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Architecture Overview

Forking Uniswap v2​

​To build a lending protocol into the Uniswap v2 pair contract, Ammalgam began as a fork of the Uniswap v2 contracts. However, the DLEX design requires various deposit borrow tokens and, as such, multiple ERC-20s. Thus, the single contract of the Uniswap v2 Pair was significantly modified.

Pair contracts​

The Uniswap v2 pair contract is an ERC-20 token that amongst other information represents the share of swap liquidity a user deposited into the pair. To accommodate the DLEX structure and to avoid code space constraints, Ammalgam’s architecture removes the ERC-20 representing swap liquidity of the logic out of the original V2 Pair contract and splits the pair contract into seven, separate contracts.

The exterior contracts create six tokens representing the six functions of Ammalgam.

pair contracts

The interior contract, labeled in the diagram Uniswap v2 Lending Pool, contains most of remaining UniswapV2 interface as well as the addition of lending functions and libraries.

The interior contract, labeled in our diagram Uniswap v2 Lending Pool, contains most of the initial IUniswapV2 interface except for those functions associated with the IERC20 that were moved. Additionally lending functions and libraries have been added to the pair contract.

Users can also deposit asset X or Y individually to be used as collateral and to be lent out to earn yield, but not to be used to fill swaps or earn swap fees.

ERC-4626 Vault Standard​

When borrowing X, Y, or L a transferable debt token is issued to borrowers. We use the ERC-4626 vault standard to represent deposits, but only use the ERC-20 for swap liquidity due to the fact that there are two underlying assets with a variable share to asset rate depending on price.