BTB Liquidity Protection V4 - Foundry Implementation

A Uniswap V4 hook implementation providing advanced liquidity protection mechanisms, featuring impermanent loss protection and enhanced fee distribution. Built with Foundry for Ethereum development.

Features

Core Protection Mechanisms:

• Impermanent Loss Protection with reserve pool
• Dynamic Fee Distribution:
  • 80% to Liquidity Providers
  • 15% to IL Protection Reserve
  • 5% to Governance Token Holders
• Liquidity Provider Rewards System
• Position Management Utilities

Advanced Functionality:

• Chainlink Price Feed Integration
• Flexible Hook Permissions:
  • Before/After Add/Remove Liquidity
  • Before/After Swap
  • Delta Return capabilities
• CREATE2 Deployment Support

Architecture

Core Components

• LiquidityProtectionHook.sol
  Main hook contract inheriting from Uniswap v4's BaseHook
• BTBHook.sol
  Core implementation for position tracking and fee management
• MockPriceFeed.sol
  Test implementation of Chainlink's AggregatorV3Interface
• HookDeployer.sol
  CREATE2 utility for deterministic deployments

System Integration

• Price Oracle: Chainlink with fallback mechanisms
• Fee Distribution: Atomic operations with reentrancy protection
• Access Control: Owner-restricted critical functions

Development Setup

Prerequisites

• Foundry
• Solidity ^0.8.26
• Node.js (for deployment scripts)

Installation

# Clone repository
git clone https://github.com/btb-finance/BTBLiquidityProtection.git
cd BTBLiquidityProtection

# Install dependencies
forge install

# Build project
forge build

Usage

Testing

# Run all tests
forge test --ffi

# Run specific test with verbosity
forge test --match-test test_HookRegistration -vvv

Deployment

# Deploy to network
forge script script/Deploy.s.sol:Deploy --rpc-url $RPC_URL --private-key $PRIVATE_KEY

# Verify contract
forge verify-contract $CONTRACT_ADDRESS src/hooks/LiquidityProtectionHook.sol:LiquidityProtectionHook

Key Operations

// Set price feed for pool
hook.setPriceFeed(poolKey, PRICE_FEED_ADDRESS);

// Update voter shares
hook.updateVoterShares(voterAddress, newShares);

// Claim IL protection
hook.claimILProtection(poolKey, positionId);

Security

Key Considerations

• Price Reliability: Chainlink feeds with fallback mechanisms
• Access Controls: Owner-restricted critical functions
• Fee Safety: Atomic distribution operations
• Reentrancy Protection: Secure modifiers on all hook functions

Contributing

1. Fork the repository
2. Create feature branch: git checkout -b feature/new-feature
3. Commit changes: git commit -m 'Add new feature'
4. Push to branch: git push origin feature/new-feature
5. Open Pull Request

License

MIT - See LICENSE for details

Acknowledgments

• Uniswap v4 Team for hook architecture
• Chainlink for oracle infrastructure
• OpenZeppelin for security patterns
• Paradigm for Foundry toolkit