Machinations

Connecting swap trigger and swap functions

Connect the swap trigger and swap functions with state and resource connections in the market maker diagram. Press play and make sure the swap trigger.

Connecting the Parts

We’re going to connect the swap trigger, the two swap functions and the liquidity pool until the whole model looks like this:

The finished model with every part connected: the swap trigger on top, the Swap A for B and Swap B for A functions in the middle, and Token A, Invariant K and Token B below, joined by state and resource connections.The finished model with every part connected: the swap trigger on top, the Swap A for B and Swap B for A functions in the middle, and Token A, Invariant K and Token B below, joined by state and resource connections.

Lets Connect the Swap Trigger to the Swap Functions

Step1: (left side)

Connect a state connection from the Buy B Sell A Pool to the Source of the Buy B Sell A Swap Function. Settings:

  • Type = Trigger
  • Formula = Trigger on gain

Direction of flow = From Pool to Source

NOTE: A State Connection of the Type Trigger is a trigger, which means every time a resource comes into the pool, it will trigger the source on the other end of the state connection

Step 2:

Connect a state connection from the Buy A Sell B Pool to the Source of the Buy A Sell B Swap Function. Settings:

  • Type = Trigger
  • Formula = Trigger on gain

Direction of flow = From Pool to Source

It should look like this

The swap trigger connected to the swap functions: Buy B Sell A and Buy A Sell B each have a Trigger on gain state connection to the Source of their swap function, Sell A and Sell B.The swap trigger connected to the swap functions: Buy B Sell A and Buy A Sell B each have a Trigger on gain state connection to the Source of their swap function, Sell A and Sell B.

Time to test it out! Press play and make sure the swap trigger, triggers the source of the swap function

Lets connect the Swap function Swap A for B = Buy B & Sell A

Step 1:

Connect the Pool from the swap to the Token A pool of the liquidity pool, with a RESOURCE connection.

Settings:

  • Type = All

Direction of Flow: from Pool in swap function to Token A Pool in the LP

The resource connection Deposit A, with the formula All, from the A In pool of the swap function to the Token A pool of the liquidity pool, beside the bI and K state connections.The resource connection Deposit A, with the formula All, from the A In pool of the swap function to the Token A pool of the liquidity pool, beside the bI and K state connections.

NOTE:  in machinations “all” means all of the resources will be sent to the node at the end of the resource connection

Step 2:

From The Liquidity Pool, connect the Token A pool, to the new TokenB Balance Register, using a state connection. Settings:

  • Formula = bI

Direction of Flow: From Token A Pool (LP) to Register (Swap Function)

NOTE: bI refers to balance in, we are referring to the token whose balance is coming in to the pool when the swap function is triggered

Step 3:

From the Liquidity Pool, connect the Invariant K Register to the New TokenB Balance Register with a state connector. Settings:

  • Formula = K

Direction of Flow: From Register (LP) to Register (Swap Function)

NOTE: You may notice that now, our New TokenB Balance Register has all of the variables it needs to solve its equation K/(aI + bI)

Step 4:

From the liquidity Pool, use a state connection to connect the Token B Pool to the Amount Out Token B Register. Settings:

  • Formula = bO

Direction of Flow: From TokenB Pool (LP) to Register (Swap Function)

NOTE: bO refers to balance out. It is referring to the token balance of the token that is leaving the liquidity pool (being bought)

Step 5:

From The Liquidity Pool, connect the Token A pool, to the Price BA Register, using a state connector. Settings:

  • Formula = TokenA

Direction of Flow: From Token A Pool (LP) to Register (Swap Function)

Step 6:

From The Liquidity Pool, connect the Token B pool, to the Price BA Register, using a state connection. Settings:

  • Formula = TokenB

Direction of Flow: From Token B Pool (LP) to Register (Swap Function)

NOTE: u now have all the variables you need for this register to complete its formula TokenB/TokenA

Step 7:

From The Liquidity Pool, connect the Token B pool, to the Token B Sink, using a RESOURCE connection. Settings:

  • Type = Number, value 0

Direction of Flow: From Token B Pool (LP) to Sink (Swap Function)

NOTE: We are moving resources from the liquidity pool to out of it, therefore we need a resource connection. The value is 0 because we are going to be overriding it with a formula in the next step

Step 8:

From the swap function, connect the Amount Out TokenB register to the RESOURCE connection that is flowing to the Token B Sink. Settings:

  • Type = Change value
  • Formula = Overwrite

Direction of Flow: From Amount Out Token B Register (Swap function) to Resource connection

The Token B pool paying out through the Drain B resource connection to the Token B Drain sink, with a state connection labelled Overwrite from Amount Out TokenB changing its amount.The Token B pool paying out through the Drain B resource connection to the Token B Drain sink, with a state connection labelled Overwrite from Amount Out TokenB changing its amount.

NOTE: Overwrite in a state connector means override. It will override the number in the resource connection with the value from the register it originates from.

Great Job! now everything should be connected for the swap function Buy B & Sell A, so lets test it out, press play and u should see this swap action working, if not, go back and see whats wrong. when it works perfectly, we can do the other side

Alright Lets connect the Swap function Swap B for A = Buy A & Sell B