Merge pull request #2605 from XRPLF/amm-passive-income

Earn Passive Income with AMM

_code-samples/add-amm-lp/js/add-amm-lp.js

@@ -0,0 +1,185 @@
+const xrpl = require('xrpl')
+
+const WS_URL = 'wss://s.altnet.rippletest.net:51233/'
+const EXPLORER = 'testnet.xrpl.org' // Optional, for linking
+
+async function main() {
+
+// Define the network client
+const client = new xrpl.Client(WS_URL)
+await client.connect()
+
+// Get an address funded with XRP from the Faucet
+console.log("Requesting address from the faucet...")
+const wallet = (await client.fundWallet()).wallet
+
+// To use an existing account, use code such as the following:
+// const wallet = xrpl.Wallet.fromSeed(process.env['USE_SEED'])
+
+// Acquire TST tokens
+console.log("------- Acquire TST tokens ---------")
+
+const offer = {
+  "TransactionType": "OfferCreate",
+  "Account": wallet.address,
+  "TakerPays": {
+    currency: "TST",
+    issuer: "rP9jPyP5kyvFRb6ZiRghAGw5u8SGAmU4bd",
+    value: "5"
+  },
+  // Drops calculation is (amount to buy * price per token * amm trading fees)
+  "TakerGets": xrpl.xrpToDrops(58)
+}
+  
+const prepared_offer = await client.autofill(offer)
+console.log("Prepared transaction:", JSON.stringify(prepared_offer, null, 2))
+const signed_offer = wallet.sign(prepared_offer)
+console.log("Sending OfferCreate transaction...")
+const result_offer = await client.submitAndWait(signed_offer.tx_blob)
+console.log(result_offer)
+if (result_offer.result.meta.TransactionResult == "tesSUCCESS") {
+  console.log(`Transaction succeeded:
+    https://${EXPLORER}/transactions/${signed_offer.hash}`)
+} else {
+  throw `Error sending transaction: ${result_offer}`
+}
+
+// Deposit assets into AMM
+console.log("------- Put more assets into the AMM -------")
+  
+const ammdeposit = {
+  "TransactionType": "AMMDeposit",
+  "Asset": {
+    currency: "XRP"
+  },
+  "Asset2": {
+    currency: "TST",
+    issuer: "rP9jPyP5kyvFRb6ZiRghAGw5u8SGAmU4bd"
+  },
+  "Account": wallet.address,
+  // Drops calculation is (amount to deposit * price per token)
+  "Amount": xrpl.xrpToDrops(25),
+  "Amount2": {
+    currency: "TST",
+    issuer: "rP9jPyP5kyvFRb6ZiRghAGw5u8SGAmU4bd",
+    value: "2.5"
+  },
+  "Flags": 0x00100000
+}
+
+const prepared_deposit = await client.autofill(ammdeposit)
+console.log("Prepared transaction:", JSON.stringify(prepared_deposit, null, 2))
+const signed_deposit = wallet.sign(prepared_deposit)
+console.log(`Sending AMMDeposit transaction ...`)
+const lp_deposit = await client.submitAndWait(signed_deposit.tx_blob)
+console.log(lp_deposit)
+
+if (lp_deposit.result.meta.TransactionResult == "tesSUCCESS") {
+  console.log(`Transaction succeeded:
+    https://${EXPLORER}/transactions/${signed_deposit.hash}`)
+} else {
+  throw `Error sending transaction: ${lp_deposit}`
+}
+
+// Vote on fees
+console.log("------- Vote for a 0.6% trading fee -------")
+  
