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Pool initialization

  • Calls to initializePool can only be done successfully once in the lifetime of a pool.

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Liquidity Invariants

  • Removing liquidity doesn’t impact the price.
  • Adding liquidity doesn’t impact the price.
  • Liquidity can only be added in the proportions dictated by the pool.
  • After the pool initialization , deposits of liquidity on an inactive position will revert.

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Fees and Revenue

  • Revenue accrued by the pool can only increase over time.
  • Calls to withdrawRevenue never lead to a decrease of liquidity.
  • Calls to collectProtocolFees can never lead to a decrease of liquidity.

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Authorization Invariants

  • Calls to enableSwaps by any address that is not the contract owner will revert.
  • Calls to setLPFee by any address that is not the contract owner will revert.
  • Calls to initializePool by any address that is not the contract owner will revert.
  • Calls to depositLiquidity on a position NFT by any address that is not the owner of that position NFT will revert.
  • Calls to withdrawPartialLiquidity or withdrawAllLiquidity by any address that is not the owner of the position NFT will revert.
  • Calls to depositLiquidity while the contract is paused will revert.
  • Calls to swap while the contract is paused will revert.

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Swap Invariants

  • A swap resulting in an amount out of Token X higher than the AMM’s current xMAx will revert.
  • After initialization of the AMM all swaps selling Token X to the pool will fail until the first swap selling Token Y to the pool takes place.
  • After a swap selling X to the AMM, the AMM’s tracked X value will decrease by the amount sold.
  • After a swap buying X from the AMM, the AMM’s tracked X value will increase by the amount bought.
  • After a swap selling Y to the AMM, the AMM’s tracked X value will increase by the amount out.
  • After a swap buying Y from the AMM, the AMM’s tracked X value will decrease by the amount out.
  • The price (f(x)) will never drop below the Minimum Price set during the AMM’s initialization.
  • The price (f(x)) will never go above the Maximum Price set during the AMM’s inialization.
  • The price (f(x)) at a position on the x axis xpx_{p} at a given time will never be lower in future Occasions where x happens to be xpx_{p} again.
  • The price (f(x)) can never decrease when x increases.