AE-0h / HEDGE

Hedge Smart Contract

Description

Providing a hedging mechanism on the Ethereum blockchain. When certain price triggers are hit, the contract either performs a hedge by swapping tokens or unwinds the hedge. The contract integrates with the Uniswap V4 core and leverages the BaseHook mechanism for after-swap activities.

Please follow these steps, if you all ready have Foundry setup ignore steps 1 and 2

Step 1: Install Rust https://doc.rust-lang.org/book/ch01-01-installation.html

Step 2: Install Foundry https://book.getfoundry.sh/getting-started/installation#using-foundryup

Step 3: Build Please run the command below to build your contracts forge build If you get a stack to deep error try running the command below forge build --via-ir

Step 4: Test Please run the command below to test your contracts, the given tests are examples please generate your own. forge test

Features

1. BaseHook Integration: Inherits from the BaseHook contract to interface with Uniswap V4 core functionality.

2. Price Triggers: Users can set price triggers which, when breached, will initiate a hedge or unwind the hedge based on conditions.

3. Binary Search Algorithm: Implements a binary search method to efficiently determine the index to insert a new price trigger.

4. Swap Mechanism: Utilizes the Uniswap V4 pool to swap tokens based on set triggers.

5. SafeERC20: Uses the SafeERC20 library from OpenZeppelin to ensure safe operations with ERC20 tokens.

Structs

• Trigger: Contains details about the hedging trigger, including the price, unwind conditions, and associated token details.

Functions

Public Functions

• setTrigger: Allows users to set a price trigger with specified conditions.

Internal Functions

• _findIndex: Implements a binary search algorithm to find the index for inserting a price in an ordered array.
• _performHedge: Executes the hedge based on the given triggers.
• _performUnwind: Unwinds the hedge based on the given triggers.

External Functions

• lockAcquiredUnwind: Unwinds the hedge by swapping back the tokens when called.
• lockAcquiredHedge: Initiates the hedge by swapping tokens when called.

Hooks

• afterSwap: Executed after a swap on the Uniswap V4 pool. It checks price conditions and decides whether to hedge or unwind.

Dependencies

The contract imports and interacts with various other contracts and libraries, such as:

• Uniswap V4 Core: For core functionalities related to pools, swaps, and liquidity.
• OpenZeppelin: For standard interfaces (IERC20) and utility libraries (SafeERC20).

Usage

1. Setting Triggers: Users can define their hedging triggers by calling the setTrigger function.
2. Trading: The main functionality revolves around the afterSwap function. After a token swap in the associated Uniswap V4 pool, the function checks if any hedge or unwind conditions are met and acts accordingly.

Notes

• Users need to be aware of the hedging conditions they set and the implications of those conditions.
• The hedging mechanism relies on the price of the token in the Uniswap V4 pool.