Auto-Compounding Yield Optimizer Solidity, JavaScript
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Okay, let's craft an example of a simplified auto-compounding yield optimizer using Solidity and JavaScript. This will be a conceptual demonstration, and real-world implementations are significantly more complex (involving things like gas optimization, reentrancy guards, slippage control, etc.).
**Solidity (Smart Contract - `YieldOptimizer.sol`)**
```solidity
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;
import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
import "@openzeppelin/contracts/utils/math/SafeMath.sol";
contract YieldOptimizer {
using SafeMath for uint256;
IERC20 public stakingToken; // The ERC20 token being staked (e.g., LP token)
address public rewardPool; // Address of the staking/reward contract
IERC20 public rewardToken; // The ERC20 token being earned as reward
address public owner; // Owner of the contract
uint256 public lastHarvestTimestamp; // Timestamp of last harvest
uint256 public harvestInterval = 7 days; // Time between harvests
event Deposited(address indexed user, uint256 amount);
event Withdrawn(address indexed user, uint256 amount);
event Harvested(uint256 rewardAmount);
modifier onlyOwner() {
require(msg.sender == owner, "Only owner can call this function");
_;
}
constructor(
address _stakingToken,
address _rewardPool,
address _rewardToken
) {
stakingToken = IERC20(_stakingToken);
rewardPool = _rewardPool;
rewardToken = IERC20(_rewardToken);
owner = msg.sender;
}
function deposit(uint256 _amount) public {
require(_amount > 0, "Amount must be greater than zero");
// Transfer staking tokens from the user to this contract
stakingToken.transferFrom(msg.sender, address(this), _amount);
// Deposit the tokens into the reward pool (assuming a deposit function exists)
// NOTE: This assumes the rewardPool contract has a 'deposit' function
// and requires approval to be given to this contract. This is a simplified example.
(bool success,) = rewardPool.call(abi.encodeWithSignature("deposit(uint256)", _amount));
require(success, "Deposit to reward pool failed");
emit Deposited(msg.sender, _amount);
}
function withdraw(uint256 _amount) public {
require(_amount > 0, "Amount must be greater than zero");
// Withdraw tokens from the reward pool (assuming a withdraw function exists)
// NOTE: This assumes the rewardPool contract has a 'withdraw' function
// and requires approval to be given to this contract.
(bool success,) = rewardPool.call(abi.encodeWithSignature("withdraw(uint256)", _amount));
require(success, "Withdraw from reward pool failed");
// Transfer staking tokens from this contract to the user
stakingToken.transfer(msg.sender, _amount);
emit Withdrawn(msg.sender, _amount);
}
function harvest() public {
require(block.timestamp >= lastHarvestTimestamp + harvestInterval, "Harvest interval not reached");
// Call the 'harvest' function on the reward pool (assuming it exists)
// This will trigger the reward token to be sent to this contract.
(bool success,) = rewardPool.call(abi.encodeWithSignature("harvest()"));
require(success, "Harvest on reward pool failed");
uint256 rewardAmount = rewardToken.balanceOf(address(this));
// Reinvest the reward tokens back into the staking pool.
// Assuming the reward token can be deposited into the staking pool
rewardToken.approve(rewardPool, rewardAmount); // Approve the reward pool to spend the rewards
(bool success2,) = rewardPool.call(abi.encodeWithSignature("deposit(uint256)", rewardAmount));
require(success2, "Reinvesting rewards failed");
lastHarvestTimestamp = block.timestamp;
emit Harvested(rewardAmount);
}
function setHarvestInterval(uint256 _interval) public onlyOwner {
harvestInterval = _interval;
}
//Emergency withdraw function
function emergencyWithdraw() public onlyOwner {
uint256 balance = stakingToken.balanceOf(address(this));
stakingToken.transfer(msg.sender, balance);
}
function emergencyWithdrawReward() public onlyOwner {
uint256 balance = rewardToken.balanceOf(address(this));
rewardToken.transfer(msg.sender, balance);
}
}
```
**Explanation (Solidity):**
1. **Imports:** We use OpenZeppelin's ERC20 interface (`IERC20`) for interacting with ERC20 tokens and `SafeMath` for safe arithmetic operations. Always use safe math in Solidity to prevent overflows/underflows.
2. **State Variables:**
* `stakingToken`: The ERC20 token being staked in the reward pool.
* `rewardPool`: The address of the external staking/reward contract that pays out yield. This is where the actual staking logic resides.
* `rewardToken`: The ERC20 token earned as yield.
* `owner`: The address that can manage the contract (e.g., change the harvest interval).
* `lastHarvestTimestamp`: The last time the `harvest` function was successfully called.
* `harvestInterval`: The minimum time (in seconds) that must pass between harvests.
