Notes

PreviousSlot 3: Solidity 201 NextOpenZeppelin SafeERC20

Last updated 1 year ago

Was this helpful?

Notes

Solidity supports multiple inheritance including polymorphism:
1. Polymorphism means that a function call (internal and external) always executes the function of the same name (and parameter types) in the most derived contract in the inheritance hierarchy
2. When a contract inherits from other contracts, only a single contract is created on the blockchain, and the code from all the base contracts is compiled into the created contract.
3. Function Overriding: Base functions can be overridden by inheriting contracts to change their behavior if they are marked as virtual. The overriding function must then use the override keyword in the function header.
4. Languages that allow multiple inheritance have to deal with several problems. One is the Diamond Problem. Solidity is similar to Python in that it uses “C3 Linearization” to force a specific order in the directed acyclic graph (DAG) of base classes. So when a function is called that is defined multiple times in different contracts, the given bases are searched from right to left (left to right in Python) in a depth-first manner, stopping at the first match.
Function Overriding Changes: The overriding function may only change the visibility of the overridden function from external to public. The mutability may be changed to a more strict one following the order: nonpayable can be overridden by view and pure. view can be overridden by pure. payable is an exception and cannot be changed to any other mutability.
Library Restrictions: In comparison to contracts, libraries are restricted in the following ways:
1. they cannot have state variables
2. they cannot inherit nor be inherited
3. they cannot receive Ether
4. they cannot be destroyed
5. it can only access state variables of the calling contract if they are explicitly supplied (it would have no way to name them, otherwise)
6. Library functions can only be called directly (i.e. without the use of DELEGATECALL) if they do not modify the state (i.e. if they are view or pure functions), because libraries are assumed to be stateless
Storage Layout & Structs/Arrays:
1. Structs and array data always start a new slot and their items are packed tightly according to these rules
2. Items following struct or array data always start a new storage slot
3. The elements of structs and arrays are stored after each other, just as if they were given as individual values.
Storage Layout & Inheritance: For contracts that use inheritance, the ordering of state variables is determined by the C3-linearized order of contracts starting with the most base-ward contract. If allowed by the above rules, state variables from different contracts do share the same storage slot.
Storage Layout for Dynamic Arrays: If the storage location of the array ends up being a slot p after applying the storage layout rules, this slot stores the number of elements in the array (byte arrays and strings are an exception). Array data is located starting at keccak256(p) and it is laid out in the same way as statically-sized array data would: One element after the other, potentially sharing storage slots if the elements are not longer than 16 bytes. Dynamic arrays of dynamic arrays apply this rule recursively.
Storage Layout for Mappings: For mappings, the slot stays empty, but it is still needed to ensure that even if there are two mappings next to each other, their content ends up at different storage locations. The value corresponding to a mapping key k is located at keccak256(h(k) . p) where . is concatenation and h is a function that is applied to the key depending on its type: 1) for value types, h pads the value to 32 bytes in the same way as when storing the value in memory. 2) for strings and byte arrays, h computes the keccak256 hash of the unpadded data. If the mapping value is a non-value type, the computed slot marks the start of the data. If the value is of struct type, for example, you have to add an offset corresponding to the struct member to reach the member.
Storage Layout for bytes and string: bytes and string are encoded identically. In general, the encoding is similar to byte1[], in the sense that there is a slot for the array itself and a data area that is computed using a keccak256 hash of that slot’s position. However, for short values (shorter than 32 bytes) the array elements are stored together with the length in the same slot.
1. if the data is at most 31 bytes long, the elements are stored in the higher-order bytes (left aligned) and the lowest-order byte stores the value length * 2. For byte arrays that store data which is 32 or more bytes long, the main slot p stores length * 2 + 1 and the data is stored as usual in keccak256(p). This means that you can distinguish a short array from a long array by checking if the lowest bit is set: short (not set) and long (set).
