maks-ivanov / amm-demo

Algorand AMM Demo

This demo is an on-chain automated market maker using smart contracts on the Algorand blockchain. This AMM facilitates swaps between tokens using the constant product formula and charges a configurable fee.

Users are able to supply liquidity, for which they receive pool tokens that entitle them to redeem the corresponding portion of pool reserves plus accrued fees. First liquidity provider can supply tokens in any proportion. Subsequent users supply tokens at current market rate.

Providers can withdraw liquidity at current market rate, i.e. the current ratio of the reserve.

Usage

The file amm/operations.py provides a set of functions that can be used to create and interact with AMM. See that file for documentation.

ToDo

• Features:
  • "Minimum received" swaps
  • "Exact received" swaps
  • Price range for supplying/withdrawing liquidity
• Maintenance
  • Simplify contract code
  • Tests
  • Docs

Development Setup

This repo requires Python 3.6 or higher. We recommend you use a Python virtual environment to install the required dependencies.

Set up venv (one time):

• python3 -m venv venv

Active venv:

• . venv/bin/activate (if your shell is bash/zsh)
• . venv/bin/activate.fish (if your shell is fish)

Install dependencies:

• pip install -r requirements.txt

Run tests:

• First, start an instance of sandbox (requires Docker): ./sandbox up nightly
• pytest
• When finished, the sandbox can be stopped with ./sandbox down

Format code:

• black .