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AutoSwapV3

This repository contains an LSP1-UniversalReceiverDelegate contract designed for automatic token swaps on transfers using Uniswap V3-based protocol (UniversalSwaps).

This is an educational project and only for test purposes. Still a work in progress and is being tested with different configs.

Overview

The AutoSwapV3 contract is specifically designed to work with LSP7-DigitalAsset tokens, not ERC20 tokens. This is because ERC20 lacks the ability to inform the recipient about the transfer, preventing the recipient from deciding how to react to it. With LSP7, recipient can be notified about the transfers, and then can delegate the reaction to external contracts that decides how to react on transfer. In this case, users will use the AutoSwapV3 contract.

Key Features

  • Automatic token swaps on transfer
  • Works with LSP7-DigitalAsset tokens
  • Works with UniversalSwapsV3

Flow Diagram

The following diagram illustrates the flow of a token transfer and automatic swap:

sequenceDiagram
    participant User
    participant TokenA as Token A Contract
    participant UP as Universal Profile
    participant AutoSwapV3
    participant UR as Universal Router
    
    User->>TokenA: Call transfer function
    TokenA->>UP: Inform about transfer
    UP->>AutoSwapV3: Inform about transfer
    AutoSwapV3->>UP: UP call to the token to start the swap
    UP->>TokenA: Call to Authorize the Universal Router
    TokenA->>UR: Authorize the token of the profile for a swap
    UR->>UR: Execute the Swap
    UR->>TokenA: Return swap result
    TokenA->>UP: Return result
    UP->>AutoSwapV3: Return result
    AutoSwapV3->>UP: Finalize swap
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  1. User calls the transfer function on Token A
  2. Token A informs the recipient's Universal Profile about the transfer
  3. The Universal Profile informs AutoSwapV3 about the transfer
  4. AutoSwapV3 calls the Universal Profile to authorize the swap
  5. The Universal Profile calls authorizeOperator on the token contract
  6. The token contract authorize the UniversalRouter and the authorization data contain the logic for the swap
  7. The swap result is returned through the chain of contracts back to AutoSwapV3 and the UniversalProfile

Setup

This contract needs to be set as the UniversalReceiverDelegate for a Universal Profile and should be given the necessary permissions to execute from this profile. In the case of ownership via LSP6-KeyManager, it should be given SUPER_CALL and REENTRANCY permissions.

Oracle Integration

The AutoSwapV3 contract should include an oracle that feeds the minimum amount of tokens that the user is willing to receive. This amount should be reasonable based on a preferred deviation to protect against sandwich attacks.

Usage

To use the AutoSwapV3 contract:

  1. Deploy the AutoSwapV3 contract
  2. Set it as the UniversalReceiverDelegate for your Universal Profile
  3. Grant necessary permissions (SUPER_CALL and REENTRANCY) if using LSP6-KeyManager
  4. Configure minimum swap amounts for each token

Usage

Build

$ forge build

Gas Snapshots

$ forge snapshot

Contributing

Contributions are welcome! Please feel free to submit a Pull Request.

License

MIT License