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Router Liquidations

| Overview | Examples | Flash Swaps |

Overview

The TpdaLiquidationRouter is a helper contract that enforces configurable protections on swaps made through TpdaLiquidationPair contracts deployed through the factory. If a liquidation does not require any special functionality, then it is recommended to use the router instead of interacting directly with the TpdaLiquidationPair. The router also provides the benefit of only needing to approve prize token spending on one contract rather than each individual pair.

Examples

The TpdaLiquidationRouter has a function called swapExactAmountOut:

function swapExactAmountOut(
    contract TpdaLiquidationPair _liquidationPair,
    address _receiver,
    uint256 _amountOut,
    uint256 _amountInMax,
    uint256 _deadline
) external returns (uint256)

As the name suggests, this function takes an _amountOut parameter (denoted in vault tokens for the specific TpdaLiquidationPair) that the _receiver will receive in a successful execution as well as an _amountInMax parameter that limits the amount of prize tokens that can be payed for the swap. If this limit is exceeded, the transaction will revert. Additionally, there is a _deadline parameter that acts as a failsafe incase the transaction is not included in a block by the specified timestamp.

Swap 0.001 WETH for 4 przUSDC:

swapExactAmountOut(
    TpdaLiquidationPair(0x7d72e1043FBaCF54aDc0610EA8649b23055462f0), // LP for przUSDC on Optimism
    address(msg.sender), // replace with your receiver address,
    0.001e18, // 0.001 WETH
    4e6, // 4 przUSDC
    1714144434 // deadline (replace with current timestamp + max inclusion time)
);

If the liquidation is successful, the following event will be emitted:

event SwappedExactAmountOut(
    TpdaLiquidationPair indexed liquidationPair,
    address indexed sender,
    address indexed receiver,
    uint256 amountOut,
    uint256 amountInMax,
    uint256 amountIn,
    uint256 deadline
);

Flash Swaps

The TpdaLiquidationPair contract supports flash swaps through a callback that is triggered after the prize tokens are transferred to the receiver. Flashswaps are not possible through the TpdaLiquidationRouter and require a special implementation to function.

For an example on executing a flash swap through a specific pair, see the flash swap example.