+const ammvote = {
+  "TransactionType": "AMMVote",
+  "Asset": {
+    "currency": "XRP"
+  },
+  "Asset2": {
+    "currency": "TST",
+    "issuer": "rP9jPyP5kyvFRb6ZiRghAGw5u8SGAmU4bd"
+  },
+  "Account": wallet.address,
+  "TradingFee": 600
+}
+
+const prepared_vote = await client.autofill(ammvote)
+console.log("Prepared transaction:", JSON.stringify(prepared_vote, null, 2))
+const signed_vote = wallet.sign(prepared_vote)
+console.log(`Sending AMMVote transaction ...`)
+const response_vote = await client.submitAndWait(signed_vote.tx_blob)
+if (response_vote.result.meta.TransactionResult == "tesSUCCESS") {
+  console.log(`Transaction succeeded:
+    https://${EXPLORER}/transactions/${signed_vote.hash}`)
+} else {
+  console.error("Error sending transaction:", response_vote)
+}
+
+// Get LP tokens value
+console.log("------- Calculate value of my LP tokens -------")
+
+const lp_deposit_data = lp_deposit.result.meta.AffectedNodes
+
+let LPTokens = null;
+
+for (const node of lp_deposit_data) {
+  if (node.CreatedNode) {
+    LPTokens = Math.abs(node.CreatedNode.NewFields.Balance.value);
+    break;
+  }
+}
+
+const amm_info = (await client.request({
+  "command": "amm_info", 
+  "asset": {
+    "currency": "XRP"
+  },
+  "asset2": {
+    "currency": "TST",
+    "issuer": "rP9jPyP5kyvFRb6ZiRghAGw5u8SGAmU4bd"
+  }
+}))
+
+const my_share = LPTokens / amm_info.result.amm.lp_token.value
+
+const my_asset1 = (amm_info.result.amm.amount * my_share) / 1000000
+const my_asset2 = amm_info.result.amm.amount2.value * my_share
+
+console.log(`My ${LPTokens} LP tokens are worth:
+  XRP: ${my_asset1}
+  ${amm_info.result.amm.amount2.currency}: ${my_asset2}`)
+
+// Withdraw by redeeming LP tokens
+console.log("------- Pull some money out of AMM -------")
+  
+const ammwithdraw = {
+  "TransactionType": "AMMWithdraw",
+  "Asset": {
+    "currency": "XRP"
+  },
+  "Asset2": {
+    "currency": "TST",
+    "issuer": "rP9jPyP5kyvFRb6ZiRghAGw5u8SGAmU4bd"
+  },
+  "Account": wallet.address,
+  "LPTokenIn": {
+    currency: "039C99CD9AB0B70B32ECDA51EAAE471625608EA2",
+    issuer: "rhQWjbT5CQJ2fgHKn6FjRrYbGPKmoS3EhD",
+    value: "2940"
+  },
+  "Flags": 0x00010000
+}
+
+const prepared_withdraw = await client.autofill(ammwithdraw)
+console.log("Prepared transaction:", JSON.stringify(prepared_withdraw, null, 2))
+const signed_withdraw = wallet.sign(prepared_withdraw)
+console.log(`Sending AMMWithdraw transaction ...`)
+const response_withdraw = await client.submitAndWait(signed_withdraw.tx_blob)
+
+if (response_withdraw.result.meta.TransactionResult == "tesSUCCESS") {
+  console.log(`Transaction succeeded:
+    https://${EXPLORER}/transactions/${signed_withdraw.hash}`)
+} else {
+  console.error("Error sending transaction:", response_withdraw)
+}
+
+// Disconnect when done (If you omit this, Node.js won't end the process)
+await client.disconnect()
+
+}
+
+main()

