/* Copyright 2020 DODO ZOO. SPDX-License-Identifier: Apache-2.0 */ pragma solidity 0.6.9; pragma experimental ABIEncoderV2; import {SafeMath} from "../lib/SafeMath.sol"; import {DecimalMath} from "../lib/DecimalMath.sol"; import {DODOMath} from "../lib/DODOMath.sol"; /** * @title Pricing * @author DODO Breeder * * @notice DODO Pricing model */ library PMMPricing { using SafeMath for uint256; enum RState {ONE, ABOVE_ONE, BELOW_ONE} struct PMMState { uint256 i; uint256 K; uint256 B; uint256 Q; uint256 B0; uint256 Q0; RState R; } // ============ buy & sell ============ function sellBaseToken(PMMState memory state, uint256 payBaseAmount) internal pure returns (uint256 receiveQuoteAmount, RState newR) { if (state.R == RState.ONE) { // case 1: R=1 // R falls below one receiveQuoteAmount = _ROneSellBaseToken(state, payBaseAmount); newR = RState.BELOW_ONE; } else if (state.R == RState.ABOVE_ONE) { uint256 backToOnePayBase = state.B0.sub(state.B); uint256 backToOneReceiveQuote = state.Q.sub(state.Q0); // case 2: R>1 // complex case, R status depends on trading amount if (payBaseAmount < backToOnePayBase) { // case 2.1: R status do not change receiveQuoteAmount = _RAboveSellBaseToken(state, payBaseAmount); newR = RState.ABOVE_ONE; if (receiveQuoteAmount > backToOneReceiveQuote) { // [Important corner case!] may enter this branch when some precision problem happens. And consequently contribute to negative spare quote amount // to make sure spare quote>=0, mannually set receiveQuote=backToOneReceiveQuote receiveQuoteAmount = backToOneReceiveQuote; } } else if (payBaseAmount == backToOnePayBase) { // case 2.2: R status changes to ONE receiveQuoteAmount = backToOneReceiveQuote; newR = RState.ONE; } else { // case 2.3: R status changes to BELOW_ONE receiveQuoteAmount = backToOneReceiveQuote.add( _ROneSellBaseToken(state, payBaseAmount.sub(backToOnePayBase)) ); newR = RState.BELOW_ONE; } } else { // state.R == RState.BELOW_ONE // case 3: R<1 receiveQuoteAmount = _RBelowSellBaseToken(state, payBaseAmount); newR = RState.BELOW_ONE; } } function sellQuoteToken(PMMState memory state, uint256 payQuoteAmount) internal pure returns (uint256 receiveBaseAmount, RState newR) { if (state.R == RState.ONE) { receiveBaseAmount = _ROneSellQuoteToken(state, payQuoteAmount); newR = RState.ABOVE_ONE; } else if (state.R == RState.ABOVE_ONE) { receiveBaseAmount = _RAboveSellQuoteToken(state, payQuoteAmount); newR = RState.ABOVE_ONE; } else { uint256 backToOnePayQuote = state.Q0.sub(state.Q); uint256 backToOneReceiveBase = state.B.sub(state.B0); if (payQuoteAmount < backToOnePayQuote) { receiveBaseAmount = _RBelowSellQuoteToken(state, payQuoteAmount); newR = RState.BELOW_ONE; if (receiveBaseAmount > backToOneReceiveBase) { receiveBaseAmount = backToOneReceiveBase; } } else if (payQuoteAmount == backToOnePayQuote) { receiveBaseAmount = backToOneReceiveBase; newR = RState.ONE; } else { receiveBaseAmount = backToOneReceiveBase.add( _ROneSellQuoteToken(state, payQuoteAmount.sub(backToOnePayQuote)) ); newR = RState.ABOVE_ONE; } } } // ============ R = 1 cases ============ function _ROneSellBaseToken(PMMState memory state, uint256 payBaseAmount) internal pure returns ( uint256 // receiveQuoteToken ) { // in theory Q2 <= targetQuoteTokenAmount // however when amount is close to 0, precision problems may cause Q2 > targetQuoteTokenAmount return DODOMath._SolveQuadraticFunctionForTrade( state.Q0, state.Q0, payBaseAmount, state.i, state.K ); } function _ROneSellQuoteToken(PMMState memory state, uint256 payQuoteAmount) internal pure returns ( uint256 // receiveBaseToken ) { return DODOMath._SolveQuadraticFunctionForTrade( state.B0, state.B0, payQuoteAmount, DecimalMath.reciprocalFloor(state.i), state.K ); } // ============ R < 1 cases ============ function _RBelowSellQuoteToken(PMMState memory state, uint256 payQuoteAmount) internal pure returns ( uint256 // receiveBaseToken ) { return DODOMath._GeneralIntegrate( state.Q0, state.Q.add(payQuoteAmount), state.Q, DecimalMath.reciprocalFloor(state.i), state.K ); } function _RBelowSellBaseToken(PMMState memory state, uint256 payBaseAmount) internal pure returns ( uint256 // receiveQuoteToken ) { return DODOMath._SolveQuadraticFunctionForTrade( state.Q0, state.Q, payBaseAmount, state.i, state.K ); } // ============ R > 1 cases ============ function _RAboveSellBaseToken(PMMState memory state, uint256 payBaseAmount) internal pure returns ( uint256 // receiveQuoteToken ) { return DODOMath._GeneralIntegrate( state.B0, state.B.add(payBaseAmount), state.B, state.i, state.K ); } function _RAboveSellQuoteToken(PMMState memory state, uint256 payQuoteAmount) internal pure returns ( uint256 // receiveBaseToken ) { return DODOMath._SolveQuadraticFunctionForTrade( state.B0, state.B, payQuoteAmount, DecimalMath.reciprocalFloor(state.i), state.K ); } // ============ Helper functions ============ function adjustedTarget(PMMState memory state) internal pure { if (state.R == RState.BELOW_ONE) { state.Q0 = DODOMath._SolveQuadraticFunctionForTarget( state.Q, state.B.sub(state.B0), state.i, state.K ); } else if (state.R == RState.ABOVE_ONE) { state.B0 = DODOMath._SolveQuadraticFunctionForTarget( state.B, state.Q.sub(state.Q0), DecimalMath.reciprocalFloor(state.i), state.K ); } } function getMidPrice(PMMState memory state) internal pure returns (uint256) { if (state.R == RState.BELOW_ONE) { uint256 R = DecimalMath.divFloor(state.Q0.mul(state.Q0).div(state.Q), state.Q); R = DecimalMath.ONE.sub(state.K).add(DecimalMath.mulFloor(state.K, R)); return DecimalMath.divFloor(state.i, R); } else { uint256 R = DecimalMath.divFloor(state.B0.mul(state.B0).div(state.B), state.B); R = DecimalMath.ONE.sub(state.K).add(DecimalMath.mulFloor(state.K, R)); return DecimalMath.mulFloor(state.i, R); } } }