⚠️ WARNING: This code has not yet been audited. Use at your own risk.
Automated market makers enable instant cross-border payments (e.g. USDC -> EUROC), but currently can't hedge the exchange rate risk for conditional one such as recurring or future payments, a critical problem for businesses and global remittances. For anyone looking to lock in a specific exchange rate for a specific time, Numo can do so for any FX pair without needing to find a counterparty.
Numo is is a log-normal AMM that is built as a Uniswap V4 hook. It's trading curve enables the construction of synthetic derivative exposures, with cash-settled FX forwards being the most powerful application. Forwards allow anyone to lock in an exchange rate for a specific time. Under the hood, each forward is a liquidity provider (LP) position in Numo repersented as an ERC-20. Arbitrageurs then rebalance the LP position so that the desired payoff of a forward is always maintained. In other words, the exhange rate is always maintained. This process is known as payoff replication and typically done by sophicated market makers when their is an illiquid market. Similar to traditional forwards, users set a pair of strikes and an expiry to match their needs.
- ✅ No exchange rate risk
- 🌍 Globally accessible
- 🤝 No reliance on counterparties
- 🛠️ Customizability
The smart contract suite is inspired by Primitive's RMM implementation and the replicating market makers paper that first proved that any synethic derivative expsoure can be constructed using AMMs without needing a liquid options market.
Requires forge to be installed already.
forge install
forge test -vvv
forge coverage --report lcov
cmd + shift + p -> Coverage Gutters: Display Coverage
forge snapshot --gas-report
forge snapshot --diff
git submodule update --init --recursive| Network | Factory Address |
|---|---|
| Unichain Sepolia | 0x82360b9a2076a09ea8abe2b3e11aed89de3a02d1 |