Merge pull request #17 from numotrade/base/tob

Base/tob

README.md

@@ -2,18 +2,9 @@
 
 ![numo_banner](images/numo_readme.png)
 
+Numo uniquely enables **depeg insurance** on all stablecoins and pegged pairs. One could conversly use Numo to speculate on the fluctuations between pegged tokens.  
 
-The repository contains the smart contract suite for **Numo**, the solidity implementation of a [*replicating market maker*](https://arxiv.org/abs/2103.14769) on the EVM. 
-
-TLDR: Numo allows anyone to short or long any token with leverage using pooled liquidity. 
-
-## Replicating Market Maker
-
-The principle idea of a replicating market maker is that any options strategy can be constructed on the EVM simply by altering the trading function of a CFMM. Thus, turning a CFMM into an *exotic leverage token*.
-
-### Leverage Token 
-
-When someone uses **Numo** to get leverage, they are swapping their token into a leverage token which automatically rebalances at every price to reflect 100x leverage when it hits its strike. Think of it as a 2x leverage token on ETH (ex. ETH2x-FLI), but instead its 100x and supports any token.
+The solidity implementation for Numo is contained in this repository and was inspired by math that shows virtually [any option strategy can be constructed using CFMMs](https://arxiv.org/abs/2103.14769). 
 
