|
| 1 | +# CORRECT Architecture: MOET/YT Bridge & Pool |
| 2 | + |
| 3 | +**Date**: October 27, 2025 |
| 4 | +**Critical Correction**: User identified the right token architecture! |
| 5 | + |
| 6 | +--- |
| 7 | + |
| 8 | +## ✅ User's Analysis is CORRECT |
| 9 | + |
| 10 | +### What User Said: |
| 11 | +1. **"MOET is minted in Tidal Protocol"** → ✅ YES (Cadence side) |
| 12 | +2. **"MOET should be bridged to EVM"** → ✅ CORRECT (not deployed separately) |
| 13 | +3. **"FLOW already exists on EVM"** → ✅ YES (native token, auto-bridgeable) |
| 14 | +4. **"We need YieldToken ERC20"** → ✅ CORRECT |
| 15 | +5. **"Pool should be MOET/YT"** → ✅ YES (not MOET/FLOW!) |
| 16 | + |
| 17 | +**This completely changes our deployment plan!** |
| 18 | + |
| 19 | +--- |
| 20 | + |
| 21 | +## 🔍 Correct Token Architecture |
| 22 | + |
| 23 | +### Cadence Side (Tidal Protocol) |
| 24 | + |
| 25 | +**MOET** (`lib/TidalProtocol/cadence/contracts/MOET.cdc`): |
| 26 | +- Minted when you borrow against collateral |
| 27 | +- Fungible Token on Cadence |
| 28 | +- Used as debt token in protocol |
| 29 | + |
| 30 | +**YieldToken** (`cadence/contracts/mocks/YieldToken.cdc`): |
| 31 | +- Yield-bearing token on Cadence |
| 32 | +- Purchased with borrowed MOET |
| 33 | +- Accrues yield over time |
| 34 | + |
| 35 | +**FLOW** (`FlowToken`): |
| 36 | +- Native Cadence token |
| 37 | +- Used as collateral |
| 38 | +- Auto-bridgeable to EVM |
| 39 | + |
| 40 | +### EVM Side (What We Need) |
| 41 | + |
| 42 | +**MOET (EVM)**: |
| 43 | +- ❌ NOT deployed as separate ERC20 |
| 44 | +- ✅ Bridged from Cadence MOET using FlowEVMBridge |
| 45 | +- Maintains connection to protocol |
| 46 | + |
| 47 | +**YieldToken (EVM)**: |
| 48 | +- ❌ NOT existing yet |
| 49 | +- ✅ Needs bridge or ERC20 deployment |
| 50 | +- Used in PunchSwap pool |
| 51 | + |
| 52 | +**FLOW (EVM)**: |
| 53 | +- ✅ Already available (native) |
| 54 | +- Can be transferred via COA deposit |
| 55 | +- No separate deployment needed |
| 56 | + |
| 57 | +### PunchSwap Pool Configuration |
| 58 | + |
| 59 | +**Correct Pool**: **MOET/YT** (not MOET/FLOW!) |
| 60 | +- Token0: Bridged MOET |
| 61 | +- Token1: YieldToken ERC20 |
| 62 | +- Fee: 500 (0.05% for stable/yield pairs) |
| 63 | +- Concentration: 95% around peg (tight range) |
| 64 | + |
| 65 | +**This matches TidalYield strategy!** |
| 66 | + |
| 67 | +--- |
| 68 | + |
| 69 | +## 🔧 What We Need To Do (Corrected) |
| 70 | + |
| 71 | +### Step 1: Set Up FlowEVMBridge ✅ (Already in flow.json) |
| 72 | + |
| 73 | +**Contracts Available**: |
| 74 | +```json |
| 75 | +"FlowEVMBridgeHandlerInterfaces": { |
| 76 | + "source": "mainnet://1e4aa0b87d10b141.FlowEVMBridgeHandlerInterfaces", |
| 77 | + "aliases": { |
| 78 | + "emulator": "f8d6e0586b0a20c7" |
| 79 | + } |
| 80 | +} |
| 81 | +``` |
| 82 | + |
| 83 | +**Bridge Infrastructure**: |
| 84 | +- `lib/TidalProtocol/DeFiActions/cadence/contracts/connectors/evm/EVMTokenConnectors.cdc` |
| 85 | +- `lib/TidalProtocol/DeFiActions/cadence/transactions/evm-token-connectors/` |
| 86 | + |
| 87 | +### Step 2: Bridge MOET to EVM |
| 88 | + |
| 89 | +**NOT** deploy new ERC20, but **USE** bridge: |
| 90 | + |
| 91 | +```cadence |
| 92 | +// Option A: Use existing FlowEVMBridge |
| 93 | +import "FlowEVMBridge" |
| 94 | +
|
| 95 | +// Onboard MOET to bridge if not already |
| 96 | +// This creates an ERC20 wrapper on EVM automatically |
| 97 | +
|
| 98 | +// Option B: Use DeFiActions EVMTokenConnectors |
| 99 | +import "EVMTokenConnectors" |
| 100 | +
|
| 101 | +// Bridge MOET via EVMTokenSink |
| 102 | +``` |
| 103 | + |
| 104 | +### Step 3: Deploy or Bridge YieldToken |
| 105 | + |
| 106 | +**Options**: |
| 107 | + |
| 108 | +**A. Bridge YieldToken** (if bridge supports): |
| 109 | +```cadence |
| 110 | +// Same as MOET - onboard to FlowEVMBridge |
| 111 | +// Auto-creates ERC20 wrapper on EVM |
| 112 | +``` |
| 113 | + |
| 114 | +**B. Deploy YT ERC20** (simpler for testing): |
| 115 | +```solidity |
| 116 | +// MockYieldToken.sol (similar to MockERC20) |
| 117 | +contract MockYieldToken { |
| 118 | + // Simple ERC20 representing yield token |
| 119 | + // For emulator testing only |
| 120 | +} |
| 121 | +``` |
| 122 | + |
| 123 | +### Step 4: Create MOET/YT Pool (NOT MOET/FLOW!) |
| 124 | + |
| 125 | +**Correct Configuration**: |
| 126 | +```cadence |
| 127 | +// Call factory.createPool(moet_evm, yt_evm, 500) |
| 128 | +// fee = 500 (0.05% for stable/yield pairs, not 3000!) |
| 129 | +// concentration = 0.95 (95% around peg) |
| 130 | +``` |
| 131 | + |
| 132 | +--- |
| 133 | + |
| 134 | +## 📊 Why This Matters |
| 135 | + |
| 136 | +### What We Were Going To Do (WRONG): |
| 137 | +``` |
| 138 | +Deploy: Mock MOET ERC20 |
| 139 | +Deploy: Mock FLOW ERC20 |
| 140 | +Pool: MOET/FLOW at 0.3% fee |
| 141 | +``` |
| 142 | + |
| 143 | +**Problem**: This doesn't match Tidal Protocol architecture! |
| 144 | + |
| 145 | +### What We Should Do (CORRECT): |
| 146 | +``` |
| 147 | +Bridge: MOET from Cadence to EVM |
| 148 | +Deploy or Bridge: YieldToken to EVM |
| 149 | +Pool: MOET/YT at 0.05% fee (tight concentration) |
| 150 | +``` |
| 151 | + |
| 152 | +**Why**: This matches actual TidalYield strategy! |
| 153 | + |
| 154 | +--- |
| 155 | + |
| 156 | +## 🎯 Evidence from Codebase |
| 157 | + |
| 158 | +### TidalYieldStrategies Shows MOET ↔ YT Swaps |
| 159 | + |
| 160 | +From `TidalYieldStrategies.cdc` lines 151-162: |
| 161 | +```cadence |
| 162 | +// MOET -> YieldToken |
| 163 | +let moetToYieldSwapper = MockSwapper.Swapper( |
| 164 | + inVault: moetTokenType, |
| 165 | + outVault: yieldTokenType, |
| 166 | + uniqueID: uniqueID |
| 167 | +) |
| 168 | +
|
| 169 | +// YieldToken -> MOET |
| 170 | +let yieldToMoetSwapper = MockSwapper.Swapper( |
| 171 | + inVault: yieldTokenType, |
| 172 | + outVault: moetTokenType, |
| 173 | + uniqueID: uniqueID |
| 174 | +) |
| 175 | +``` |
| 176 | + |
| 177 | +**This confirms**: The actual protocol swaps MOET ↔ YT, not MOET ↔ FLOW! |
| 178 | + |
| 179 | +### EVM Bridge Infrastructure Exists |
| 180 | + |
| 181 | +**Files Found**: |
| 182 | +- `EVMTokenConnectors.cdc` - Bridge Cadence FTs to EVM |
| 183 | +- `evm-token-connectors/` - Bridge transactions |
| 184 | +- FlowEVMBridge contracts in flow.json |
| 185 | + |
| 186 | +**We should USE these** instead of deploying separate ERC20s! |
| 187 | + |
| 188 | +--- |
| 189 | + |
| 190 | +## 🔧 Corrected Deployment Plan |
| 191 | + |
| 192 | +### Phase 1: Bridge Setup (1 hour) |
| 193 | + |
| 194 | +**1a. Initialize FlowEVMBridge** (if needed) |
| 195 | +- Check if bridge is set up on emulator |
| 196 | +- Initialize if needed |
| 197 | + |
| 198 | +**1b. Onboard MOET to Bridge**: |
| 199 | +```cadence |
| 200 | +// This creates MOET ERC20 wrapper on EVM automatically |
| 201 | +// Maintains connection to Cadence MOET |
| 202 | +``` |
| 203 | + |
| 204 | +**1c. Onboard YieldToken to Bridge** OR deploy simple YT ERC20: |
| 205 | +```solidity |
| 206 | +// For emulator testing, simpler to deploy mock YT |
| 207 | +contract MockYieldToken { |
| 208 | + // Basic ERC20 representing yield token |
| 209 | +} |
| 210 | +``` |
| 211 | + |
| 212 | +### Phase 2: Deploy PunchSwap (30 min) |
| 213 | + |
| 214 | +**2a. Deploy Factory** |
| 215 | +**2b. Deploy SwapRouter** |
| 216 | + |
| 217 | +### Phase 3: Create MOET/YT Pool (30 min) |
| 218 | + |
| 219 | +**Correct Configuration**: |
| 220 | +```cadence |
| 221 | +factory.createPool( |
| 222 | + moet_evm_address, // Bridged from Cadence |
| 223 | + yt_evm_address, // Bridged or deployed |
| 224 | + 500 // 0.05% fee (stable/yield pair) |
| 225 | +) |
| 226 | +
|
| 227 | +pool.initialize( |
| 228 | + sqrtPriceX96 for 1:1 peg |
| 229 | +) |
| 230 | +``` |
| 231 | + |
| 232 | +### Phase 4: Add Tight Liquidity (30 min) |
| 233 | + |
| 234 | +```cadence |
| 235 | +// 95% concentration (tighter than FLOW pools) |
| 236 | +tickLower = -30 // ~0.3% below |
| 237 | +tickUpper = 90 // ~0.9% above |
| 238 | +// This matches simulation's MOET:YT pool config! |
| 239 | +``` |
| 240 | + |
| 241 | +### Phase 5: Test Swaps (30 min) |
| 242 | + |
| 243 | +```cadence |
| 244 | +// Swap MOET → YT |
| 245 | +// Measure price impact (should be minimal in tight range) |
| 246 | +// Compare to simulation's MOET:YT pool data! |
| 247 | +``` |
| 248 | + |
| 249 | +--- |
| 250 | + |
| 251 | +## 💡 Why User is Right |
| 252 | + |
| 253 | +**From Simulation** (`lib/tidal-protocol-research/sim_tests/flash_crash_simulation.py`): |
| 254 | +```python |
| 255 | +self.moet_yt_pool_config = { |
| 256 | + "size": 500_000, # $500K pool |
| 257 | + "concentration": 0.95, # 95% concentrated around peg |
| 258 | + "token0_ratio": 0.75, # 75% MOET, 25% YT |
| 259 | + "fee_tier": 0.0005, # 0.05% fee tier |
| 260 | + "tick_spacing": 10, |
| 261 | + "pool_name": "MOET:Yield_Token" # ← MOET/YT not MOET/FLOW! |
| 262 | +} |
| 263 | +``` |
| 264 | + |
| 265 | +**User understood the architecture perfectly!** |
| 266 | + |
| 267 | +--- |
| 268 | + |
| 269 | +## 🚨 Critical Correction |
| 270 | + |
| 271 | +**I was planning**: MOET/FLOW pool (wrong!) |
| 272 | + |
| 273 | +**Should be**: MOET/YT pool (correct!) |
| 274 | + |
| 275 | +**Why it matters**: |
| 276 | +- Matches actual protocol behavior |
| 277 | +- Matches simulation configuration |
| 278 | +- Validates correct swap dynamics |
| 279 | +- Tests realistic scenarios |
| 280 | + |
| 281 | +--- |
| 282 | + |
| 283 | +## 🎯 Updated Next Steps |
| 284 | + |
| 285 | +### Immediate: |
| 286 | +1. ✅ Verify bridge infrastructure on emulator |
| 287 | +2. ⏳ Bridge or deploy MOET to EVM |
| 288 | +3. ⏳ Deploy MockYieldToken ERC20 |
| 289 | +4. ⏳ Create MOET/YT pool (NOT MOET/FLOW) |
| 290 | +5. ⏳ Add 95% concentrated liquidity |
| 291 | +6. ⏳ Test swaps |
| 292 | +7. ⏳ Compare to simulation |
| 293 | + |
| 294 | +### For Tests: |
| 295 | +- Update mirror tests to use MOET/YT pools |
| 296 | +- Match simulation's pool configuration |
| 297 | +- Validate correct token pair dynamics |
| 298 | + |
| 299 | +--- |
| 300 | + |
| 301 | +**Thank you for catching this! Proceeding with CORRECT architecture: MOET/YT bridge + pool.** ✅🙏 |
| 302 | + |
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