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LinearLongShortPairFinancialProductLibrary

LinearLongShortPairFinancialProductLibrary#

Adds settlement logic to create linear LSPs. The contract will payout a scaled amount of collateral depending on where the settlement price lands within a price range between an upperBound and a lowerBound. If settlement price is within the price range then the expiryPercentLong is defined by (expiryPrice - lowerBound) / (upperBound - lowerBound). This number represent the amount of collateral from the collateralPerPair that will be sent to the long and short side. If the price is higher than the upperBound then expiryPercentLong = 1. if the price is lower than the lower bound then expiryPercentLong = 0. For example, consider a linear LSP on the price of ETH collateralized in USDC with an upperBound = 4000 and lowerBound = 2000 with a collateralPerPair of 1000 (i.e each pair of long and shorts is worth 1000 USDC). At settlement the expiryPercentLong would equal 1 (each long worth 1000 and short worth 0) if ETH price was > 4000 and it would equal 0 if < 2000 (each long is worthless and each short is worth 1000). If between the two (say 3500) then expiryPercentLong = (3500 - 2000) / (4000 - 2000) = 0.75. Therefore each long is worth 750 and each short is worth 250.

Functions#

setLongShortPairParameters(address longShortPair, int256 upperBound, int256 lowerBound) (public)

Enables any address to set the parameters for an associated financial product.

Note: a) Any address can set these parameters b) existing LSP parameters for address not set. c) upperBound > lowerBound. d) parameters can only be set once to prevent the deployer from changing the parameters after the fact. e) For safety, parameters should be set before depositing any synthetic tokens in a liquidity pool. f) longShortPair must expose an expirationTimestamp method to validate it is correctly deployed.

Parameters:#

  • longShortPair: address of the LSP contract.
  • upperBound: the upper price that the linear LSP will operate within.
  • lowerBound: the lower price that the linear LSP will operate within.
percentageLongCollateralAtExpiry(int256 expiryPrice) → uint256 (public)

Returns a number between 0 and 1e18 to indicate how much collateral each long and short token is entitled to per collateralPerPair.

Parameters:#

  • expiryPrice: price from the optimistic oracle for the LSP price identifier.
_preEntranceCheck() (internal)
_preEntranceSet() (internal)
_postEntranceReset() (internal)

Modifiers#

nonReentrant()

Prevents a contract from calling itself, directly or indirectly. Calling a nonReentrant function from another nonReentrant function is not supported. It is possible to prevent this from happening by making the nonReentrant function external, and making it call a private function that does the actual state modification.

nonReentrantView()

Designed to prevent a view-only method from being re-entered during a call to a nonReentrant() state-changing method.