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Add dynamic decimal support and slippage protection for cross-chain vault operations #1758

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Add dynamic decimal support and slippage protection for cross-chain vault operations #1758

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57 changes: 50 additions & 7 deletions examples/ovault-evm/tasks/sendOVaultComposer.ts
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Original file line number Diff line number Diff line change
Expand Up @@ -283,7 +283,7 @@ task('lz:ovault:send', 'Sends assets or shares through OVaultComposer with autom
args.lzComposeGas ||
(args.dstEid === hubEid
? 175000 // Lower gas for local transfer only
: 395000) // Higher gas for cross-chain messaging
: 1000000) // TODO: include some form of gas estimation + buffer if not the destination tx will fail, the earlier gas of 395000 did not result in a successful tx

if (!args.lzComposeGas) {
logger.info(`Using ${args.dstEid === hubEid ? 'local transfer' : 'cross-chain'} gas limit: ${lzComposeGas}`)
Expand Down Expand Up @@ -313,17 +313,37 @@ task('lz:ovault:send', 'Sends assets or shares through OVaultComposer with autom
const vault = await hubHre.ethers.getContractAt(ierc4626Artifact.abi, vaultAddress, hubSigner)

// Convert input amount to proper units and preview vault operation
const inputAmountUnits = parseUnits(args.amount, 18) // Assuming 18 decimals
// TODO: Do not assume decimals - fetch them dynamically from the contracts
const assetAddress = await vault.asset()

// Use minimal ABI with just decimals() function for reliable decimal fetching
const erc20DecimalsAbi = ['function decimals() view returns (uint8)']
const assetToken = new hubHre.ethers.Contract(assetAddress, erc20DecimalsAbi, hubSigner)
const assetDecimals = await assetToken.decimals()
console.log('assetDecimals', assetDecimals)

// Fetch share decimals from vault (shares are ERC20-compliant)
const shareToken = new hubHre.ethers.Contract(vaultAddress, erc20DecimalsAbi, hubSigner)
const shareDecimals = await shareToken.decimals()

// Use correct decimals based on input token type
const inputDecimals = args.tokenType === 'asset' ? assetDecimals : shareDecimals
const outputDecimals = args.tokenType === 'asset' ? shareDecimals : assetDecimals

const inputAmountUnits = parseUnits(args.amount, inputDecimals)
console.log('assetDecimals:', assetDecimals, 'shareDecimals:', shareDecimals, 'inputDecimals:', inputDecimals)
console.log('inputAmountUnits', inputAmountUnits.toString())
let expectedOutputAmount: string
let minAmountOut: string

if (args.tokenType === 'asset') {
// Depositing assets → getting shares
try {

const previewedShares = await vault.previewDeposit(inputAmountUnits)
expectedOutputAmount = previewedShares.toString()
logger.info(
`Vault preview: ${args.amount} ${args.tokenType} → ${(parseInt(expectedOutputAmount) / 1e18).toFixed(6)} ${outputType}`
`Vault preview: ${args.amount} ${args.tokenType} → ${(parseInt(expectedOutputAmount) / (10 ** shareDecimals)).toFixed(6)} ${outputType}`
)
} catch (error) {
logger.warn(`Vault preview failed, using 1:1 estimate`)
Expand All @@ -335,7 +355,7 @@ task('lz:ovault:send', 'Sends assets or shares through OVaultComposer with autom
const previewedAssets = await vault.previewRedeem(inputAmountUnits)
expectedOutputAmount = previewedAssets.toString()
logger.info(
`Vault preview: ${args.amount} ${args.tokenType} → ${(parseInt(expectedOutputAmount) / 1e18).toFixed(6)} ${outputType}`
`Vault preview: ${args.amount} ${args.tokenType} → ${(parseInt(expectedOutputAmount) / (10 ** assetDecimals)).toFixed(6)} ${outputType}`
)
} catch (error) {
logger.warn(`Vault preview failed, using 1:1 estimate`)
Expand All @@ -344,10 +364,18 @@ task('lz:ovault:send', 'Sends assets or shares through OVaultComposer with autom
}

// Calculate min amount with slippage protection
// Use output token decimals (shares for deposit, assets for redeem)
if (args.minAmount) {
minAmountOut = parseUnits(args.minAmount, 18).toString()
minAmountOut = parseUnits(args.minAmount, outputDecimals).toString()
console.log('minAmountOut', minAmountOut)
} else {
minAmountOut = expectedOutputAmount
// TODO: Apply 0.5% slippage tolerance using BigNumber math to avoid precision loss
const slippageBps = 50 // 50 basis points = 0.5%
minAmountOut = hubHre.ethers.BigNumber.from(expectedOutputAmount)
.mul(10000 - slippageBps)
.div(10000)
.toString()
console.log('minAmountOut with 0.5% slippage:', minAmountOut)
}

// Create the SendParam for second hop (hub → destination) - used for both quoting and composeMsg
Expand Down Expand Up @@ -403,6 +431,11 @@ task('lz:ovault:send', 'Sends assets or shares through OVaultComposer with autom
)
} catch (error) {
logger.warn(`Quote failed, using default: 0.025 ETH`)
// TODO: include more details on the error
logger.warn(`Quote error details: ${error instanceof Error ? error.message : String(error)}`)
if (error && typeof error === 'object' && 'data' in error) {
logger.warn(`Error data: ${JSON.stringify((error as any).data)}`)
}
lzComposeValue = '25000000000000000' // 0.025 ETH default
}
}
Expand Down Expand Up @@ -439,14 +472,23 @@ task('lz:ovault:send', 'Sends assets or shares through OVaultComposer with autom
? [args.lzReceiveGas.toString(), args.lzReceiveValue || '0']
: undefined

// TODO: Calculate minAmount for first hop with 0.5% slippage for stablecoin transfers
// This is the minimum amount expected to arrive at the hub after the first bridge
const slippageBps = 50 // 50 basis points = 0.5%
const firstHopMinAmount = args.minAmount ||
(parseFloat(args.amount) * (1 - slippageBps / 10000)).toFixed(inputDecimals)

logger.info(`First hop min amount (with ${(slippageBps / 100).toFixed(2)}% slippage): ${firstHopMinAmount}`)

// Call the existing sendEvm function with proper parameters
console.log('extraLzComposeOptions', extraLzComposeOptions)
const evmArgs: EvmArgs = {
srcEid: args.srcEid,
dstEid: hubEid, // Send to HUB first
amount: args.amount,
to: composerAddress, // Send to composer
oappConfig: configPath,
minAmount: args.minAmount,
minAmount: firstHopMinAmount, // Apply slippage to first hop
extraLzReceiveOptions: extraLzReceiveOptions, // Optional lzReceive options
extraLzComposeOptions: extraLzComposeOptions,
extraNativeDropOptions: undefined,
Expand Down Expand Up @@ -482,3 +524,4 @@ task('lz:ovault:send', 'Sends assets or shares through OVaultComposer with autom
`LayerZero Scan link for tracking all cross-chain transaction details: ${result.scanLink}`
)
})

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