 ## Local development
 
@@ -23,13 +14,12 @@ This project uses [Foundry](https://github.com/foundry-rs/foundry) as the develo
 
 ```bash
 forge install foundry-rs/forge-std
-
 ```
 To handle high-percision fixed point airithmic, Numo uses the `PRBMath` Library.
 ```bash
 bun add @prb/math
 ```
-Yu need to add this to your remappings.txt file:
+You need to add this to your remappings.txt file:
 
 ```
 @prb/math/=node_modules/@prb/math/
@@ -64,3 +54,7 @@ then, in a separate terminal,
 ```bash
 sh setup.sh
 ```
+
+## Licences
+
+The smart contracts that make up Numo are licensed under the GPL-3.0 unless specified otherwise.

foundry.toml

@@ -8,7 +8,7 @@ libs = ["lib"]
 optimizer = true
 optimizer_runs = 10_000
 out = "out"
-solc = "0.8.17"
+solc = "0.8.19"
 src = "src"
 test = "test"
 

lib/forge-std/src/interfaces/IERC1155.sol

@@ -82,10 +82,10 @@ interface IERC1155 is IERC165 {
     /// @return The _owner's balance of the token type requested
     function balanceOf(address _owner, uint256 _id) external view returns (uint256);
 
-    /// @notice Get the balance of multiple account/token pairs
+    /// @notice Get the balance of multiple account/token QFMMs
     /// @param _owners The addresses of the token holders
     /// @param _ids ID of the tokens
-    /// @return The _owner's balance of the token types requested (i.e. balance for each (owner, id) pair)
+    /// @return The _owner's balance of the token types requested (i.e. balance for each (owner, id) QFMM)
     function balanceOfBatch(address[] calldata _owners, uint256[] calldata _ids)
         external
         view

package.json

@@ -37,6 +37,8 @@
     "prettier:write": "prettier --write \"**/*.{json,md,sol,yml}\""
   },
   "dependencies": {
-    "@openzeppelin/contracts": "^5.0.2"
+    "@openzeppelin/contracts": "^5.0.2",
+    "@prb/math": "^4.0.3",
+    "@prb/test": "^0.6.4"
   }
 }

remappings.txt

@@ -1,2 +1,4 @@
 forge-std/=lib/forge-std/src/
-create3-factory/=lib/create3-factory/src/
+create3-factory/=lib/create3-factory/src/
+@prb/math/=node_modules/@prb/math/
+@prb/test/=node_modules/@prb/test/src/

script/Deploy.s.sol

@@ -1,5 +1,5 @@
 // SPDX-License-Identifier: AGPL-3.0-only
-pragma solidity ^0.8.13;
+pragma solidity 0.8.19;
 
 import { Script } from "forge-std/Script.sol";
 import { console2 } from "forge-std/console2.sol";

script/SetupLocal.s.sol

@@ -65,9 +65,9 @@ contract SetupLocalScript is Script {
     );
 
     // deploy new lendgines
-    console2.log("usdc/weth lendgine: ", factory.createLendgine(usdc, weth, 6, 18, usdcWethBound));
-    console2.log("weth/uni lendgine: ", factory.createLendgine(weth, uni, 18, 18, wethUniBound));
-    console2.log("uni/weth lendgine: ", factory.createLendgine(uni, weth, 18, 18, uniWethBound));
+    console2.log("usdc/weth lendgine: ", factory.createLendgine(usdc, weth, usdcWethBound));
+    console2.log("weth/uni lendgine: ", factory.createLendgine(weth, uni, wethUniBound));
+    console2.log("uni/weth lendgine: ", factory.createLendgine(uni, weth, uniWethBound));
 
     // mint tokens to addr
     IWETH9(weth).deposit{ value: 100 ether }();
@@ -87,7 +87,7 @@ contract SetupLocalScript is Script {
         token1: weth,
         token0Exp: 6,
         token1Exp: 18,
-        upperBound: usdcWethBound,
+        strike: usdcWethBound,
         liquidity: 1 ether / 1e5,
         amount0Min: (reserveUsdc / 1e17) + 1,
         amount1Min: (reserveWeth / 1e5) + 1,
@@ -103,7 +103,7 @@ contract SetupLocalScript is Script {
         token1: uni,
         token0Exp: 18,
         token1Exp: 18,
-        upperBound: wethUniBound,
+        strike: wethUniBound,
         liquidity: 1 ether * 1e2,
         amount0Min: (reserveWeth * 1e2) + 100,
         amount1Min: (reserveUni * 1e2) + 100,
@@ -119,7 +119,7 @@ contract SetupLocalScript is Script {
         token1: weth,
         token0Exp: 18,
         token1Exp: 18,
-        upperBound: uniWethBound,
+        strike: uniWethBound,
         liquidity: 1 ether / 20,
         amount0Min: (reserveWeth / 20) + 20,
         amount1Min: (reserveUni / 20) + 20,
@@ -138,7 +138,7 @@ contract SetupLocalScript is Script {
         token1: uni,
         token0Exp: 18,
         token1Exp: 18,
-        upperBound: wethUniBound,
+        strike: wethUniBound,
         amountIn: 1e18,
         amountBorrow: 4 * 1e18,
         sharesMin: 0,

src/core/Factory.sol

@@ -2,88 +2,91 @@
 pragma solidity ^0.8.4;
 
 import { Lendgine } from "./Lendgine.sol";
-
 import { IFactory } from "./interfaces/IFactory.sol";
+import { IERC20 } from "./interfaces/IERC20.sol";
 
 contract Factory is IFactory {
-  /*//////////////////////////////////////////////////////////////
+
+    /*//////////////////////////////////////////////////////////////
                                  EVENTS
     //////////////////////////////////////////////////////////////*/
 
-  event LendgineCreated(
-    address indexed token0,
-    address indexed token1,
-    uint256 token0Exp,
-    uint256 token1Exp,
-    uint256 indexed upperBound,
-    address lendgine
-  );
+    event LendgineCreated(
+        address indexed token0,
+        address indexed token1,
+        uint256 indexed strike,
