ForexSwap

⚠️ WARNING: This code has not yet been audited. Use at your own risk.

Overview

ForexSwap is a Uniswap v4 hook implementation of a log normal market maker. It's statistical curve makes liquidity provisioning more passive and capital efficient on foreign currency pairs especially during periods of high volatilty.

Quick Start

Clone and set up the project:

$ git clone https://github.com/robertleifke/forex-swap
$ cd forex-swap
$ bun install
$ forge build

Deploy pools

IPoolManager poolManager = 
ForexSwap forexSwapHook = new ForexSwap(poolManager);

PoolKey memory poolKey = PoolKey({
    currency0: Currency.wrap(address(token0)),
    currency1: Currency.wrap(address(token1)),
    fee: 0,
    tickSpacing: 0,
    hooks: IHooks(address(forexSwapHook))
});
forexSwapHook.initializePool(poolKey);

forexSwapHook.updateForexSwapParams(
    1.1e18,  // mu = 1.1 (10% mean premium)
    2.5e17,  // sigma = 0.25 (25% volatility)
    5e15     // swapFee = 0.5%
);

Testing

Run comprehensive tests for the ForexSwap implementation:

# Run all tests
$ forge test

# Run with detailed output
$ forge test -vvv

# Run gas reporting
$ forge test --gas-report

# Run specific ForexSwap tests
$ forge test --match-contract ForexSwap -vv

Routing

Inverse Normal CDF Implementation

ForexSwap uses the Beasley-Springer-Moro algorithm for computing Φ⁻¹(u):

function _improvedInverseNormalCDF(uint256 u) internal pure returns (int256) {
    // Bounded to [-6σ, +6σ] for numerical stability
}

Newton-Raphson Iteration

For swap calculations, ForexSwap employs iterative solving:

function _solveExactInputWithLiquidity(...) internal view returns (...) {
    // Initial guess using constant product
    // Newton-Raphson iteration to solve: Φ⁻¹(x'/L) + Φ⁻¹(y'/L) = k
    // Convergence threshold: 1e-6 in WAD precision
    // Maximum iterations: 50
}

📄 License

This project is licensed under MIT - see the LICENSE file for details.

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