BAL Hookathon - DynamicFeeHook #101
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@luizpf29 is attempting to deploy a commit to the Matt Pereira's projects Team on Vercel. A member of the Team first needs to authorize it. |
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Thanks for your submission @luizpf29, great job!
This is a pretty cool idea. I've done a first pass (no need to address the comments; it's just for our internal review process).
I would have liked to see a test end to end, with the hook plugged in to a pool, trigger a few swaps, collect fees, and seeing what happens with the lending markets. But I also understand it's a fair amount of work, and you've already done quite a bit to get here.
We're going through the review process of all the submissions; it'll take a little longer. Thanks again for the submission and for your patience!
| uint256 calculatedSwapFeePercentage = deductibleHookFeePercentage + staticSwapFeePercentage; | ||
| // Charge the static or calculated fee, whichever is greater. |
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This should always be the case, given that calculatedSwapFeePercentage = deductibleHookFeePercentage + staticSwapFeePercentage and everything is unsigned.
| // Calculate current liquidity (sum of all token balances in the pool) | ||
| uint256 totalLiquidity = 0; | ||
| for (uint256 i = 0; i < poolBalances.length; i++) { | ||
| totalLiquidity += poolBalances[i]; | ||
| } | ||
| newLiquidity = totalLiquidity; |
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I think this makes sense if the pool is linear, but otherwise I think what you're looking for is the invariant.
The total liquidity doesn't necessarily reflect the "value" in the pool. E.g. in a 80/20 pool with 10 tokens A (80% weight) and 10000 tokens B (20% weight) means that those 10 tokens A make up 80% of the value of the pool (in other words, they are far more valuable per unit than the token B).
Computing the invariant would give you a better measure of the value stored in the pool.
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| function _calculateDynamicFee(uint256 _volatility, uint256 _liquidity) internal view returns (uint256) { | ||
| // Avoid division by zero | ||
| if (_liquidity == 0) { |
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I think you can just revert here; shouldn't happen anyways if you use the invariant.
| ) public override returns (bool success, uint256[] memory hookAdjustedAmountsInRaw) { | ||
| if (poolInfo[_pool].feeToken == address(0)) return (false, amountsInRaw); | ||
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| address userAddress = IRouterCommon(router).getSender(); |
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This is fine, but it's pending a step.
Anyone can write their own router, and they might return wrong senders. So the hook should have a list of trusted routers, and only if you trust the router you can proceed to call getSender.
| emit InvestPoolAdded(_pool, _asset); | ||
| } | ||
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| function setEarlyUnlock(bool _allowedEarlyUnlock) external onlyOwner { |
The Dynamic Fee Hook contract is a smart extension to the Balancer protocol, created with the purpose of dynamically adjusting swap fees based on market conditions, specifically volatility and liquidity levels. This contract not only helps to stabilize the pools but also maximizes the rewards for those who provide liquidity. It brings benefits to both liquidity providers and token holders.