3. **Events:** `Deposited`, `Withdrawn`, and `Harvested` are events emitted to log contract activity. This is important for off-chain monitoring.
4. **`constructor`:** Initializes the contract with the addresses of the staking token, reward pool, and reward token.
5. **`deposit`:**
* Transfers `_amount` of `stakingToken` from the user to the `YieldOptimizer` contract. Requires the user to have already approved the contract to spend their tokens using `stakingToken.approve(address(this), amount)`.
* Calls the `deposit` function on the `rewardPool` contract. This assumes that the `rewardPool` has a `deposit` function that accepts the staked tokens.
* It uses `rewardPool.call` to interact with the external `rewardPool` contract. This is a lower-level way to interact and can handle contracts that don't strictly adhere to interfaces. It's important to handle the success/failure of the `call`.
6. **`withdraw`:**
* Calls the `withdraw` function on the `rewardPool` contract. This assumes the `rewardPool` has a withdraw function to withdraw staked tokens.
* Transfers `_amount` of `stakingToken` from the `YieldOptimizer` back to the user.
7. **`harvest`:**
* Checks if the `harvestInterval` has passed since the `lastHarvestTimestamp`.
* Calls the `harvest()` function on the `rewardPool` contract. This will typically trigger the reward token to be transferred to the `YieldOptimizer` contract.
* Gets the balance of the reward token held by the contract after the reward claim.
* Approves the `rewardPool` contract to spend the reward tokens held by the `YieldOptimizer`.
* Deposits the reward tokens back into the `rewardPool` contract to compound the yield.
* Updates `lastHarvestTimestamp`.
8. **`setHarvestInterval`:** Allows the owner to adjust the `harvestInterval`.
9. **`emergencyWithdraw`, `emergencyWithdrawReward`:** Allows the owner to withdraw staking token and reward token in case of unforeseen circumstances.
**JavaScript (Web3.js Interaction - `app.js`)**
```javascript
const Web3 = require('web3');
const yieldOptimizerAbi = require('./YieldOptimizer.json'); // Assuming you saved the ABI
const erc20Abi = require('./ERC20.json'); // ABI for ERC20 standard
// Configuration
const providerUrl = 'http://localhost:8545'; // Replace with your Ethereum node URL
const yieldOptimizerAddress = '0x...'; // Replace with your deployed contract address
const stakingTokenAddress = '0x...'; // Replace with your staking token address
const rewardTokenAddress = '0x...'; // Replace with your reward token address
const userAccount = '0x...'; // Replace with your user's account address
// Instantiate Web3
const web3 = new Web3(providerUrl);
// Instantiate Contracts
const yieldOptimizer = new web3.eth.Contract(yieldOptimizerAbi, yieldOptimizerAddress);
const stakingToken = new web3.eth.Contract(erc20Abi, stakingTokenAddress);
const rewardToken = new web3.eth.Contract(erc20Abi, rewardTokenAddress);
async function depositTokens(amount) {
try {
// 1. Approve the YieldOptimizer contract to spend the user's staking tokens
const approveAmount = web3.utils.toWei(amount, 'ether'); // Convert to Wei
const approveTx = await stakingToken.methods.approve(yieldOptimizerAddress, approveAmount)
.send({ from: userAccount, gas: 200000 });
console.log('Approval transaction hash:', approveTx.transactionHash);
// 2. Deposit the tokens using the YieldOptimizer contract
const depositAmount = web3.utils.toWei(amount, 'ether'); // Convert to Wei
const depositTx = await yieldOptimizer.methods.deposit(depositAmount)
.send({ from: userAccount, gas: 200000 });
console.log('Deposit transaction hash:', depositTx.transactionHash);
} catch (error) {
console.error('Error depositing tokens:', error);
}
}
async function withdrawTokens(amount) {
try {
const withdrawAmount = web3.utils.toWei(amount, 'ether');
const withdrawTx = await yieldOptimizer.methods.withdraw(withdrawAmount)
.send({ from: userAccount, gas: 200000 });
console.log('Withdrawal transaction hash:', withdrawTx.transactionHash);
} catch (error) {
console.error('Error withdrawing tokens:', error);
}
}
async function harvestRewards() {
try {
const harvestTx = await yieldOptimizer.methods.harvest()
.send({ from: userAccount, gas: 200000 });
console.log('Harvest transaction hash:', harvestTx.transactionHash);
} catch (error) {
console.error('Error harvesting rewards:', error);
}
}
async function getStakingTokenBalance() {
try {
const balanceWei = await stakingToken.methods.balanceOf(userAccount).call();
const balance = web3.utils.fromWei(balanceWei, 'ether');
console.log("Staking Token Balance: " + balance);
} catch (error) {
console.error("Error fetching staking token balance", error);
}
}
async function getRewardTokenBalance() {
try {
const balanceWei = await rewardToken.methods.balanceOf(userAccount).call();
const balance = web3.utils.fromWei(balanceWei, 'ether');
console.log("Reward Token Balance: " + balance);
} catch (error) {
console.error("Error fetching reward token balance", error);
}
}
// Example usage:
async function main() {
await getStakingTokenBalance();
await getRewardTokenBalance();
//await depositTokens('1'); // Deposit 1 staking token
//await harvestRewards();
//await withdrawTokens('0.5'); // Withdraw 0.5 staking tokens
await getStakingTokenBalance();
await getRewardTokenBalance();
}
main();
```
**Explanation (JavaScript):**
1. **Dependencies:** Requires `web3` (a library for interacting with Ethereum), and ABI (Application Binary Interface) files of both the `YieldOptimizer` contract and ERC20 Token contract.
