DeFi Algo Trading Smart Contract

Overview

This project implements an algorithmic trading strategy using Ethereum smart contracts. The strategy involves:

1. Converting ETH to WETH.
2. Swapping WETH for USDC on Uniswap.
3. Supplying USDC,WETH to the Aave protocol to earn interest.
4. Withdrawing USDC,WETH from the Aave protocol.

The smart contract is designed to allow users to interact with it and execute this strategy seamlessly in a decentralized manner.

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Features

• ETH to WETH Conversion: Wraps ETH into WETH for ERC-20 compatibility.
• Uniswap Integration: Swaps WETH for USDC using Uniswap's V3 router.
• Aave Integration: Supplies USDC to Aave's lending pool to earn interest.
• Balance Tracking: Allows users to check their WETH, USDC, and aUSDC balances.
• Modular Design: Each step of the strategy is implemented as a separate function for flexibility.

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Technologies Used

• Solidity (v0.8.20): Smart contract programming language.
• Uniswap V3: Decentralized exchange for token swaps.
• Aave V3: Lending and borrowing protocol for earning interest on deposits.
• Foundry: Development framework for testing and deploying smart contracts.

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Smart Contract Architecture

Contracts

1. AlgoTrading.sol:
   • Core contract implementing the trading strategy.
2. InteractAlgoTrading.sol:
   • Script for interacting with the deployed AlgoTrading contract.

Key Functions

1. swapEthForWeth()

Wraps ETH into WETH using the WETH contract.

2. swapWethForUsdc(uint amountIn)

Swaps a specified amount of WETH for USDC using Uniswap V3.

3. supplyUSDCToAave(uint256 amountIn)

Supplies USDC to Aave's lending pool and mints aUSDC tokens for the user.

4. getATokenBalance()

Fetches the user's aUSDC balance from Aave, confirming successful deposits.

5. getTokenBalances()

Returns the user's WETH and USDC balances.

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Setup Instructions

Prerequisites

• Node.js and npm installed
• Foundry installed (forge and anvil)
• An Ethereum RPC URL (e.g., Infura or Alchemy)

Installation

1. Clone the repository:

2. Install dependencies:

3. Set up environment variables:

• Create a .env file with the following variables:

  RPC_URL=<your_rpc_url>
  PRIVATE_KEY=<your_private_key>
  

4. Compile the contracts:

5. Run tests:

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Deployment

1. Start an Anvil fork of Ethereum Mainnet: anvil --fork-url <RPC_URL> --hardfork shanghai

2. Deploy the smart contract: forge script script/Deploy.s.sol --broadcast --rpc-url <RPC_URL> --private-key .env.PRIVATE_KEY

3. Note down the deployed contract address from the terminal output.

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Usage

Interact with the Contract

Use the provided script (InteractAlgoTrading.sol) to interact with your deployed contract:

1. Check initial balances:

2. Execute the trading strategy step-by-step:

• Convert ETH to WETH.
• Swap WETH for USDC.
• Supply USDC to Aave.
• Withdraw assets from Aave.

3. Verify balances after each step using the console logs

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Example Workflow

1. Deposit 1 ETH into the contract:

• Call swapEthForWeth() with 1 ETH sent as value.

2. Swap WETH for USDC:

• Call swapWethForUsdc() with the desired amount of WETH.

3. Supply USDC,WETH to Aave:

• Call supply functions.

4. Withdraw USDC,WETH from Aave:

• Call withdraw functions.

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Contracts and Addresses

Contract	Address (Mainnet)
WETH	0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2
USDC	0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48
Uniswap Router V3	0xE592427A0AEce92De3Edee1F18E0157C05861564
Aave Pool	0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2
Aave Data Provider	0x057835Ad21a177dbdd3090bB1CAE03EaCF78Fc6d

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Future Improvements

• Add support for multiple trading strategies.
• Implement stop-loss, take-profit,rebalancing mechanisms.
• Integrate additional DeFi protocols like Compound or Curve.
• Support gas optimization techniques like batch transactions.

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License

This project is licensed under MIT License.