  // console.log(`Current spot price: ${currentPrice} ${token1.symbol} per ${token0.symbol}`);

  // Example: Query TWAP from observations
  // const observationIndex = slot0[2];
  // const observation0 = await publicClient.readContract({
  //   address: poolAddress,
  //   abi: POOL_ABI,
  //   functionName: 'observations',
  //   args: [observationIndex],
  // });
  
  // Query a previous observation (e.g., 1 hour ago)
  // const previousIndex = (observationIndex - 3600) % observationCardinality;
  // const observation1 = await publicClient.readContract({
  //   address: poolAddress,
  //   abi: POOL_ABI,
  //   functionName: 'observations',
  //   args: [previousIndex],
  // });
  
  // const twap = calculateTWAP(
  //   observation0.tickCumulative,
  //   observation1.tickCumulative,
  //   observation0.blockTimestamp,
  //   observation1.blockTimestamp
  // );
  // console.log(`TWAP (1 hour): ${twap} ${token1.symbol} per ${token0.symbol}`);

  console.log('\n⚠️  This is a conceptual example.');
  console.log('In production, use:');
  console.log('  1. Uniswap v3 OracleLibrary (see Uniswap v3 periphery contracts)');
  console.log('  2. Uniswap v3 SDK for price calculations');
  console.log('  3. Always use TWAP, never spot prices');
  console.log('  4. Ensure sufficient observation cardinality for your TWAP window');
}

// Run if executed directly
if (import.meta.url === `file://${process.argv[1]}`) {
  queryOracle().catch(console.error);
}

export { queryOracle, calculatePriceFromSqrtPriceX96, calculateTWAP };