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Guide_for_SNS_treasury.md

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A guide for SNS treasury to add liquidity to ICDex

ICDex-Trader: A decentralized trader for SNS Treasury

SNS Treasury funds participate in ICDex trading or provide liquidity in a non-custodial manner, maintaining decentralization. Agent moral hazard can be effectively mitigated by transferring SNS Treasury funds to Trader Canister and assigning a non-drawing operator to manage them.

1. Deploy a trader canister

dfx canister --network ic create Trader --controller __your principal__
dfx build --network ic Trader
dfx canister --network ic install Trader --argument '(principal "__trading_pair_canister-id__", opt principal "__DAO_governance_canister-id__")'

Or (Your account needs to have a sufficient ICL balance, default TRADER_CREATION_FEE is 5 ICL):

dfx canister --network ic call hhaaz-2aaaa-aaaaq-aacla-cai icrc2_approve '(record{ spender = record{owner = principal "ibnyg-oiaaa-aaaar-qaa3q-cai"; subaccount = null }; amount = 10_000_000_000: nat })'
dfx canister --network ic call ibnyg-oiaaa-aaaar-qaa3q-cai create '("Trader-1", principal "__trading_pair_canister-id__", opt principal "__DAO_governance_canister-id__", null)'

Notes:

  • Remember to monitor Trader cansiter's cycles balance and top it up in a timely manner.

2. (Optional) Adding an operator

dfx canister --network ic call __trader_canister_id__ setOperator '(principal "__operator_principal__")'

Query operators

dfx canister --network ic call __trader_canister_id__ getOperators

3. Register Trader as a dApp canister through SNS proposal.

  • Add SNS Root canister-id as one of Trader's controllers.
dfx canister --network ic call aaaaa-aa update_settings '(record{ canister_id = principal "__trader_canister_id__"; settings = record{ controllers = opt vec{principal "__original_owner__"; principal "__SNS_Root_canister-id__"} } })'
  • Make a #RegisterDappCanisters proposal to add Trader to the SNS DAO.

4. SNS Treasury funds transferred to the Trader canister.

  • Make a #TransferSnsTreasuryFunds proposal to transfer small amount of funds (from_treasury = 1-ICP; 2-SNSLedger) from the treasury into trader_canister_id and try to make another proposal to call Trade.withdraw() in step 6 to check if the token can be successfully transferred back to the treasury.
  • Make a new #TransferSnsTreasuryFunds proposal to transfer funds used to provide liquidity from the treasury into trader_canister_id.

5. The operator adds liquidity or creates a buy wall.

If no operators are set up, the SNS proposal can call them directly.

Notes:

  • __trading_pair_canister-id__ is SNS token trading pair on ICDex.
  • __trader_canister_id__ is trader canister-id you deployed.
  • The unit of amount is the smallest_unit of token.
  • An additional 2x token fee must be retained in the balance of Trader, and the entire amount cannot be used for placing orders.
  • When the operator calls order() or buyWall(), he is using funds that have been kept in the Pair canister by the Trader canister, so depositToPair() has to be called first, followed by order() or buyWall(). If you want to get the funds back into the Trader canister, you need to execute withdrawFromPair().
  • When the operator calls addLiquidity(), the funds in Trader canister are used. If there are insufficient funds in the Trader canister, it is necessary to execute withdrawFromPair() and withdraw the funds kept in the Pair canister to the Trader canister.

Operations:

  • Adds liquidity
    Notes:
  • First create a public OAMM pool via https://iclight.io/icdex/pools and make it vip-maker, then you can get public OAMM pool canister-id.
  • The OAMM pool must be initialised before this operation can be performed successfully. The initialisation is done by the creator of the OAMM pool adding the first liquidity.
dfx canister --network ic call __trader_canister_id__ addLiquidity '(principal "__public_OAMM_pool_canister-id__", __amount-of-Token0__ : nat, __amount-of-Token1__ : nat)'
  • Removes liquidity
dfx canister --network ic call __trader_canister_id__ removeLiquidity '(principal "__trading_pair_canister-id__", null)'
  • Sends funds to Pair canister (If you are about to call order() or buyWall()).
dfx canister --network ic call __trader_canister_id__ depositToPair '(principal "__trading_pair_canister-id__", __token0_amount__, __token1_amount__)'
  • Creates a buy wall
    Notes: price : float, is the human-readable price, i.e. the price displayed on the UI of the trading pair;
    quantity : nat, is the AMOUNT (its unit is the smallest_unit) of the SNS token for the order.
dfx canister --network ic call __trader_canister_id__ buyWall '(principal "__trading_pair_canister-id__", vec{ __Example: record{price = 2.1 : float; quantity = 1000_000_000 : nat}; record{price = 3.5 : float; quantity = 500_000_000 : nat}__ })'
  • Creates a #LMT order
    Notes: pair : principal, Canister-id of the pair.
    side : variant, Side of the order, its value is #Buy or #Sell.
    price : float, is the human-readable price, i.e. the price displayed on the UI of the trading pair;
    quantity : nat, is the AMOUNT (its unit is the smallest_unit) of the SNS token for the order. It MUST be an integer multiple of UNIT_SIZE. Note: An additional 2x token fee must be retained in the balance.
dfx canister --network ic call __trader_canister_id__ order '(principal "__trading_pair_canister-id__", variant{ __Buy/Sell__ }, 2.1 : float, 1000_000_000 : nat)'
  • Cancel all orders
dfx canister --network ic call __trader_canister_id__ cancelAll '(principal "__trading_pair_canister-id__")'
  • Withdraws funds from Pair canister to Trader canister
dfx canister --network ic call __trader_canister_id__ withdrawFromPair '(principal "__trading_pair_canister-id__")'

6. Sends funds from Trader canister back to SNS Treasury through SNS proposal.

Make an #AddGenericNervousSystemFunction proposal to add Trader's withdraw() method. (Just add it once).

Make an #ExecuteGenericNervousSystemFunction proposal to execute Trader's withdraw() method.

withdraw : shared ( token: Principal, to: Account, value: Nat ) -> async ();

Notes:

  • The treasury account of ICP is { owner = principal "__SNS_Governance_canister_id__"; subaccount = null }.
  • The treasury account of SNS ledger is { owner = principal "__SNS_Governance_canister_id__"; subaccount = opt blob "__Token_treasury__" }, The __Token_treasury__ should be gotten from earlier SNS mint records.
  • Only ICP and SNS ledger tokens (1-ICP; 2-SNSLedger) can be sent to the SNS Treasury, other tokens sent to the Treasury may not be withdrawn and lost.