Pools
Liquidity

Liquidity

Liquidity operations

Add liquidity

EL(tn)=EL(tn1)+amountU+B(tn1)r(tn1)(tntn1)EL(t_n) = EL(t_{n-1})+amount_U+B(t_{n-1})*r(t_{n-1})*(t_{n}-t_{n-1})
mint  diesel  tokens=amountUdiesel  supply(tn)EL(tn1)mint\;diesel\;tokens =amount_{U}*\frac{diesel\;supply(t_n)}{EL(t_{n-1})}

where amount_U - is amount of added underlying liquidity. Then called Pool Update().

Remove liquidity

EL(tn)=EL(tn1)+EL(t_n) = EL(t_{n-1})+
+B(tn1)r(tn1)(tntn1)amountLPEL(tn)diesel  supply(tn),+B(t_{n-1})*r(t_{n-1})*(t_{n}-t_{n-1})-amount_{LP}*\frac{EL(t_n)}{diesel\;supply(t_n)},
burn  diesel  tokens=amountLPburn\;diesel\;tokens =amount_{LP}

where amount_LP - amount of removed LP tokens.Then call Pool Update().

Adding / removing liquidity programatically

addLiquidity

Adds liquidity to pool and send diesel (LP) tokens back to LP:

  • Transfers underlying asset to pool
  • Mints diesel (LP) token with current diesel rate
  • Updates expected liquidity
  • Updates borrow rate
function addLiquidity(
        uint256 amount,
        address onBehalfOf,
        uint256 referralCode
    ) external 
ParameterDescription
amountAmount of tokens to be transfer
onBehalfOfThe address that will receive the diesel tokens, same as msg.sender if the user wants to receive them on his own wallet, or a different address if the beneficiary of diesel tokens is a different wallet
referralCodeCode used to register the integrator originating the operation, for potential rewards. 0 if the action is executed directly by the user, without any middle-man

removeLiquidity

function removeLiquidity(uint256 amount, address to)
external
ParameterDescription
amountAmount of tokens to be transfer
toAddress to transfer liquidity

It burns user diesel (LP) tokens and returns underlying tokens:

  • Transfers to LP underlying account = amount * diesel rate
  • Burns diesel tokens
  • Decreases underlying amount from total_liquidity
  • Updates borrow rate
Last updated on December 25, 2022