EIP-0014: Decentralized Exchange Contracts

[kushti]

• Author: kushti, Ilya Oskin
• Status: Proposed
• Created: 12-Mar-2021
• Last edited: 15-Mar-2021
• Track: Standards

Motivation

Act of exchange without trusted parties is a most basic primitive for decentralized finance on top of blockchains. Thus contracts for that were introduced early, and basic single-chain swap contract was introduced early in the ErgoScript whitepaper. Then a lot of other order contracts appeared: with partial filling, buyback guarantee and so on. What is good for traders in decentralized worlds, such contracts are usually composable. While swap order contracts allows for orderbook-based decentralized exchanges (DEXes), now popular AMM-based DEXes (where AMM stands for Automated Market Maker) also possible on Ergo. Interestingly, unlike other known blockchains, thanks to the extended UTXO model, liquidity pool contracts for AMM-based DEXes can be combined with order contracts (for orderbook-based DEXes). This gives unique possibility to have shared liquidity among different types of exchanges on top of the Ergo blockchain.

This PR provides known DEX contracts for both orderbook-based and AMM-based DEXes, and also provides info on their composability.

[oskin1]

Added description for all script parameters.