https://github.com/robertleifke/numo
Market maker for onchain FX
https://github.com/robertleifke/numo
ethereum forex hedging smart-contracts uniswap-v4
Last synced: 9 months ago
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Market maker for onchain FX
- Host: GitHub
- URL: https://github.com/robertleifke/numo
- Owner: robertleifke
- License: mit
- Created: 2024-09-04T18:07:24.000Z (over 1 year ago)
- Default Branch: main
- Last Pushed: 2025-03-14T17:06:19.000Z (10 months ago)
- Last Synced: 2025-03-14T18:26:00.705Z (10 months ago)
- Topics: ethereum, forex, hedging, smart-contracts, uniswap-v4
- Language: Solidity
- Homepage: https://numo.cash
- Size: 1.93 MB
- Stars: 3
- Watchers: 1
- Forks: 0
- Open Issues: 0
-
Metadata Files:
- Readme: README.md
- License: LICENSE
Awesome Lists containing this project
README
# Numo
> ⚠️ **WARNING:** This code has not yet been audited. Use at your own risk.
[](https://github.com/numotrade/numo/actions/workflows/fuzz-testing.yml)
[](https://www.npmjs.com/package/@numotrade/numo/v/latest)
## Overview
Numo is a dynamic, automated market maker that provides continuous liquidity to onchain FX markets. Numo's specialized curve can offer more efficient exchange of FX and market make a variety of derivative products such as futures, forwards, and exotic option instruments without oracles.
Try it out! Send money from one currency to another at the best rates possible and instantly with [numo.cash](numo.cash).
### Advantages
- ✅ Any FX pair
- 🌍 Globally accessible
- 🤝 Instant settlement
## Architecture
Numo is a Uniswap V4 hook that inherits OpenZeppelin's `BaseCustomCurve` contract from their `uniswap-hooks` library. Thus enabling Numo to interact with the V4 poolmanager for optimal routing and inherit much of their battle tested code without needing use the concentrated liquidity logic.
#### Log-Normal Market Maker
A log-normal curve is beter suited for FX over hyperbolic curves implemented by Uniswap as FX exchange rates exhbit log-normal behavior. Instead of overriding `beforeSwap` completey, Numo uses `_getUnspecifiedAmount` to implement the curve defined as:
$$ \varphi(x, y, L; \mu, \sigma) = \Phi^{-1} \left(\frac{x}{L} \right) + \Phi^{-1} \left(\frac{y}{\mu L} \right) + \sigma $$
where:
- $\Phi^{-1}$ is the **inverse** Gaussian cumulative distribution function (CDF).
- $L$ represents the total liquidity of the pool.
- $x$ and $y$ represent the reserves scaled by liquidity.
- $\mu$, the mean and $\sigma$, the width define the distribution of liquidity.
As liquidity $L$ increases, both reserves scale proportionally, maintaining a log-normal liquidity distribution.
#### Acknowledgements
The smart contract suite is inspired by Primitive's Log-Normal [DFMM](https://github.com/primitivefinance/dfmm) implementation and the [replicating market makers](https://arxiv.org/abs/2103.14769) paper that first showed the relationship between liquidity and the trading curve of an AMM.
## Setup
Requires forge to be installed already.
```
forge install
```
## Testing
```
forge test -vvv
```
## Coverage
```
forge coverage --report lcov
cmd + shift + p -> Coverage Gutters: Display Coverage
```
## Gas benchmarks
### View gas usage
```
forge snapshot --gas-report
```
### Compare gas usage
```
forge snapshot --diff
```
#### Update dependencies
```bash
git submodule update --init --recursive
```
## Deployments
| Network | Factory Address |
| -------- | ----------------------------------------------------- |
| Base | [0x82360b9a2076a09ea8abe2b3e11aed89de3a02d1](https://explorer.celo.org/mainnet/token/0x82360b9a2076a09ea8abe2b3e11aed89de3a02d1 ) |
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