+        address lendgine
+    );
 
-  /*//////////////////////////////////////////////////////////////
+    /*//////////////////////////////////////////////////////////////
                                  ERRORS
     //////////////////////////////////////////////////////////////*/
 
-  error SameTokenError();
-
-  error ZeroAddressError();
-
-  error DeployedError();
-
-  error ScaleError();
+    error SameTokenError();
+    error ZeroAddressError();
+    error DeployedError();
+    error UnsupportedTokenError();
 
-  /*//////////////////////////////////////////////////////////////
+    /*//////////////////////////////////////////////////////////////
                             FACTORY STORAGE
     //////////////////////////////////////////////////////////////*/
 
-  /// @inheritdoc IFactory
-  mapping(address => mapping(address => mapping(uint256 => mapping(uint256 => mapping(uint256 => address)))))
-    public
-    override getLendgine;
+    /// @inheritdoc IFactory
+    mapping(address => mapping(address => mapping(uint256 => address)))
+        public
+        override getLendgine;
 
-  /*//////////////////////////////////////////////////////////////
+    /*//////////////////////////////////////////////////////////////
                         TEMPORARY DEPLOY STORAGE
     //////////////////////////////////////////////////////////////*/
 
-  struct Parameters {
-    address token0;
-    address token1;
-    uint128 token0Exp;
-    uint128 token1Exp;
-    uint256 upperBound;
-  }
+    struct Parameters {
+        address token0;
+        address token1;
+        uint256 strike;
+        uint8 token0Decimals;
+        uint8 token1Decimals;
+    }
 
-  /// @inheritdoc IFactory
-  Parameters public override parameters;
+    /// @inheritdoc IFactory
+    Parameters public override parameters;
 
-  /*//////////////////////////////////////////////////////////////
+    /*//////////////////////////////////////////////////////////////
                               FACTORY LOGIC
     //////////////////////////////////////////////////////////////*/
 
-  /// @inheritdoc IFactory
-  function createLendgine(
-    address token0,
-    address token1,
-    uint8 token0Exp,
-    uint8 token1Exp,
-    uint256 upperBound
-  )
-    external
-    override
-    returns (address lendgine)
-  {
-    if (token0 == token1) revert SameTokenError();
-    if (token0 == address(0) || token1 == address(0)) revert ZeroAddressError();
-    if (getLendgine[token0][token1][token0Exp][token1Exp][upperBound] != address(0)) revert DeployedError();
-    if (token0Exp > 18 || token0Exp < 6 || token1Exp > 18 || token1Exp < 6) revert ScaleError();
-
-    parameters =
-      Parameters({ token0: token0, token1: token1, token0Exp: token0Exp, token1Exp: token1Exp, upperBound: upperBound });
-
-    lendgine = address(new Lendgine{ salt: keccak256(abi.encode(token0, token1, token0Exp, token1Exp, upperBound)) }());
-
-    delete parameters;
-
-    getLendgine[token0][token1][token0Exp][token1Exp][upperBound] = lendgine;
-    emit LendgineCreated(token0, token1, token0Exp, token1Exp, upperBound, lendgine);
-  }
-}
+    /// @inheritdoc IFactory
+    function createLendgine(
+        address token0,
+        address token1,
+        uint256 strike
+    )
+        external
+        override
+        returns (address lendgine)
+    {
+        if (token0 == token1) revert SameTokenError();
+        if (token0 == address(0) || token1 == address(0)) revert ZeroAddressError();
+        if (getLendgine[token0][token1][strike] != address(0)) revert DeployedError();
+
+        // Ensure tokens implement the decimals method
+        uint8 token0Decimals = IERC20(token0).decimals();
+        uint8 token1Decimals = IERC20(token1).decimals();
+        if (token0Decimals == 0 || token1Decimals == 0) revert UnsupportedTokenError();
+
+        parameters = Parameters({
+            token0: token0,
+            token1: token1,
+            strike: strike,
+            token0Decimals: token0Decimals,
+            token1Decimals: token1Decimals
+        });
+
+        lendgine = address(new Lendgine{ salt: keccak256(abi.encode(token0, token1, strike)) }());
+
+        delete parameters;
+
+        getLendgine[token0][token1][strike] = lendgine;
+        emit LendgineCreated(token0, token1, strike, lendgine);
+    }
+}

src/core/ImmutableState.sol

@@ -16,23 +16,12 @@ abstract contract ImmutableState is IImmutableState {
   address public immutable override token1;
 
   /// @inheritdoc IImmutableState
-  uint256 public immutable override token0Scale;
-
-  /// @inheritdoc IImmutableState
-  uint256 public immutable override token1Scale;
-
-  /// @inheritdoc IImmutableState
-  uint256 public immutable override upperBound;
+  uint256 public immutable override strike;
 
   constructor() {
     factory = msg.sender;
 
-    uint128 _token0Exp;
-    uint128 _token1Exp;
-
-    (token0, token1, _token0Exp, _token1Exp, upperBound) = Factory(msg.sender).parameters();
+    (token0, token1, strike, , ) = Factory(msg.sender).parameters();
 
-    token0Scale = 10 ** (18 - _token0Exp);
-    token1Scale = 10 ** (18 - _token1Exp);
   }
 }