DiamondSwap Tick Library

The DiamondSwap Tick Library provides utility functions for managing ticks within the DiamondSwap protocol. Ticks represent specific price levels in the pool, and the Tick Library is crucial for handling liquidity, fee calculations, and price adjustments based on tick movements. Below is a detailed breakdown of the functions within the DiamondSwap Tick Library.

Functions

getFeeGrowthInside(int24 tickLower, int24 tickUpper, int24 tickCurrent, uint256 feeGrowthGlobal0X128, uint256 feeGrowthGlobal1X128, uint256 feeGrowthOutside0X128Lower, uint256 feeGrowthOutside1X128Lower, uint256 feeGrowthOutside0X128Upper, uint256 feeGrowthOutside1X128Upper) → (uint256 feeGrowthInside0X128, uint256 feeGrowthInside1X128)

This function calculates the fee growth within a specific tick range. It takes into account the global fee growth and the fee growth outside the specified tick range to determine the fee growth inside the range.

• tickLower: The lower bound of the tick range.
• tickUpper: The upper bound of the tick range.
• tickCurrent: The current tick of the pool.
• feeGrowthGlobal0X128: The global fee growth for token0, represented as a Q128.128 fixed-point number.
• feeGrowthGlobal1X128: The global fee growth for token1, represented as a Q128.128 fixed-point number.
• feeGrowthOutside0X128Lower: The fee growth outside the lower tick for token0.
• feeGrowthOutside1X128Lower: The fee growth outside the lower tick for token1.
• feeGrowthOutside0X128Upper: The fee growth outside the upper tick for token0.
• feeGrowthOutside1X128Upper: The fee growth outside the upper tick for token1.
• Returns: A tuple containing:
  • feeGrowthInside0X128: The fee growth inside the tick range for token0.
  • feeGrowthInside1X128: The fee growth inside the tick range for token1.

This function is essential for calculating the fees earned by liquidity providers within a specific price range, ensuring that the correct fees are distributed based on tick positions.

cross(int24 tick, uint256 feeGrowthGlobal0X128, uint256 feeGrowthGlobal1X128) → (int128 liquidityNet, uint256 feeGrowthOutside0X128, uint256 feeGrowthOutside1X128)

This function handles the crossing of a tick, updating the liquidity net and fee growth outside the tick. When the price crosses a tick, the liquidity and fee growth must be adjusted accordingly.

• tick: The tick that is being crossed.
• feeGrowthGlobal0X128: The global fee growth for token0, represented as a Q128.128 fixed-point number.
• feeGrowthGlobal1X128: The global fee growth for token1, represented as a Q128.128 fixed-point number.
• Returns: A tuple containing:
  • liquidityNet: The net change in liquidity as a result of the tick crossing.
  • feeGrowthOutside0X128: The fee growth outside the tick for token0.
  • feeGrowthOutside1X128: The fee growth outside the tick for token1.

This function is critical for maintaining accurate liquidity and fee calculations as the price moves across ticks, ensuring that liquidity providers are properly credited or debited when their positions are crossed by the market.

update(int24 tick, int128 liquidityDelta, uint256 feeGrowthOutside0X128, uint256 feeGrowthOutside1X128, bool upper) → (bool flipped)

This function updates the tick's liquidity and fee growth, and it tracks whether the tick has flipped (i.e., whether it has changed from being initialized to uninitialized or vice versa).

• tick: The tick being updated.
• liquidityDelta: The change in liquidity at the tick, which can be positive (adding liquidity) or negative (removing liquidity).
• feeGrowthOutside0X128: The fee growth outside the tick for token0.
• feeGrowthOutside1X128: The fee growth outside the tick for token1.
• upper: A boolean indicating whether the update is for the upper tick of a position.
• Returns: A boolean indicating whether the tick has flipped.

This function is essential for tracking changes in liquidity and ensuring that ticks are correctly updated as liquidity is added or removed from the pool.

Use Cases

The DiamondSwap Tick Library is particularly valuable in scenarios that involve precise tick management, including:

• Fee Calculation: The getFeeGrowthInside function allows liquidity providers to calculate the fees earned within specific tick ranges, ensuring accurate fee distribution.
• Tick Crossings: The cross function ensures that liquidity and fee growth are updated correctly when the price crosses a tick, maintaining the integrity of the pool.
• Liquidity Management: The update function helps track liquidity changes at specific ticks, allowing for accurate liquidity adjustments and ensuring that ticks are properly initialized or uninitialized as needed.

Ticks and Price Ranges

In the DiamondSwap protocol, ticks are used to define specific price ranges within which liquidity is concentrated. By managing these ticks effectively, liquidity providers can optimize their positions and maximize their returns, while also ensuring that fees are distributed fairly based on the amount of liquidity provided at each tick.

Conclusion

The DiamondSwap Tick Library provides essential utilities for managing ticks within the DiamondSwap protocol. By using functions like getFeeGrowthInside, cross, and update, developers and liquidity providers can accurately manage liquidity, calculate fees, and track tick crossings, ensuring that the pool operates smoothly and efficiently. Whether you're building decentralized finance (DeFi) applications, managing liquidity, or implementing trading strategies, this library is a critical tool for working with ticks in the DiamondSwap ecosystem.