curve-v1.md

Curve V1

How to use this

• Check prerequisites
• Install tools
• Watch videos on Cyfrin Updraft
• Do exercises under topics
• Ask questions on GitHub discussions

Prerequisites

• Advanced Solidity developer
• Experience with Foundry
• Knowledge of constant sum (x + y = K) and constant product (xy = K) AMM
• Python (optional)
• Basic understanding of DeFi (optional)
• Uniswap V2 and V3 (optional)

Tools

• Foundry
• Python / Jupyter lab (optional)

Topics

Check out the videos on Cyfrin Updraft for each lesson.

Section 1 - Intro

What you will learn

• What is Curve AMM
• How is it different from Uniswap v2 and v3?

• Course intro
• Lead instructor
• Best practices
• Setup repo for exercises
• How to execute exercises
• Curve intro
• Comparison with Uniswap v2 and v3

Section 2 - Math

What you will learn

• Math of Curve v1 AMM
• How Curve v1's equation calculates swap amount and liuidity

• Graph Curve V1 AMM
• Graph Curve V1 xy/(D/2)^2
• Math
• Newton's method
  • Curve v1 equations
  • Curve v1 Newton's method

Section 3 - Contract overview

What you will learn

• Curve v1 AMM contract overview
• Parameter A that controls the flatness of the curve of Curve v1
• Number D that quantifies liquidity of the pool

• Contract overview
• Graph How A affects D
• Code walkthrough A
  • Code walkthrough ramp_A
  • Code walkthrough stop_ramp_A
• Code walkthrough _xp
• Code walkthrough get_D
  • Python Compute equations for D
• Code walkthroughget_virtual_price
• Code walkthroughcalc_token_amount

Section 4 - Swap

What you will learn

• How swap function is implemented

• Contract calls
• Code walkthrough exchange
  • Code walkthrough get_y
    • Python Compute equations for y
• Code walkthrough get_dy
• Exercises
  • Exercise 1
  • Solution 1
  • Exercise 2
  • Solution 2

Section 5 - Add liquidity

What you will learn

• How the function to add liquidity is implemented
• Imbalance fee for adding liquidity in a way that changes the token ratios

• Contract calls
• Imbalance fee
• Code walkthrough add_liquidity
• Exercise
  • Exercise
  • Solution

Section 6 - Remove liquidity

What you will learn

• How the functions to remove liquidity are implemented

• Contract calls
• Code walkthrough remove_liquidity
• Graph calc_withdraw_one_coin
• Code walkthrough remove_liquidity_one_coin
  • Code walkthrough _calc_withdraw_one_coin
• Exercises
  • Exercise 1
  • Solution 1
  • Exercise 2
  • Solution 2

Resources

• Curve
• Docs
• Whitepaper
• Curve resources
• Curve magic
• Imbalance fee
• Curve V1 StableSwap3Pool code
• 3pool
• Newton's method