uniswap-demo

Swapping Synthetic token to WETH

This demo has three parts:

1. create Uniswap liquidity pool (WETH <-> Synthetic)
2. add liquidity to the pool(WETH <-> Synthetic)
3. swap Synthetic token to WETH or vice versa

The code is simple and straight forward but you have to understand basic Uniswap concept, so before starting of running/modifying/reading the code, please check this.

All the scripts needed to create pool, add liquidity or swap tokens locate in scripts folder.

You have first to install dependencies by

yarn install 

Then you can run any of the scripts by

npx ts-node ./scripts/<script-name>.ts

CLI usage

(base) ➜  demo git:(main) ✗ npx ts-node scripts/addLiquidity.ts --help
Usage: addLiquidity [options]

Options:
  --rpc-url <rpcUrl>                 rpc url of javelin rpc (default: "http://devnet.nodekit.xyz/javelin-reverse/rpc")
  --key <key>                        private key to use (default: "0x574f69c77680ca128d2ed233e69513070f66253a654a59327d8435c283379066")
  --weth <wethAddr>                  weth address (default: "0x4200000000000000000000000000000000000006")
  --synthetic <synAddr>              synthetic token address (default: "0x4A679253410272dd5232B3Ff7cF5dbB88f295319")
  --factory <facAddr>                factory address (default: "0xE6E340D132b5f46d1e472DebcD681B2aBc16e57E")
  --nftpm <nonFungibleTokenManager>  unfungible token position manager (default: "0xf5059a5D33d5853360D16C683c16e67980206f36")
  --chainid <chainID>                chain id (default: "45207")
  --amount-weth <amountWeth>         amount of weth to add (default: "100000")
  --amount-syn <amountSyn>           amount of synthetic token to add (default: "100000")
  --pool-fee <poolFee>               pool fee (choices: "lowest", "low", "medium", "high")
  -h, --help                         display help for command

(base) ➜  demo git:(main) ✗ npx ts-node scripts/swapToken.ts --help              
Usage: swapToken [options]

Options:
  --rpc-url <rpcUrl>       rpc url of javelin rpc (default: "http://devnet.nodekit.xyz/javelin-reverse/rpc")
  --quoter <quoterAddr>    quoter contract address (default: "0x4826533B4897376654Bb4d4AD88B7faFD0C98528")
  --key <key>              private key to use (default: "0x574f69c77680ca128d2ed233e69513070f66253a654a59327d8435c283379066")
  --weth <wethAddr>        weth address (default: "0x4200000000000000000000000000000000000006")
  --factory <facAddr>      factory address (default: "0xE6E340D132b5f46d1e472DebcD681B2aBc16e57E")
  --synthetic <synAddr>    synthetic token address (default: "0x4A679253410272dd5232B3Ff7cF5dbB88f295319")
  --router02 <router02>    router02 address (default: "0x99bbA657f2BbC93c02D617f8bA121cB8Fc104Acf")
  --amount <amount>        amount of synthetic token to quote (default: "100000000")
  --chainid <chainID>      chain id (default: "45207")
  --pool-fee <poolFee>     pool fee (choices: "lowest", "low", "medium", "high")
  --direction <direction>  swap direction, weth -> synthetic or synthetic to weth (choices: "weth-syn", "syn-weth")
  -h, --help               display help for command

(base) ➜  demo git:(main) ✗ npx ts-node scripts/quoteSwap.ts --help              
Usage: quoteSwap [options]

Options:
  --rpc-url <rpcUrl>       rpc url of javelin rpc (default: "http://devnet.nodekit.xyz/javelin-reverse/rpc")
  --quoter <quoterAddr>    quoter contract address (default: "0x4826533B4897376654Bb4d4AD88B7faFD0C98528")
  --key <key>              private key to use (default: "0x574f69c77680ca128d2ed233e69513070f66253a654a59327d8435c283379066")
  --weth <wethAddr>        weth address (default: "0x4200000000000000000000000000000000000006")
  --factory <facAddr>      factory address (default: "0xE6E340D132b5f46d1e472DebcD681B2aBc16e57E")
  --synthetic <synAddr>    synthetic token address (default: "0x4A679253410272dd5232B3Ff7cF5dbB88f295319")
  --amount <amount>        amount of synthetic token to quote (default: "100000000")
  --chainid <chainID>      chain id (default: "45207")
  --pool-fee <poolFee>     pool fee (choices: "lowest", "low", "medium", "high")
  --direction <direction>  swap direction, weth -> synthetic or synthetic to weth (choices: "weth-syn", "syn-weth")
  -h, --help               display help for command

A simple cross rollup arbitrage example

Before starting up, you need to set up two liquidity pools between native WETH and the synthetic token on both rollups. The following includes a table describes the token relationships.

Token Name	Chain 45206	Chain 45207
WETH	Wrapped ETH of native token on Chain 45206 (WETH6)	Wrapped ETH of native token on Chain 45207(WETH7)
Synthetic	Synthetic token of native token on Chain 45207 (SYN7)	Synthetic token of native token on Chain 45206(SYN6)

So by setting up liquidity pools, we mean setting up two pools that exchanges:

1. WETH6 <-> SYN7 (on chain 45206)
2. WETH7 <-> SYN6 (on chain 45207)

and with support of Hyperlane path on javelin-rpc, see here, we can bridge native token on one chain to be synthetic token on another chain, e.g. WETH7 -> ETH7 -> SYN7(chain 45206). Hence, there's an opportunity that once there's imbalance on the change rate of the two liquidity pool, for example, on chain 45206 if the change rate from WETH6 -> SYN7 is 10:1 while on chain 45207, the rate from SYN6 -> WETH7 is 5:1. Then we can exchange a large amount of WETH6 to ETH6 then bridge that over to chain 45207 to do a swap. With that swap, we can have 2 times WETH7 swapped than that amount of WETH6 get swapped on chain 45206.

Amount to swap	on Chain 45206	on Chain 45207
10 WETH6	1 SYN7 swapped	2 WETH7 swapped

Steps

1. Estimate how much SYN7 can be swapped on both rollups

   npx ts-node scripts/quoteSwap.ts --direction syn-weth --amount 10000

2. If there's a arbitrage opportunity, we issue a hyperlane transfer, see this tutorial

3. Swap tokens by issuing a swap tx on uniswap

   npx ts-node scripts/swapToken.ts --direction syn-weth --amount 10000