Trader Crow: Liquidity Book

Liquidity Book is an innovative, highly-capital efficient Automated Market Maker (AMM) protocol designed to support high volume trading with lower liquidity requirements. It introduces unique features that enhance the trading experience and optimize earnings for Liquidity Providers.

Key Features

• Zero Slippage: Liquidity Book allows traders to swap tokens with zero slippage within designated bins, ensuring optimal trading conditions.
• Surge Pricing: During periods of high market volatility, Liquidity Providers earn additional dynamic fees, increasing their potential earnings.
• High Capital Efficiency: Unlike many existing AMMs, Liquidity Book supports high volume trading with significantly lower liquidity requirements.
• Flexible Liquidity: Liquidity Providers can strategically build flexible liquidity distributions according to their specific trading strategies.

Comparing Liquidity Book and Uniswap V3

While both Liquidity Book and Uniswap V3 operate as concentrated liquidity AMMs, there are a few key differences:

Feature	Liquidity Book	Uniswap V3
Price Ranges	Discretized into bins	Utilizes ticks
Invariant used	Constant sum	Constant product
Bin Steps/Tick Sizes	Can be more than 1 basis point	Generally 1 basis point
Liquidity Aggregation	Vertically aggregated	Horizontally aggregated
Fungibility of Liquidity Positions	Yes	No
Liquidity Distribution	Not restricted to uniform, can take any desired shape	Typically uniform across price range
Swap Fees	Fixed + variable pricing, allows higher fees during volatility	Fixed pricing
Zero Slippage	Yes	No
Surge Pricing	Yes	No
High Capital Efficiency	Yes	Variable
Flexible Liquidity Distributions	Yes	Limited

Project Structure

This repository contains the Liquidity Book contracts, as well as tests and deploy scripts.

• The LBPair is the contract that contains all the logic of the actual pair for swaps, adds, removals of liquidity and fee claiming. This contract should never be deployed directly, and the factory should always be used for that matter.

• The LBToken is the contract that is used to calculate the shares of a user. The LBToken is a new token standard that is similar to SNIP-1155.

• The LBFactory is the contract used to deploy the different pairs and acts as a registry for all the pairs already created. There are also privileged functions such as setting the parameters of the fees, the flashloan fee, setting the pair implementation, set if a pair should be ignored by the quoter and add new presets. Only the owner of the factory can create pairs.

• The LBRouter is the main contract that user will interact LbPair when swapping

• The LBQuoter is a contract that is used to return the best route of all those given. This should be used before a swap to get the best return on a swap.

Notice!

You'll need to grant allowances for testnet sSCRT and SILK to the LBPair contract:

address: secret1vdp8lm27h7d906fg0d7g59jnn32sdl7x2m8sea

code_hash: aff1a59f3886b7f0a2d20e8ac9ed3628fd11d4b7df2e6a69ebd7cb481b03c70f

Investors Pitch

Link

Development Description

Link

Misc Notes

• after each testnet contract deployment, the following variables need to be updated:
  • /app/src/lib/contracts.ts - update the Liquidity Book Contracts section
  • /app/src/lib/tokens.ts - update token X and Y

Developing

Once you've created a project and installed dependencies with npm install (or pnpm install or yarn), start a development server:

npm run dev

# or start the server and open the app in a new browser tab
npm run dev -- --open

Building

To create a production version of your app:

npm run build

You can preview the production build with npm run preview.