Wrap Exchange Contract

In this example, we will wrap Trader Joe's Factory contract to execute swap operations on the destination chain. Trader Joe's exchange contracts are already deployed on Fuji, which why we are choosing Fuji as the destination chain.

An example of the exchange wrapper code is provided below. This contract only allows swap operations on Trader Joe V1 pools or any other Uniswap V2-like contracts.

Walkthrough:

The wrapper contract receives the payload via the receiveTokens function.
The wrapper contract transfers the tokens to itself.
The wrapper contract gets a quote from the exchange.
The wrapper contract casts payload into SwapOptions struct.
The wrapper contract checks if the received amountOut is greater than the minAmountOut requested when the contract was called from the source chain.
The wrapper contract executes the swap operation and transfers the received asset to caller, depending on the preferred asset (wrapped token or native token).

Disclaimer: The avalanche-interchain-token-transfer contracts used in this tutorial are under active development and are not yet intended for production deployments. Use at your own risk.

src/interchain-token-transfer/4-send-and-call/DexERC20Wrapper.sol

// (c) 2024, Ava Labs, Inc. All rights reserved.
// See the file LICENSE for licensing terms.
 
// SPDX-License-Identifier: Ecosystem
 
pragma solidity 0.8.18;
 
import {IERC20SendAndCallReceiver} from "../interfaces/IERC20SendAndCallReceiver.sol";
import {SafeERC20TransferFrom} from "../utils/SafeERC20TransferFrom.sol";
import {SafeERC20} from "@openzeppelin/contracts@4.8.1/token/ERC20/utils/SafeERC20.sol";
import {IERC20} from "@openzeppelin/contracts@4.8.1/token/ERC20/IERC20.sol";
import {Context} from "@openzeppelin/contracts@4.8.1/utils/Context.sol";
 
import {IWAVAX} from "./interface/IWAVAX.sol";
import {IUniswapFactory} from "./interface/IUniswapFactory.sol";
import {IUniswapPair} from "./interface/IUniswapPair.sol";
 
/**
 * THIS IS AN EXAMPLE CONTRACT THAT USES UN-AUDITED CODE.
 * DO NOT USE THIS CODE IN PRODUCTION.
 */
 
contract DexERC20Wrapper is Context, IERC20SendAndCallReceiver {
    using SafeERC20 for IERC20;
 
    address public immutable WNATIVE;
    address public immutable factory;
 
    struct SwapOptions {
        address tokenOut;
        uint256 minAmountOut;
    }
 
    constructor(
        address wrappedNativeAddress,
        address dexFactoryAddress
    ) {
        WNATIVE = wrappedNativeAddress;
        factory = dexFactoryAddress;
    }
 
    event TokensReceived(
        bytes32 indexed sourceBlockchainID,
        address indexed originTokenTransferrerAddress,
        address indexed originSenderAddress,
        address token,
        uint256 amount,
        bytes payload
    );
 
    // To receive native when another contract called.
    receive() external payable {}
 
    function getAmountOut(
        uint256 amountIn,
        uint256 reserveIn,
        uint256 reserveOut
    ) internal pure returns (uint256 amountOut) {
        uint256 amountInWithFee = amountIn * 997;
        uint256 numerator = amountInWithFee * reserveOut;
        uint256 denominator = reserveIn * 1e3 + amountInWithFee;
        amountOut = numerator / denominator;
    }
 
    function query(
        uint256 amountIn,
        address tokenIn,
        address tokenOut
    ) internal view returns (uint256 amountOut) {
        if (tokenIn == tokenOut || amountIn == 0) {
            return 0;
        }
        address pair = IUniswapFactory(factory).getPair(tokenIn, tokenOut);
        if (pair == address(0)) {
            return 0;
        }
        (uint256 r0, uint256 r1, ) = IUniswapPair(pair).getReserves();
        (uint256 reserveIn, uint256 reserveOut) = tokenIn < tokenOut ? (r0, r1) : (r1, r0);
        if (reserveIn > 0 && reserveOut > 0) {
            amountOut = getAmountOut(amountIn, reserveIn, reserveOut);
        }
    }
 
    function swap(
        uint256 amountIn,
        uint256 amountOut,
        address tokenIn,
        address tokenOut,
        address to
    ) internal {
        address pair = IUniswapFactory(factory).getPair(tokenIn, tokenOut);
        (uint256 amount0Out, uint256 amount1Out) = (tokenIn < tokenOut)
            ? (uint256(0), amountOut) : (amountOut, uint256(0));
        IERC20(tokenIn).safeTransfer(pair, amountIn);
        IUniswapPair(pair).swap(amount0Out, amount1Out, to, new bytes(0));
    }
 
    function receiveTokens(
        bytes32 sourceBlockchainID,
        address originTokenTransferrerAddress,
        address originSenderAddress,
        address token,
        uint256 amount,
        bytes calldata payload
    ) external {
        emit TokensReceived({
            sourceBlockchainID: sourceBlockchainID,
            originTokenTransferrerAddress: originTokenTransferrerAddress,
            originSenderAddress: originSenderAddress,
            token: token,
            amount: amount,
            payload: payload
        });
 
        require(payload.length > 0, "DexERC20Wrapper: empty payload");
 
        IERC20 _token = IERC20(token);
        // Receives teleported assets to be used for different purposes.
        SafeERC20TransferFrom.safeTransferFrom(_token, _msgSender(), amount);
 
        // Requests a quote from the Uniswap V2-like contract.
        uint256 amountOut = query(amount, token, WNATIVE);
        require(amountOut > 0, "DexERC20Wrapper: insufficient liquidity");
 
        // Parses the payload of the message.
        SwapOptions memory swapOptions = abi.decode(payload, (SwapOptions));
        // Checks if the target swap price is still valid.
        require(amountOut >= swapOptions.minAmountOut, "DexERC20Wrapper: slippage exceeded");
        
        // Verifies if the desired tokenOut is a native or wrapped asset.
        if (swapOptions.tokenOut == address(0)) {
            swap(amount, amountOut, token, WNATIVE, address(this));
            IWAVAX(WNATIVE).withdraw(amountOut);
            payable(originSenderAddress).transfer(amountOut);
        } else {
            swap(amount, amountOut, token, WNATIVE, originSenderAddress);
        }
    }
 
}

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