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Liquidity-weighted dex price oracle for offchain price discovery

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Spot Price Aggregator

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The 1inch spot price aggregator is a set of smart contracts that extract price data for tokens traded on DEXes from the blockchain. To avoid price manipulations within a transaction, the spot price aggregator should ONLY be used off-chain. DO NOT use it on-chain. For off-chain usage see Examples section below.

Wrappers

To handle wrapped tokens, such as wETH, cDAI, aDAI etc., the 1inch spot price aggregator uses custom wrapper smart contracts that wrap/unwrap tokens at the current wrapping exchange rate.

Connectors

If no direct liquidity pair exists between two tokens, the spot price aggregator calculates rates for those coins using another token that has pairs with both of them – a connector token.

Supported Deployments

Ethereum Mainnet

Supported DEXes
Supported wrappers
Supported connectors
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Binance Smart Chain (BSC, BNB)

Supported DEXes
Supported wrappers
Supported connectors
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Polygon (Matic)

Supported DEXes
Supported wrappers
Supported connectors
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Optimism (Optimistic)

Supported DEXes
Supported wrappers
Supported connectors
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Arbitrum

Supported DEXes
Supported wrappers
Supported connectors
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Avalanche (Avax)

Supported DEXes
Supported wrappers
Supported connectors
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Gnosis (xDai)

Supported DEXes
Supported wrappers
Supported connectors
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Fantom

Supported DEXes
Supported wrappers
Supported connectors
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Aurora

Supported DEXes
Supported wrappers
Supported connectors
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Klaytn

Supported DEXes
Supported wrappers
Supported connectors
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zkSync

Supported DEXes
Supported wrappers
Supported connectors
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Base

Supported DEXes
Supported wrappers
Supported connectors
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Examples

Oracle Deployment Guide

This section provides a comprehensive guide on deploying an oracle, including the nuances of script parameters and additional setup steps. Follow these steps to ensure accurate and reliable oracle deployment for price data retrieval.

Step 1: Surveying DEX Liquidity

  1. Identify DEXes with Sufficient Liquidity: Begin by surveying the network for Decentralized Exchanges (DEXes) that offer sufficient liquidity. This ensures the oracle can retrieve reliable and accurate price data.

Step 2: Selection of DEXes

  1. Select Supported DEXes: Choose DEXes that are supported by SpotPriceAggregator or are forks of supported protocols. Supported DEXes can be found in the contracts/oracles/ directory of the project.

Step 3: Network Configuration

  1. Configure the Network Settings:
    • Skip this step if your network is supported. This can be checked by observing whether the network is mentioned (registered or not) during a test run, visible in the console output. This verification can be done also by reviewing the registerAll method in the Networks class. If your network is listed there, it's considered supported, and no further action is required for registration in this step.
    • Update the Hardhat settings file to configure the network.
    • Utilize the Networks class from solidity-utils for network registration.
    • Example configuration snippet:
      ...
      const { Networks } = require('@1inch/solidity-utils/hardhat-setup');
      const net = new Networks(true, 'mainnet', true);
      net.register(your_network_name, networkId, process.env.YOURNETWORK_RPC_URL, process.env.YOURNETWORK_PRIVATE_KEY, etherscan_network_name, process.env.YOURNETWORK_ETHERSCAN_KEY);
      const networks = net.networks;
      const etherscan = net.etherscan;
      ...

Step 4: Environment Variables

  1. Set Environment Variables: Define necessary environment variables in the .env file located at the project root. Include variables such as YOURNETWORK_RPC_URL, YOURNETWORK_PRIVATE_KEY, and YOURNETWORK_ETHERSCAN_KEY with appropriate values:

    • YOURNETWORK_RPC_URL: The RPC URL for accessing your network's node. This URL can support the HTTP header 'auth-key'. To use this header, append the header value to the URL using the | symbol. For example: http://localhost:8545|HeaderValue. This format allows you to authenticate requests to your node.

    • YOURNETWORK_PRIVATE_KEY: Your account's private key, which should be entered without the 0x prefix. This key is used for deploying contracts and executing transactions on the network.

    • YOURNETWORK_ETHERSCAN_KEY: The API key for an Etherscan-like blockchain explorer that supports your network. This key is necessary for verifying and publishing your contract's source code. Ensure you register for an API key with a compatible explorer service for your network.

Step 5: Deploying Oracles

  1. Deploy Oracles:
    • Use the deploy script located at deploy/commands/simple-deploy.js. You can find a description of the script and how to use it in the scripts description.
    • Configure the PARAMS object for each protocol you wish to deploy an oracle for. The parameters include:
      • contractName: Name of the contract from the contracts/oracles/ directory.
      • args: Arguments required by the contract (See contract's constructor).
      • deploymentName: A name for your deployment, which will be used to create a file in the deployments/ directory.
    • Ensure the skip flag is set to false to proceed with deployment.
    • Example command for deployment: yarn && yarn deploy <your_network_name>.

Step 6: Deploying Wrappers

  1. Deploy Wrappers:
    • Follow similar steps as step 5 to deploy necessary wrappers and MultiWrapper. You can find different wrappers in the contracts/wrappers/ directory. After MultiWrapper is deployed, it will be possible to edit these lists of wrappers.

Step 7: Deploying OffchainOracle

  1. Deploy OffchainOracle:
    • Follow similar steps as step 5 to deploy the OffchainOracle. Make sure to include the deployed oracles (from step 5), MultiWrapper with wrappers (from step 6) and specifying the tokens you wish to use as connectors for price discovery. After OffchainOracle is deployed, it will be possible to edit these lists of oracles and connectors.

Support and Assistance

For any questions or further assistance, don't hesitate to reach out (for example via issue). This guide aims to facilitate your oracle deployment process, ensuring a smooth and reliable setup.

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