_code-samples/add-amm-lp/js/package.json

@@ -0,0 +1,5 @@
+{
+  "dependencies": {
+    "xrpl": "^3.0.0"
+  }
+}

_code-samples/address_encoding/js/package.json

@@ -4,6 +4,6 @@
   "license": "MIT",
   "//": "Change the license to something appropriate. You may want to use 'UNLICENSED' if you are just starting out.",
   "dependencies": {
-    "base-x": "*",
+    "base-x": "*"
   }
 }

docs/tutorials/javascript/trade-on-ledger/earn-passive-income-as-a-liquidity-provider.md

@@ -0,0 +1,68 @@
+---
+seo:
+    description: Provide liquidity for an Automated Market Maker (AMM) and earn income from trading fees.
+labels:
+  - Decentralized Exchange
+  - Tokens
+  - AMM
+---
+# Earn Passive Income as a Liquidity Provider
+
+Providing liquidity for an [Automated Market Maker (AMM)](../../../concepts/tokens/decentralized-exchange/automated-market-makers.md) can be a great way to earn passive income. By depositing assets into an AMM pool, you'll earn a percentage of the trading fees generated. This tutorial shows how to deposit assets, vote on fees, and withdraw assets.
+
+
+## Prerequisites
+
+- You should be familiar with basic usage of the [xrpl.js client library](https://github.com/XRPLF/xrpl.js/). See [Get Started Using JavaScript](../build-apps/get-started.md) for setup steps.
+- The AMM for the asset pair you want to trade must already exist in the ledger. This tutorial uses an AMM on Testnet which has been set up in advance, connecting the following assets:
+
+| Currency Code | Issuer | Notes |
+|---|---|---|
+| XRP | N/A | Testnet XRP is functionally similar to XRP, but holds no real-world value. You can get it for free from a [faucet](/resources/dev-tools/xrp-faucets).
+| TST | `rP9jPyP5kyvFRb6ZiRghAGw5u8SGAmU4bd` | A test token pegged to XRP at a rate of approximately 10 XRP per 1 TST. The issuer has existing Offers on the XRP Ledger Testnet to buy and sell these tokens. This token has no [transfer fee](../../../concepts/tokens/transfer-fees.md) or [Tick Size](../../../concepts/tokens/decentralized-exchange/ticksize.md) set. |
+
+For instructions on creating an AMM for a different currency pair, see [Create an Automated Market Maker](../../how-tos/use-tokens/create-an-automated-market-maker.md).
+
+
+## Source Code
+
+See {% repo-link path="_code-samples/add-amm-lp/js/" %}Code Samples: Add AMM LP{% /repo-link %} for the full source code for this tutorial.
+
+
+## Steps
+
+### 1. Connect to the network and generate credentials
+
+{% code-snippet file="/_code-samples/add-amm-lp/js/add-amm-lp.js" language="js" from="// Define the network client" before="// Acquire TST tokens" /%}
+
+
+### 2. Acquire TST tokens
+
+{% code-snippet file="/_code-samples/add-amm-lp/js/add-amm-lp.js" language="js" from="// Acquire TST tokens" before="// Deposit assets into AMM" /%}
+
+
+### 3. Deposit assets to the AMM
+
+You can contribute either one or both assets to an AMM pool. Contributing just one asset can be easier, but incurs a fee that is debited from the LP Tokens paid out. If you contribute both assets in the pool, you aren't charged a fee.
+
+{% code-snippet file="/_code-samples/add-amm-lp/js/add-amm-lp.js" language="js" from="// Deposit assets into AMM" before="// Vote on fees" /%}
+
+
+### 4. Vote on trading fees
+
+This step is optional, but you're encouraged to submit a vote for a fee structure you believe makes sense.
+
+{% code-snippet file="/_code-samples/add-amm-lp/js/add-amm-lp.js" language="js" from="// Vote on fees" before="// Get LP tokens value" /%}
+
+
+### 5. Wait for your LP Tokens to accrue value
+
+This step is optional, but is useful for checking on your LP token values without withdrawing the assets.
+
+{% code-snippet file="/_code-samples/add-amm-lp/js/add-amm-lp.js" language="js" from="// Get LP tokens value" before="// Withdraw by redeeming LP tokens" /%}
+
+### 6. Withdraw assets from the AMM
+
+Similar to depositing assets, you can withdraw either one or both assets from the AMM pool. Withdrawing a single asset incurs a fee, while withdrawing both does not. When you withdraw by redeeming LP Tokens, you are paid out in both assets.
+
+{% code-snippet file="/_code-samples/add-amm-lp/js/add-amm-lp.js" language="js" from="// Withdraw by redeeming LP tokens" before="// Disconnect when done" /%}

sidebars.yaml

@@ -191,6 +191,7 @@
               expanded: false
               items:
                 - page: docs/tutorials/javascript/trade-on-ledger/use-amm-auction-slot-for-lower-fees.md
+                - page: docs/tutorials/javascript/trade-on-ledger/earn-passive-income-as-a-liquidity-provider.md
         - page: docs/tutorials/python/index.md
           expanded: false
           items: