// SPDX-License-Identifier: GPL-3.0

pragma solidity >=0.8.2 <0.9.0;

contract Storage {

    uint256 number;
    
    function store(uint256 num) public {
        number = num;
    }

    function retrieve() public view returns (uint256){
        return number;
    }
}

Sample code 2

// SPDX-License-Identifier: GPL-3.0

pragma solidity ^0.8.20;

import "https://github.com/OpenZeppelin/openzeppelin-contracts/blob/v5.0.0/contracts/token/ERC20/ERC20.sol";
import "https://github.com/OpenZeppelin/openzeppelin-contracts/blob/v5.0.0/contracts/access/Ownable.sol";

contract Register {
    function register(address _recipient) public returns (uint256 tokenId) {}
}

contract ModeToken is Ownable, ERC20 {

    address feeReceiver = msg.sender;
    
    constructor() ERC20("ModeTokenSFSTest", "SFST2") Ownable(msg.sender) {
        _mint(msg.sender, 1000 * 10 ** 18); //Example amount to mint our ERC20
        feeReceiver = msg.sender; //The deployer of the contract will get the NFT to widthraw the earned fees
    }

    /// @dev Registers this contract and assigns the NFT to the owner of this contract
    /// @param sfsContractAddress This address is the address of the SFS contract
    function registerThis(address sfsContractAddress) public onlyOwner returns (uint256 tokenId){
        Register sfsContract = Register(sfsContractAddress);
        return sfsContract.register(Ownable.owner());
    }
}

Let's start from the beginning...

🌀 Uniswap brought VitalikButerin 's idea of AMM into production in 2018. This was the era of transition from peer-to-peer to peer-to-pool.

🌀Uniswap v1 liquidity pools, used a simple mathematical formula: x*y=k

🌀 Uniswap's pricing mechanism balances pools by adapting token prices to supply and demand.

🌀 It provides liquidity over the entire trading range (0, ∞), so there may be significant price change in larger transactions due to the constant product influence of the model.

• Impermanent loss

• High slippage

• Low capital efficiency

were the weak points of this model.

🌀In November 2019, Michael Egorov, founder of CurveFinance , introduced "Stableswap" in a whitepaper tackling the issues of CP-AMM described above

🌀The idea is to provide concentrated liquidity around the 1:1 price range to increase capital efficiency and reduce slippage costs

This is the "Stableswap" Whitepaper:
https://curve.fi/files/stableswap-paper.pdf

🌀Article Abstract:

Stableswap provides a mechanism to create cross-markets for stablecoins in a way which could be called “Uniswap with leverage”.

Stableswap model:

• has no/very little price slippage for trades in the range

• is great for price related pairs (stablecoins, stETH/ETH, etc.)

• but there is a problem! its still "underutilized" capital in the extremes of the trading range!

In May 2021, Uniswap v3 was launched and improved Uniswap v2 in several aspects.It introduced: "Concentrated liquidity"!

Last model problem was the providing of liquidity across the entire range, leading to: low capital efficiency high slippage large impermanent losses But V3 allows liquidity provision in a "certain price range" chose by user

Uniswap V3 concentrated liquidity pools:

• Increase the return for liquidity providers

• Reduce slippage for traders.

• there is no trading/fees outside the price range

• May require more active position management by LPs

Now that we reviewed three kind of different pools... What if we combined the advantages of all the pools mentioned? This is where the gyroscope E-CLP (Elliptical concentrated liquidity pool) pools come into play!

Let's do some math! If we stretch a circle, then we have an ellipse. If we now rotate our ellipse by Φ and transfer it to the point (a,b), our E-CLP is almost ready!

🌀What is the price range here?

- Price Range is defined by the slope of the ellipse curve where it meets the x / y axis:

🌀What is the Peg Price?
The peg price is the price at the flattest part of the ellipse. The price does not have to be symmetric about the x=y line The slope intersects the x-axis at an angle of Φ in our ellipse The price does not have to lie within the trading range

🌀The price impact of a given trade increases as one moves away from the peg price.

🌀The convexity of the curve increases the further one moves away from the peg price.

Don't let the math confuse you Just know that E-CLP concentrates liquidity where it needs to be!

E-CLP Creates custom liquidity profiles Asymmetric price spreads: Concentration of liquidity e.g. around 1 with price limits of 0.9 and 1.01 LSD/ETH Extremely flexible: E-CLPs can be calibrated to approximate most desired trading curves.

E-CLP lowers operational burden on LPers👇 How?

1. All assets are in a ‘single tick’ with pool-wide price bounds

2. Burden of managing the liquidity is on pool constructors (rather than the LPs)

3. There is no active position management, so there is no "arms race" among LPs

Having all of these characteristics, what are E-CLP use cases? Stablecoin reserve: Gyroscope uses E-CLP for its reserve Liquid staking derivatives Gyroscope has built many LST-based E-CLP pools that maximize both capital efficiency for protocols and rewards for LPers

To give you a tiny example of the capital efficiency of E-CLPs, I recommend reading this tweet from

https://twitter.com/Balancer

This table gives you an overview of liquidity pools and how they compare to Gyroscope E-CLPs:

Now lets have a quick ELI5 recap! Gyroscope tried to develop its stablecoin, but found the lack of an appropriate liquidity pool architecture suitable for stablecoins/LST derivatives to achieve maximum capital efficiency etc;

Therefore, it began building the next generation of liquidity pools, taking advantage of and improving upon the last pool models. The result is something that helps Gyroscope reach more than 20 million TVL without even fully launching!!!

https://x.com/Mrfti_plus/status/1715764257503990178?s=20

Wanna get more involved into Gyroscope ?

Website: https://gyro.finance

Discord: https://discord.gg/aVpykt58

Docs: https://docs.gyro.finance

Github: https://github.com/gyrostable

And don’t forget to follow me on X:

https://twitter.com/Mrfti_plus

Gyroscope revolutionized Maker DAO Peg Stability Mechanism (PSM) to improve its resilience!

Let's discuss in detail!

Gyroscope's Dynamic Stability Mechanism (DSM) is an innovation that consists of four key components:

1⃣ Diversified PSM reserves

2⃣ Programmatic risk control

3⃣ Coordinated PSM strategies

4⃣ Emergency pricing

Now lets investigate into each one!🔍

1. Diversified PSM Reserves:

   A diversified reserve is not depended to a single asset. A well-rounded PSM includes a variety of high-quality assets and reduces overall risk. Don't put all your eggs in one basket!

Gyroscope "all-weather" reserve of assets designed to cover all major known risks that could destabilize the system. This is achieved by storing reserve assets in a series of separate "vaults".

If any of the assets within a particular vault were to fail (i.e., go to zero) or the infrastructure or smart contracts holding the assets in that vault were to be exploited (i.e., hacked), the failure of that individual vault would not affect the entire system!

By spreading risk between vaults in this way, the protocol protects itself from what is known as contagion or composability risk and seeks to eliminate single points of failure in the system.

2.

Programmatic Risk Control:

When a PSM asset drifts from its peg or gets stuck, the entire protocol is at risk. Gyroscope promotes programmable risk control, reducing reliance on governance for updates! (Code is always faster than human!)

I will describe this risk control policy in detail in the next episodes of "Why Gyroscope is a Revolution" series But for now I would like to draw your attention to Gyroscope Founder Ariah:

https://x.com/aklamun/status/1712151343551463458?s=20

3. Coordinated PSM Strategies:

Different static PSMs do not talk to each other Isolated PSMs lead to lost opportunities. A more sophisticated mechanism stays informed about the overall health of all PSM assets and adjusts redemption quotes accordingly.

It is a problem because a good risk control strategy should know the global state of all PSMs to adjust policies accordingly ELI5: We need different PSM strategies for different market conditions! and we call this "dynamic" PSM the Gyroscope Dynamic Stability Mechanism (DSM)

4. Emergency Pricing:

Unforeseen shocks to reserves can trigger a currency run. Rather than depleting reserves, Gyro's Improved PSM skillfully manages reserves through principled monetary policy, giving stablecoin a better chance of survival and stability.

ELI5: We concluded we need different policy for different conditions. One of these conditions which DSM use in crisis is "Emergency pricing" To deepen the topic, let's take a look at the "redemption curve" Note: I'll explain "more" details about this innovation later!

As Steffen explained here, in seigniorage shares, all assets are redeemable at $1 under "all conditions" and they are backed by endogenous assets (like ETH, BTC, etc) In crises, this shares will lose all of their liquidity (as we saw in UST-LUNA, IRON, TITAN, etc)

The main reason for creating the "Redemption curve" is to avoid consuming all the liquidity by changing the redemption price based on the redemption level, which is calculated by many complicated mathematical formulas. You can see the simplified result in the chart below.

and for more details, this is the full youtube video of Steffen lecture:

https://t.co/W5Y6Gc74Wc

Lets have a quick recap: We need a diversified reserve for our PSM (all-weather design) that has specific plans for critical conditions (programmatic risk control) and specialized policies for all market conditions (coordinated PSM strategies) that include emergency pricing.

Gyroscope made "DSM" to achieve:

• Protect reserve ratio

• Maintain GYD peg

• Protect GYD holders

• Reduce quote volatility

• No incentives to group or subdivide transactions

• Slow reserve drawdown

• Support recovery

• Efficient EVM implementation

An interesting note: The idea of DSM (improvement of PSM) was discussed by Gyroscope core team on 2021 in proposals on MakerDao forum:

https://t.co/WWY7aGEdbR

And the points mentioned in this thread about stablecoin risks and solutions were discussed in the article "Stablecoins 2.0" on 2020:

https://t.co/KFffptWorr

You can have all of this article as a X thread here:

https://x.com/Mrfti_plus/status/1715334778294030505?s=20