uniswap-v3.md

Uniswap V3

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
• Experience with Foundry
• Uniswap V2

Tools

• Foundry
• Python / Jupyter lab (optional)

Topics

Check out the videos on Cyfrin Updraft for each lesson.

Section 1 - Intro

Introduction to Uniswap V3, how is it different from Uniswap V2 and what is concentrated liquidity?

• Concentrated liquidity
• Difference between v2 and v3
• Graph - concentrated liquidity
• Graph - tick
• Graph - tick on constant product curve
• Graph - single position
• Graph - multi positions
• ETH/USDT liquiduity price graph example
• Repositories overview
  • Uniswap V3 core Solidity 0.8
  • Uniswap V3 periphery Solidity 0.8
  • Uniswap swap router contracts
• Contracts overview

Section 2 - Spot price (sqrt price, tick, sqrt x 96)

Math for spot price and values specific to how Uniswap V3 stores prices (slot0, sqrtPriceX96 and tick).

• slot0 (tick and sqrtPriceX96)
  • Code
  • Etherscan WETH/USDT
• Math - tick to price
• Python - code example
• Math - sqrtPriceX96 to price
• Python - code example
• Math - sqrtPriceX96 to tick
• Python - code example
• Exercise 1
• Solution 1

Section 3 - Math

How to derive the equations for concentrated liquidity.

• Math - equation for x and y from liquidity and price
• Math - curve of real reserves
• Math - how many token x and y between pa and pb?

Section 4 - Swap

Swap algorithm, math, code and exercises swapping tokens with the router contract.

• Swap algorithm
  • Single position
  • Multi position
    • Liquidity net intro
    • Math - liquidity net
    • Graph - liquidity net
• Swap math
  • Math - what is the price after +/- dx or dy
  • Math - swap fee
• Code walkthrough swap
• Contract call
  • Exact input single
  • Exact input
  • Exact output single
  • Exact output
• Code walkthrough SwapRouter02
  • Exact input
  • Exact output
• Exercise 1 - single pool exact input
• Solution 1 - single pool exact input
• Exercise 2 - multi pool exact input
• Solution 2 - multi pool exact input
• Exercise 3 - single pool exact output
• Solution 4 - single pool exact output
• Exercise 4 - multi pool exact output
• Solution 4 - multi pool exact output

Section 5 - Factory

Contract architecture of the factory contract.

• Contract call
• Code walkthrough
• Exercise 1 - get pool
• Solution 1 - get pool
• Exercise 2 - create pool
• Solution 2 - create pool

Section 6 - Liquidity

Math of how liquidity is calculated followed by code and exercises.

• Math - Liquidity
• Math - Liquidity delta
• Graph - Tick spacing
• Contract call
  • UniswapV3Pool
    • mint
      • Call trace
      • Code walkthrough
    • burn
      • Call trace
      • Code walkthrough
    • collect
      • Call trace
      • Code walkthrough
  • NonFungiblePositionManager
    • mint
      • Contract call
      • Code walkthrough
    • increaseLiquidity
      • Contract call
      • Code walkthrough
    • decreaseLiquidity
      • Contract call
      • Code walkthrough
• Mint
  • Exercise 1
  • Solution 1
• Increase liquidity
  • Exercise 1
  • Solution 1
• Decrease liquidity
  • Exercise 1
  • Solution 1
• Collect fee and remove liquidity
  • Exercise 1
  • Solution 1

Section 6 - Tick bitmap

Algorithm for how the next liquidity position is efficiently searched.

• Tick bitmap
• Next tick algorithm

Section 7 - Fee algorithm

How fee is tracked internally and calculated for all liquidity providers.

• Math - Fee equation
• Fee growth
• Graph - fee growth
• Fee growth inside
• Graph - fee growth inside
• Fee growth outside
• Fee growth below
• Fee growth above
• Position fee
• Code walkthrough
  • Tick.update
  • Tick.cross
  • Tick.getFeeGrowthInside
  • Position.update

Section 8 - Flash

How to get flash loans from Uniswap V3 pools

• Code walkthrough
• Exercise 1
• Solution 1

Section 9 - TWAP price oracle

How to calculate a time-weighted average pricing of tokens using Uniswap V3

• Math - TWAP
• Math - TWAP of token x and y
• Python - simulation
• Code walkthrough
  • observe
  • transform
  • consult
  • getQuoteAtTick
• Exercise 1
• Solution 1

Section 10 - Footnotes

• JIT liquidity
• Graph - constant product AMM liquidity and price impact

Resources

• Uniswap
• Whitepaper
• App
• Uniswap V3 Core
• Uniswap V3 Core Solidity 0.8
• Uniswap V3 Periphery
• Uniswap V3 Periphery Solidity 0.8
• Uniswap V3 Swap Router
• Uniswap V3 Docs
• Uniswap V3 Analytics
• A Primer on Uniswap v3 Math
• Uniswap V3 book