Osmosis CL LPer library

The Valence Osmosis CL LPer library library allows to create concentrated liquidity positions on Osmosis from an input account, and deposit the LP tokens into an output account.

High-level flow

---
title: Osmosis CL Liquidity Provider
---
graph LR
  IA((Input
      Account))
  OA((Output
		  Account))
  P[Processor]
  S[Osmosis CL
      Liquidity
      Provider]
  AP[Osmosis CL
     Pool]
  P -- 1/Provide Liquidity --> S
  S -- 2/Query balances --> IA
  S -- 3/Configure target
    range --> S
  S -- 4/Do Provide Liquidity --> IA
  IA -- 5/Provide Liquidity
				  [Tokens] --> AP
  AP -- 5'/Transfer LP Tokens --> OA

Concentrated Liquidity Position creation

Because of the way CL positions are created, there are two ways to achieve it:

Default

Default position creation centers around the idea of creating a position with respect to the currently active tick of the pool.

This method expects a single parameter, bucket_amount, which describes how many buckets of the pool should be taken into account to both sides of the price curve.

Consider a situation where the current tick is 125, and the configured tick spacing is 10.

If this method is called with bucket_amount set to 5, the following logic will be performed:

  • find the current bucket range, which is 120 to 130
  • extend the current bucket ranges by 5 buckets to both sides, meaning that the range "to the left" will be extended by 5 * 10 = 50, and the range "to the right" will be extended by 5 * 10 = 50, resulting in the covered range from 120 - 50 = 70 to 130 + 50 = 180, giving the position tick range of (70, 180).

Custom

Custom position creation allows for more fine-grained control over the way the position is created.

This approach expects users to specify the following parameters:

  • tick_range, which describes the price range to be covered
  • token_min_amount_0 and token_min_amount_1 which are optional parameters that describe the minimum amount of tokens that should be provided to the pool.

With this flexibility a wide variety of positions can be created, such as those that are entirely single-sided.

Functions

FunctionParametersDescription
ProvideLiquidityDefaultbucket_amount: Uint64Create a position on the pre-configured Osmosis Pool from the input account, following the Default approach described above, and deposit the LP tokens into the output account.
ProvideLiquidityCustomtick_range: TickRange
token_min_amount_0: Option<Uint128>
token_min_amount_1: Option<Uint128>		Create a position on the pre-configured Osmosis Pool from the input account, following the Custom approach described above, and deposit the LP tokens into the output account.

Configuration

The library is configured on instantiation via the LibraryConfig type.

#![allow(unused)]
fn main() {
pub struct LibraryConfig {
    // Account from which the funds are LPed
    pub input_addr: LibraryAccountType,
    // Account to which the LP position is forwarded
    pub output_addr: LibraryAccountType,
    // LP configuration
    pub lp_config: LiquidityProviderConfig,
}

pub struct LiquidityProviderConfig {
    // ID of the Osmosis CL pool
    pub pool_id: Uint64,
    // Pool asset 1 
    pub pool_asset_1: String,
    // Pool asset 2
    pub pool_asset_2: String,
    // Pool global price range
    pub global_tick_range: TickRange,
}
}