2. **Configuration:** Set the `providerUrl`, `yieldOptimizerAddress`, `stakingTokenAddress`, `rewardTokenAddress`, and `userAccount`. These need to be the actual values for your deployment.
3. **Web3 Instance:** Creates a `web3` instance connected to your Ethereum node.
4. **Contract Instances:** Instantiates `web3.eth.Contract` objects for interacting with the deployed `YieldOptimizer`, `stakingToken`, and `rewardToken` contracts. These use the ABI to know the functions and data structures of the contracts.
5. **`depositTokens` Function:**
* First, it **approves** the `YieldOptimizer` contract to spend the user's `stakingToken`. This is a necessary step for ERC20 token transfers. You *must* call `approve` before calling `deposit`.
* Then, it calls the `deposit` function on the `YieldOptimizer` contract.
* Uses `web3.utils.toWei` to convert the deposit amount from ether to wei (the smallest unit of ether).
* `send({ from: userAccount, gas: 200000 })` sends the transaction from the specified user account and provides a gas limit.
6. **`withdrawTokens` Function:** Calls the `withdraw` function on the `YieldOptimizer` contract to withdraw tokens. Converts the amount to wei.
7. **`harvestRewards` Function:** Calls the `harvest` function on the `YieldOptimizer` contract to trigger the reward harvesting and reinvestment process.
8. **`getStakingTokenBalance`, `getRewardTokenBalance`** Functions to check token balance.
9. **`main` Function:** Shows example calls.
**How to Use:**
1. **Install Dependencies:**
```bash
npm install web3 @openzeppelin/contracts
```
2. **Compile Solidity:** Compile `YieldOptimizer.sol` using a Solidity compiler (e.g., Remix, Hardhat, Truffle). This will generate the ABI (Application Binary Interface) and bytecode.
```bash
npm install -g truffle
truffle compile
```
3. **Deploy Solidity:** Deploy the compiled contract to a test network (e.g., Ganache, Hardhat Network, Goerli).
4. **Update Configuration:** Replace the placeholder addresses and the `providerUrl` in `app.js` with your actual deployed contract addresses and the address of your Ethereum node.
5. **Create ABI files:** Copy the ABI (Application Binary Interface) of `YieldOptimizer`, `ERC20`. and save them as `YieldOptimizer.json`, `ERC20.json` in the same directory as your JavaScript file.
6. **Run JavaScript:** Run the `app.js` script using Node.js:
```bash
node app.js
```
**Important Considerations:**
* **Security:** This is a *simplified* example. Real-world DeFi contracts require rigorous auditing and security best practices (reentrancy guards, access control, input validation, etc.).
* **Gas Optimization:** DeFi transactions cost gas. Optimize the Solidity code to minimize gas consumption.
* **Error Handling:** Add more robust error handling in both the Solidity and JavaScript code.
* **External Dependencies:** Carefully vet any external contracts or libraries you use.
* **Complex Strategies:** Actual yield optimizers often involve sophisticated strategies like swapping between different pools, using leverage, etc. This example only shows the basic auto-compounding concept.
* **Testing:** Write thorough unit tests for the Solidity contract to ensure it behaves as expected.
* **Approval:** Before calling `deposit`, the user must `approve` the `YieldOptimizer` contract to spend their `stakingToken`.
* **ABI:** The ABI is crucial for JavaScript to understand how to interact with the deployed Solidity contract.
* **Ganache/Hardhat:** Use a local Ethereum development environment like Ganache or Hardhat for testing. This allows you to quickly deploy and interact with the contract without spending real ETH.
* **External rewardPool:** The example relies on the rewardPool having functions called `deposit` and `withdraw` and `harvest` with specific signatures.
This provides a basic, conceptual understanding of an auto-compounding yield optimizer. Real implementations would be significantly more complex and require in-depth knowledge of smart contract development and DeFi protocols. Remember to do thorough research and testing before deploying any code to a live network.
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