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An AMM (automated market maker) Sui Move module

Introduction

This Automated Market Maker (AMM) system is a decentralized exchange mechanism built on the Sui blockchain, leveraging the Move programming language. Designed to facilitate automated trading and liquidity provision, our AMM system employs a constant product formula x * y = k to ensure liquidity and enable seamless asset swaps within its ecosystem.

About the Project

The core of this AMM system lies in its ability to create and manage liquidity pools for pairs of assets. It introduces concepts like liquidity pool coins (LP coins) which represent an individual's stake in a pool. The creation of a pool requires an initial liquidity supply, adhering to the sqrt(amount_coin_a * amount_coin_b) - 1000 formula, ensuring a minimum liquidity threshold.

This project provides various functionalities including creating liquidity pools, adding or removing liquidity, and performing asset swaps through several methods like swap_exact_a_for_b or swap_a_for_exact_b, each catering to different trading strategies and ensuring efficient market operations.

Getting Started

Prerequisites

Ensure you have the following installed:

Installation and Configuration

  1. Clone the Repository

    git clone https://github.com/ksmit323/liquidity-pool-move
cd liquidity-pool-move

  2. Compile the Move Package

    sui move compile

  3. Deploy to Sui

    sui move publish

Running the AMM System

  • Creating a Liquidity Pool Utilize the create_liquidity_pool function with the initial asset amounts to establish a new liquidity pool.

  • Supplying Liquidity Call supply_liquidity with the desired asset amounts to add liquidity to an existing pool.

  • Removing Liquidity Use remove_liquidity and specify the LP coins you wish to redeem for underlying assets.

  • Swapping Assets Engage in trades using functions like swap_exact_a_for_b to exchange assets at current market rates.

Testing

To run the tests, use the following command:

sui move test

Acknowledgement

This is the Pool Party quest given by Overmind