ft-cip-113

This repository contains the code for a programmable token DEX integration using CIP-113 tokens. It implements a standard interface to manage the lifecycle and functionality of these programmable tokens while ensuring compatibility with the Cardano blockchain architecture.

Overview

What is CIP-113?

CIP-113 introduces a specification for programmable tokens on the Cardano blockchain. These tokens behave like native assets but remain forever locked inside smart contracts. This design ensures programmability while avoiding risks such as unintentionally locking non-programmable native tokens. CIP-113 tokens enable advanced functionality, such as:

• Optional Blacklisting & Whitelisting: Add or restrict access to specific users or contracts.
• Pause All Transfers: A global switch to halt token activity.
• Custom User States: Define specific rules or attributes for each user.
• Programmable Spending Conditions: Set custom logic for using tokens.
• Seamless DeFi Integration: Allow CIP-113 tokens to interact with other dApps and native assets.

By enforcing these features, CIP-113 tokens provide the flexibility needed for advanced DeFi protocols while maintaining compatibility with the Cardano UTXO model.

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How Does It Work?

CIP-113 defines several validators and state management techniques to enforce programmability while maintaining efficiency:

• Merkle Trees manage global states like blacklists/whitelists off-chain, keeping on-chain data minimal.
• Validators manage specific token lifecycle events and interactions, such as minting, transferring, and spending.
• Withdraw 0 Trick: Ensures secure validation of CIP-113 token transfers without requiring predefined datums.

The repository is divided into two main parts:

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1. DEX Validators (dexValidators folder)

This module manages the interaction of CIP-113 tokens within the decentralized exchange (DEX). Key features include:

• Order Management:
  • Create Orders: Users define token swap requests.
  • Submit Orders: Execute token swaps securely.
  • Cancel Orders: Remove pending orders.
• Swap Logic: Executes token swaps while ensuring compliance with CIP-113 token rules and programmability.

These validators enforce the logic for seamless DEX integration of CIP-113 tokens alongside native assets.

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2. Token Validators (validators folder)

This module contains the logic to enforce the lifecycle and programmability of CIP-113 tokens. Key features include:

• Lifecycle Management:
  • Minting: Issue tokens while ensuring compliance with CIP-113 specifications.
  • Burning: Remove tokens from circulation as required.
  • State Updates: Adjust token states (e.g., pause, blacklist) dynamically.
• Validator Functions:
  • Hub Spend: Centralized state management for CIP-113 tokens.
  • Account Management: Manage global states like transfer pauses and blacklists/whitelists.
  • Transfer Logic: Ensure CIP-113 tokens remain within their designated smart contract environments.

These validators guarantee that CIP-113 tokens adhere to their programmable standards throughout their lifecycle.

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CIP-113 Features in Practice

1. Programmable Logic:

   • Use CIP-113 tokens like native assets, but with added programmability.
   • Define custom spending conditions to meet protocol-specific requirements.

2. Secure State Management:

   • Implement blacklisting/whitelisting and pausing transfers using merkle trees to track global states.

3. Interoperability:

   • Support seamless integration with other DeFi protocols and native tokens.

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How to Use

1. Clone the Repository:

   git clone https://github.com/fluidtokens/ft-cip-113.git
   cd ft-cip-113

2. Explore the Modules:

   • Navigate to the dexValidators folder for DEX-specific functionality.
   • Navigate to the validators folder for token lifecycle and programmability logic.

3. Deploy Validators:

   • Use Plutus, Cardano CLI, or your preferred smart contract deployment toolset.

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Contribution

We welcome contributions to improve the repository. Feel free to:

• Submit issues or feature requests.
• Open pull requests with proposed changes.
• For significant modifications, please open an issue to discuss your ideas.

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License

This project is licensed under the MIT License. See the LICENSE file for details.

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By incorporating the principles and specifications of CIP-113, this repository enables seamless integration of programmable tokens into decentralized exchanges, paving the way for more advanced and flexible DeFi protocols on Cardano.