OpenZeppelin ERC777: Like ERC20, ERC777 is a standard for fungible tokens with improvements such as getting rid of the confusion around decimals, minting and burning with proper events, among others, but its killer feature is receive hooks. ERC777 is backwards compatible with ERC20 (See )
1. A hook is simply a function in a contract that is called when tokens are sent to it, meaning accounts and contracts can react to receiving tokens. This enables a lot of interesting use cases, including atomic purchases using tokens (no need to do approve and transferFrom in two separate transactions), rejecting reception of tokens (by reverting on the hook call), redirecting the received tokens to other addresses, among many others.
2. Both contracts and regular addresses can control and reject which token they send by registering a tokensToSend hook. (Rejection is done by reverting in the hook function.)
3. Both contracts and regular addresses can control and reject which token they receive by registering a tokensReceived hook. (Rejection is done by reverting in the hook function.)
4. The tokensReceived hook allows to send tokens to a contract and notify it in a single transaction, unlike ERC-20 which requires a double call (approve/transferFrom) to achieve this.
5. Furthermore, since contracts are required to implement these hooks in order to receive tokens, no tokens can get stuck in a contract that is unaware of the ERC777 protocol, as has happened countless times when using ERC20s.
6. It mandates that decimals always returns a fixed value of 18, so there’s no need to set it ourselves
7. **Has a concept of defaultOperators which are special accounts (usually other smart contracts) that will be able to transfer tokens on behalf of their holders
8. Implements send (besides transfer) where if the recipient contract has not registered itself as aware of the ERC777 protocol then transfers to it are disabled to prevent tokens from being locked forever. Accounts can be notified of tokens being sent to them by having a contract implement this IERC777Recipient interface and registering it on the ERC1820 global registry.
OpenZeppelin ERC1155: is a novel token standard that aims to take the best from previous standards to create a fungibility-agnostic and gas-efficient token contract.
1. The distinctive feature of ERC1155 is that it uses a single smart contract to represent multiple tokens at once
2. Accounts have a distinct balance for each token id, and non-fungible tokens are implemented by simply minting a single one of them.
3. This approach leads to massive gas savings for projects that require multiple tokens. Instead of deploying a new contract for each token type, a single ERC1155 token contract can hold the entire system state, reducing deployment costs and complexity.
4. Because all state is held in a single contract, it is possible to operate over multiple tokens in a single transaction very efficiently. The standard provides two functions, balanceOfBatch and safeBatchTransferFrom, that make querying multiple balances and transferring multiple tokens simpler and less gas-intensive.
OpenZeppelin PullPayment: provides a pull-payment strategy, where the paying contract doesn’t invoke any functions on the receiver account which must withdraw its payments itself. Pull-payments are often considered the best practice when it comes to sending Ether, security-wise. It prevents recipients from blocking execution and eliminates reentrancy concerns.
OpenZeppelin Address: Collection of functions related to the address type:
1. isContract(address account) → bool: Returns true if account is a contract. It is unsafe to assume that an address for which this function returns false is an externally-owned account (EOA) and not a contract. Among others, isContract will return false for the following types of addresses: 1) an externally-owned account 2) a contract in construction 3) an address where a contract will be created 4) an address where a contract lived, but was destroyed
2. sendValue(address payable recipient, uint256 amount): Replacement for Solidity’s transfer: sends amount wei to recipient, forwarding all available gas and reverting on errors. EIP1884 increases the gas cost of certain opcodes, possibly making contracts go over the 2300 gas limit imposed by transfer, making them unable to receive funds via transfer. sendValue removes this limitation.
3. functionCall(address target, bytes data) → bytes: Performs a Solidity function call using a low level call. A plain call is an unsafe replacement for a function call: use this function instead. If target reverts with a revert reason, it is bubbled up by this function (like regular Solidity function calls). Returns the raw returned data. Requirements: target must be a contract. calling target with data must not revert.
4. functionCallWithValue(address target, bytes data, uint256 value) → bytes: Same as functionCall, but also transferring value wei to target. Requirements: 1) the calling contract must have an ETH balance of at least value. 2) the called Solidity function must be payable.
5. functionStaticCall(address target, bytes data) → bytes: Same as functionCall, but performing a static call.
6. functionDelegateCall(address target, bytes data) → bytes: Same as functionCall, but performing a delegate call.
OpenZeppelin ECDSA: provides functions for recovering and managing Ethereum account ECDSA signatures. These are often generated via web3.eth.sign, and are a 65 byte array (of type bytes in Solidity) arranged the following way: [[v (1)], [r (32)], [s (32)]]. The data signer can be recovered with ECDSA.recover, and its address compared to verify the signature. Most wallets will hash the data to sign and add the prefix '\x19Ethereum Signed Message:\n', so when attempting to recover the signer of an Ethereum signed message hash, you’ll want to use toEthSignedMessageHash.
1. The ecrecover EVM opcode allows for malleable (non-unique) signatures. This library prevents that by requiring the s value to be in the lower half order, and the v value to be either 27 or 28.
OpenZeppelin MerkleProof: This deals with verification of Merkle Trees proofs.
1. verify: which can prove that some value is part of a Merkle tree. Returns true if a leaf can be proved to be a part of a Merkle tree defined by root. For this, a proof must be provided, containing sibling hashes on the branch from the leaf to the root of the tree. Each pair of leaves and each pair of pre-images are assumed to be sorted.
OpenZeppelin EIP712: EIP 712 is a standard for hashing and signing of typed structured data. This contract implements the EIP 712 domain separator (_domainSeparatorV4) that is used as part of the encoding scheme, and the final step of the encoding to obtain the message digest that is then signed via ECDSA (_hashTypedDataV4). Protocols need to implement the type-specific encoding they need in their contracts using a combination of abi.encode and keccak256.
1. constructor(string name, string version): Initializes the domain separator and parameter caches. The meaning of name and version is specified in EIP 712: 1) name is the user readable name of the signing domain, i.e. the name of the DApp or the protocol 2) version: the current major version of the signing domain.
2. _domainSeparatorV4() → bytes32: Returns the domain separator for the current chain.
  1. _hashTypedDataV4(bytes32 structHash) → bytes32: Given an already hashed struct, this function returns the hash of the fully encoded EIP712 message for this domain. This hash can be used together with ECDSA.recover to obtain the signer of a message.
OpenZeppelin ERC165: In Solidity, it’s frequently helpful to know whether or not a contract supports an interface you’d like to use. ERC165 is a standard that helps do runtime interface detection using a lookup table. You can register interfaces using _registerInterface(bytes4) and supportsInterface(bytes4 interfaceId) returns a bool indicating if that interface is supported or not.
WETH: WETH stands for Wrapped Ether. For protocols that work with ERC-20 tokens but also need to handle Ether, WETH contracts allow converting Ether to its ERC-20 equivalent WETH (called wrapping) and vice-versa (called unwrapping). WETH can be created by sending ether to a WETH smart contract where the Ether is stored and in turn receiving the WETH ERC-20 token at a 1:1 ratio. This WETH can be sent back to the same smart contract to be “unwrapped” i.e. redeemed back for the original Ether at a 1:1 ratio. The most widely used WETH contract is which holds more than 7 million Ether for now.
Uniswap V2: Uniswap is an automated liquidity protocol powered by a constant product formula and implemented in a system of non-upgradeable smart contracts on the Ethereum blockchain. The automated market making algorithm used by Uniswap is xy=k, where x and y represent a token pair that allow one token to be exchanged for the other as long as the “constant product” formula is preserved i.e. trades must not change the product (k) of a pair’s reserve balances (x and y). Core concepts:*
1. Pools: Each Uniswap liquidity pool is a trading venue for a pair of ERC20 tokens. When a pool contract is created, its balances of each token are 0; in order for the pool to begin facilitating trades, someone must seed it with an initial deposit of each token. This first liquidity provider is the one who sets the initial price of the pool. They are incentivized to deposit an equal value of both tokens into the pool. Whenever liquidity is deposited into a pool, unique tokens known as liquidity tokens are minted and sent to the provider’s address. These tokens represent a given liquidity provider’s contribution to a pool.
2. Swaps: allows one to trade one ERC-20 token for another, where one token is withdrawn (purchased) and a proportional amount of the other deposited (sold), in order to maintain the constant xy=k*
3. Flash Swaps: allows one to withdraw up to the full reserves of any ERC20 token on Uniswap and execute arbitrary logic at no upfront cost, provided that by the end of the transaction they either: 1) pay for the withdrawn ERC20 tokens with the corresponding pair tokens 2) return the withdrawn ERC20 tokens along with a small fee
4. Oracles: enables developers to build highly decentralized and manipulation-resistant on-chain price oracles. A price oracle is any tool used to view price information about a given asset. Every pair measures (but does not store) the market price at the beginning of each block, before any trades take place i.e. price at the end of the previous block which is added to a single cumulative-price variable weighted by the amount of time this price existed. This variable can be used by external contracts to track accurate time-weighted average prices (TWAPs) across any time interval.
Uniswap V3:
1. Concentrated liquidity: giving individual LPs granular control over what price ranges their capital is allocated to. Individual positions are aggregated together into a single pool, forming one combined curve for users to trade against
2. Multiple fee tiers: allowing LPs to be appropriately compensated for taking on varying degrees of risk
3. V3 oracles are capable of providing time-weighted average prices (TWAPs) on demand for any period within the last ~9 days. This removes the need for integrators to checkpoint historical values.
Chainlink Oracles & Price Feeds: Chainlink Price Feeds provide aggregated data (via its AggregatorV3Interface contract interface) from various high quality data providers, fed on-chain by decentralized oracles on the Chainlink Network. To get price data into smart contracts for an asset that isn’t covered by an existing price feed, such as the price of a particular stock, one can customize Chainlink oracles to call any external API.

PreviousSlot 3: Solidity 201 NextOpenZeppelin SafeERC20

Last updated 1 year ago

Was this helpful?

Solidity supports multiple inheritance including polymorphism:
1. Polymorphism means that a function call (internal and external) always executes the function of the same name (and parameter types) in the most derived contract in the inheritance hierarchy
2. When a contract inherits from other contracts, only a single contract is created on the blockchain, and the code from all the base contracts is compiled into the created contract.
3. Function Overriding: Base functions can be overridden by inheriting contracts to change their behavior if they are marked as virtual. The overriding function must then use the override keyword in the function header.
4. Languages that allow multiple inheritance have to deal with several problems. One is the Diamond Problem. Solidity is similar to Python in that it uses “C3 Linearization” to force a specific order in the directed acyclic graph (DAG) of base classes. So when a function is called that is defined multiple times in different contracts, the given bases are searched from right to left (left to right in Python) in a depth-first manner, stopping at the first match.
Function Overriding Changes: The overriding function may only change the visibility of the overridden function from external to public. The mutability may be changed to a more strict one following the order: nonpayable can be overridden by view and pure. view can be overridden by pure. payable is an exception and cannot be changed to any other mutability.
Library Restrictions: In comparison to contracts, libraries are restricted in the following ways:
1. they cannot have state variables
2. they cannot inherit nor be inherited
3. they cannot receive Ether
4. they cannot be destroyed
5. it can only access state variables of the calling contract if they are explicitly supplied (it would have no way to name them, otherwise)
6. Library functions can only be called directly (i.e. without the use of DELEGATECALL) if they do not modify the state (i.e. if they are view or pure functions), because libraries are assumed to be stateless
Storage Layout & Structs/Arrays:
1. Structs and array data always start a new slot and their items are packed tightly according to these rules
2. Items following struct or array data always start a new storage slot
3. The elements of structs and arrays are stored after each other, just as if they were given as individual values.
Storage Layout & Inheritance: For contracts that use inheritance, the ordering of state variables is determined by the C3-linearized order of contracts starting with the most base-ward contract. If allowed by the above rules, state variables from different contracts do share the same storage slot.
Storage Layout for Dynamic Arrays: If the storage location of the array ends up being a slot p after applying the storage layout rules, this slot stores the number of elements in the array (byte arrays and strings are an exception). Array data is located starting at keccak256(p) and it is laid out in the same way as statically-sized array data would: One element after the other, potentially sharing storage slots if the elements are not longer than 16 bytes. Dynamic arrays of dynamic arrays apply this rule recursively.
Storage Layout for Mappings: For mappings, the slot stays empty, but it is still needed to ensure that even if there are two mappings next to each other, their content ends up at different storage locations. The value corresponding to a mapping key k is located at keccak256(h(k) . p) where . is concatenation and h is a function that is applied to the key depending on its type: 1) for value types, h pads the value to 32 bytes in the same way as when storing the value in memory. 2) for strings and byte arrays, h computes the keccak256 hash of the unpadded data. If the mapping value is a non-value type, the computed slot marks the start of the data. If the value is of struct type, for example, you have to add an offset corresponding to the struct member to reach the member.
Storage Layout for bytes and string: bytes and string are encoded identically. In general, the encoding is similar to byte1[], in the sense that there is a slot for the array itself and a data area that is computed using a keccak256 hash of that slot’s position. However, for short values (shorter than 32 bytes) the array elements are stored together with the length in the same slot.
1. if the data is at most 31 bytes long, the elements are stored in the higher-order bytes (left aligned) and the lowest-order byte stores the value length * 2. For byte arrays that store data which is 32 or more bytes long, the main slot p stores length * 2 + 1 and the data is stored as usual in keccak256(p). This means that you can distinguish a short array from a long array by checking if the lowest bit is set: short (not set) and long (set).
OpenZeppelin ERC777: Like ERC20, ERC777 is a standard for fungible tokens with improvements such as getting rid of the confusion around decimals, minting and burning with proper events, among others, but its killer feature is receive hooks. ERC777 is backwards compatible with ERC20 (See )
1. A hook is simply a function in a contract that is called when tokens are sent to it, meaning accounts and contracts can react to receiving tokens. This enables a lot of interesting use cases, including atomic purchases using tokens (no need to do approve and transferFrom in two separate transactions), rejecting reception of tokens (by reverting on the hook call), redirecting the received tokens to other addresses, among many others.
2. Both contracts and regular addresses can control and reject which token they send by registering a tokensToSend hook. (Rejection is done by reverting in the hook function.)
3. Both contracts and regular addresses can control and reject which token they receive by registering a tokensReceived hook. (Rejection is done by reverting in the hook function.)
4. The tokensReceived hook allows to send tokens to a contract and notify it in a single transaction, unlike ERC-20 which requires a double call (approve/transferFrom) to achieve this.
5. Furthermore, since contracts are required to implement these hooks in order to receive tokens, no tokens can get stuck in a contract that is unaware of the ERC777 protocol, as has happened countless times when using ERC20s.
6. It mandates that decimals always returns a fixed value of 18, so there’s no need to set it ourselves
7. **Has a concept of defaultOperators which are special accounts (usually other smart contracts) that will be able to transfer tokens on behalf of their holders
8. Implements send (besides transfer) where if the recipient contract has not registered itself as aware of the ERC777 protocol then transfers to it are disabled to prevent tokens from being locked forever. Accounts can be notified of tokens being sent to them by having a contract implement this IERC777Recipient interface and registering it on the ERC1820 global registry.
OpenZeppelin ERC1155: is a novel token standard that aims to take the best from previous standards to create a fungibility-agnostic and gas-efficient token contract.
1. The distinctive feature of ERC1155 is that it uses a single smart contract to represent multiple tokens at once
2. Accounts have a distinct balance for each token id, and non-fungible tokens are implemented by simply minting a single one of them.
3. This approach leads to massive gas savings for projects that require multiple tokens. Instead of deploying a new contract for each token type, a single ERC1155 token contract can hold the entire system state, reducing deployment costs and complexity.
4. Because all state is held in a single contract, it is possible to operate over multiple tokens in a single transaction very efficiently. The standard provides two functions, balanceOfBatch and safeBatchTransferFrom, that make querying multiple balances and transferring multiple tokens simpler and less gas-intensive.
OpenZeppelin PullPayment: provides a pull-payment strategy, where the paying contract doesn’t invoke any functions on the receiver account which must withdraw its payments itself. Pull-payments are often considered the best practice when it comes to sending Ether, security-wise. It prevents recipients from blocking execution and eliminates reentrancy concerns.
OpenZeppelin Address: Collection of functions related to the address type:
1. isContract(address account) → bool: Returns true if account is a contract. It is unsafe to assume that an address for which this function returns false is an externally-owned account (EOA) and not a contract. Among others, isContract will return false for the following types of addresses: 1) an externally-owned account 2) a contract in construction 3) an address where a contract will be created 4) an address where a contract lived, but was destroyed
2. sendValue(address payable recipient, uint256 amount): Replacement for Solidity’s transfer: sends amount wei to recipient, forwarding all available gas and reverting on errors. EIP1884 increases the gas cost of certain opcodes, possibly making contracts go over the 2300 gas limit imposed by transfer, making them unable to receive funds via transfer. sendValue removes this limitation.
3. functionCall(address target, bytes data) → bytes: Performs a Solidity function call using a low level call. A plain call is an unsafe replacement for a function call: use this function instead. If target reverts with a revert reason, it is bubbled up by this function (like regular Solidity function calls). Returns the raw returned data. Requirements: target must be a contract. calling target with data must not revert.
4. functionCallWithValue(address target, bytes data, uint256 value) → bytes: Same as functionCall, but also transferring value wei to target. Requirements: 1) the calling contract must have an ETH balance of at least value. 2) the called Solidity function must be payable.
5. functionStaticCall(address target, bytes data) → bytes: Same as functionCall, but performing a static call.
6. functionDelegateCall(address target, bytes data) → bytes: Same as functionCall, but performing a delegate call.
OpenZeppelin ECDSA: provides functions for recovering and managing Ethereum account ECDSA signatures. These are often generated via web3.eth.sign, and are a 65 byte array (of type bytes in Solidity) arranged the following way: [[v (1)], [r (32)], [s (32)]]. The data signer can be recovered with ECDSA.recover, and its address compared to verify the signature. Most wallets will hash the data to sign and add the prefix '\x19Ethereum Signed Message:\n', so when attempting to recover the signer of an Ethereum signed message hash, you’ll want to use toEthSignedMessageHash.
1. The ecrecover EVM opcode allows for malleable (non-unique) signatures. This library prevents that by requiring the s value to be in the lower half order, and the v value to be either 27 or 28.
OpenZeppelin MerkleProof: This deals with verification of Merkle Trees proofs.
1. verify: which can prove that some value is part of a Merkle tree. Returns true if a leaf can be proved to be a part of a Merkle tree defined by root. For this, a proof must be provided, containing sibling hashes on the branch from the leaf to the root of the tree. Each pair of leaves and each pair of pre-images are assumed to be sorted.
OpenZeppelin EIP712: EIP 712 is a standard for hashing and signing of typed structured data. This contract implements the EIP 712 domain separator (_domainSeparatorV4) that is used as part of the encoding scheme, and the final step of the encoding to obtain the message digest that is then signed via ECDSA (_hashTypedDataV4). Protocols need to implement the type-specific encoding they need in their contracts using a combination of abi.encode and keccak256.
1. constructor(string name, string version): Initializes the domain separator and parameter caches. The meaning of name and version is specified in EIP 712: 1) name is the user readable name of the signing domain, i.e. the name of the DApp or the protocol 2) version: the current major version of the signing domain.
2. _domainSeparatorV4() → bytes32: Returns the domain separator for the current chain.
  1. _hashTypedDataV4(bytes32 structHash) → bytes32: Given an already hashed struct, this function returns the hash of the fully encoded EIP712 message for this domain. This hash can be used together with ECDSA.recover to obtain the signer of a message.
OpenZeppelin ERC165: In Solidity, it’s frequently helpful to know whether or not a contract supports an interface you’d like to use. ERC165 is a standard that helps do runtime interface detection using a lookup table. You can register interfaces using _registerInterface(bytes4) and supportsInterface(bytes4 interfaceId) returns a bool indicating if that interface is supported or not.
WETH: WETH stands for Wrapped Ether. For protocols that work with ERC-20 tokens but also need to handle Ether, WETH contracts allow converting Ether to its ERC-20 equivalent WETH (called wrapping) and vice-versa (called unwrapping). WETH can be created by sending ether to a WETH smart contract where the Ether is stored and in turn receiving the WETH ERC-20 token at a 1:1 ratio. This WETH can be sent back to the same smart contract to be “unwrapped” i.e. redeemed back for the original Ether at a 1:1 ratio. The most widely used WETH contract is which holds more than 7 million Ether for now.
Uniswap V2: Uniswap is an automated liquidity protocol powered by a constant product formula and implemented in a system of non-upgradeable smart contracts on the Ethereum blockchain. The automated market making algorithm used by Uniswap is xy=k, where x and y represent a token pair that allow one token to be exchanged for the other as long as the “constant product” formula is preserved i.e. trades must not change the product (k) of a pair’s reserve balances (x and y). Core concepts:*
1. Pools: Each Uniswap liquidity pool is a trading venue for a pair of ERC20 tokens. When a pool contract is created, its balances of each token are 0; in order for the pool to begin facilitating trades, someone must seed it with an initial deposit of each token. This first liquidity provider is the one who sets the initial price of the pool. They are incentivized to deposit an equal value of both tokens into the pool. Whenever liquidity is deposited into a pool, unique tokens known as liquidity tokens are minted and sent to the provider’s address. These tokens represent a given liquidity provider’s contribution to a pool.
2. Swaps: allows one to trade one ERC-20 token for another, where one token is withdrawn (purchased) and a proportional amount of the other deposited (sold), in order to maintain the constant xy=k*
3. Flash Swaps: allows one to withdraw up to the full reserves of any ERC20 token on Uniswap and execute arbitrary logic at no upfront cost, provided that by the end of the transaction they either: 1) pay for the withdrawn ERC20 tokens with the corresponding pair tokens 2) return the withdrawn ERC20 tokens along with a small fee
4. Oracles: enables developers to build highly decentralized and manipulation-resistant on-chain price oracles. A price oracle is any tool used to view price information about a given asset. Every pair measures (but does not store) the market price at the beginning of each block, before any trades take place i.e. price at the end of the previous block which is added to a single cumulative-price variable weighted by the amount of time this price existed. This variable can be used by external contracts to track accurate time-weighted average prices (TWAPs) across any time interval.
Uniswap V3:
1. Concentrated liquidity: giving individual LPs granular control over what price ranges their capital is allocated to. Individual positions are aggregated together into a single pool, forming one combined curve for users to trade against
2. Multiple fee tiers: allowing LPs to be appropriately compensated for taking on varying degrees of risk
3. V3 oracles are capable of providing time-weighted average prices (TWAPs) on demand for any period within the last ~9 days. This removes the need for integrators to checkpoint historical values.
Chainlink Oracles & Price Feeds: Chainlink Price Feeds provide aggregated data (via its AggregatorV3Interface contract interface) from various high quality data providers, fed on-chain by decentralized oracles on the Chainlink Network. To get price data into smart contracts for an asset that isn’t covered by an existing price feed, such as the price of a particular stock, one can customize Chainlink oracles to call any external API.