Liquidity and swap for concentrated liquidity pool

In this guide, We'll make use of periphery contracts from v4-periphery

Liquidity operations with NonFungiblePositionManager
Swaps via CLSwapRouter

Liquidity operations

Mint

Create a new position wrapped in a NFT. If you have minted previously, consider increaseLiquidity() to add liquidity to the same NFT tokenId.

INonfungiblePositionManager.MintParams memory params = INonfungiblePositionManager.MintParams({
  poolKey: key,
  tickLower: tickLower,
  tickUpper: tickUpper,
  amount0Desired: amount0,
  amount1Desired: amount1,
  amount0Min: 0,
  amount1Min: 0,
  recipient: address(this),
  deadline: block.timestamp
});
 
(uint256 tokenId, uint128 liquidity, uint256 amount0, uint256 amount1)
    = nfp.mint(params);

Input:

poolKey: struct which identify the pool
tickLower | tickUpper: add liquidity from tickLower to tickUpper
amount0Desired | amount1Desired: intended amt0 and amt1
amount0Min | amount1Min: minimum amt0 and amt1. transaction will revert if the amount is less than that. In the real-world, set a realistic amount instead of 0.
recipient: who to receive the NFT which represent ownership of this position
deadline: deadline of this transaction. transaction will revert if block.timestamp is greater than deadline

Output:

tokenId: NFT tokenId minted
liquidity: total liquidity minted
amount0: amount for token0 taken for minting
amount1: amount for token1 taken for minting

Decrease liquidity

Decreases the amount of liquidity in a position and accounts it to the position

INonfungiblePositionManager.DecreaseLiquidityParams memory params = INonfungiblePositionManager
  .DecreaseLiquidityParams({
    tokenId: tokenId,
    liquidity: liquidity,
    amount0Min: 0,
    amount1Min: 0,
    deadline: type(uint256).max
});
 
(uint256 amount0, uint256 amount1) = nfp.decreaseLiquidity(params);

Input:

tokenId: the NFT tokenId, received when called .mint() earlier
liquidity: amount of liquidity to remove
amount0Min | amount1Min: minimum amt0 and amt1, transaction will revert if the amount is less than that
deadline: deadline of this transaction. transaction will revert if block.timestamp is greater than deadline

Output:

amount0: amount for token0 received for decreasing liquidity
amount1: amount for token1 received for decreasing liquidity

Increase liquidity

Increases the amount of liquidity in a position, with tokens paid by the msg.sender

INonfungiblePositionManager.IncreaseLiquidityParams memory params = INonfungiblePositionManager
  .IncreaseLiquidityParams({
    tokenId: tokenId,
    amount0Desired: amount0,
    amount1Desired: amount1,
    amount0Min: 0,
    amount1Min: 0,
    deadline: block.timestamp
});
 
(uint128 liquidity, uint256 amount0, uint256 amount1) = nfp.increaseLiquidity(params);

Input:

tokenId: the NFT tokenId, received when called .mint() earlier
amount0Desired | amount1Desired: intended amt0 and amt1
amount0Min | amount1Min: minimum amt0 and amt1, transaction will revert if the amount is less than that
deadline: deadline of this transaction. transaction will revert if block.timestamp is greater than deadline

Output:

liquidity: amount of liquidity added
amount0: amount for token0 taken for increasing liquidity
amount1: amount for token1 taken for increasing liquidity

Burn

Burns a token ID, which deletes it from the NFT contract. The token must have 0 liquidity and all tokens

nfp.burn(uint256 tokenId);

Swaps

CLSwapRouter

Exact Input Single

Swaps amountIn of one token for as much as possible of another token

ICLSwapRouterBase.V4CLExactInputSingleParams memory params = ICLSwapRouterBase
  .V4CLExactInputSingleParams({
    poolKey: key1,
    zeroForOne: true,
    recipient: address(this),
    amountIn: 1 ether,
    amountOutMinimum: 0,
    sqrtPriceLimitX96: 0,
    hookData: new bytes(0)
});
 
uint256 amtOut = router.exactInputSingle(params, block.timestamp);

Input:

poolKey: struct which identify the pool
zeroForOne: if true swap token0 for token1, else swap token1 for token0
recipient: address to receive the output token
amountIn: desired amount in
amountOutMinimum: min amount out. transaction revert if amount out is lesser
sqrtPriceLimitX96: limit for the price the swap will push the pool to. this help to reduce slippage.
hookData: if set, will be passed to hooks in both beforeSwap and afterSwap
deadline: deadline of this transaction. transaction will revert if block.timestamp is greater than deadline

Output:

amountOut: amount of token out from the swap

Exact Input

Swaps amountIn of one token for as much as possible of another along the specified path

bytes32 params;
 
ISwapRouterBase.PathKey[] memory path = new ISwapRouterBase.PathKey[](2);
path[0] = ISwapRouterBase.PathKey({
  intermediateCurrency: currency1,
  fee: uint24(3000),
  hooks: IHooks(address(0)),
  hookData: new bytes(0),
  poolManager: poolManager,
  parameters: params.setTickSpacing(10)
});
 
path[1] = ISwapRouterBase.PathKey({
  intermediateCurrency: currency2,
  fee: uint24(3000),
  hooks: IHooks(address(0)),
  hookData: new bytes(0),
  poolManager: poolManager,
  parameters: params.setTickSpacing(10)
});
 
ICLSwapRouterBase.V4CLExactInputParams memory input = ICLSwapRouterBase
  .V4CLExactInputParams({
    currencyIn: currency0,
    path: path,
    recipient: address(this),
    amountIn: 1 ether,
    amountOutMinimum: 0
});
 
uint256 amountOut = router.exactInput(input, block.timestamp);

Input:

currencyIn: input token
path: Array of PathKey[] which describe the pool to hop
recipient: address to receive the output token
amountIn: desired amount in
amountOutMinimum: min amount out. transaction revert if amount out is lesser
deadline: deadline of this transaction. transaction will revert if block.timestamp is greater than deadline

Output:

amountOut: amount of token out from the swap

Exact Output Single

Swaps as little as possible of one token for amountOut of another token

ICLSwapRouterBase.V4CLExactOutputSingleParams memory input = ICLSwapRouterBase
  .V4CLExactOutputSingleParams({
    poolKey: key1,
    zeroForOne: false,
    recipient: address(this),
    amountOut: 1 ether,
    amountInMaximum: 1.1 ether,
    sqrtPriceLimitX96: 0,
    hookData: new bytes(0)
});
 
uint256 amountIn = router.exactOutputSingle

Input:

poolKey: struct which identify the pool
zeroForOne: if true swap token0 for token1, else swap token1 for token0
recipient: address to receive the output token
amountOut: desired amount out
amountInMaximum: max amount in. transaction revert if amount out is lesser
sqrtPriceLimitX96: limit for the price the swap will push the pool to. this help to reduce slippage.
hookData: if set, will be passed to hooks in both beforeSwap and afterSwap
deadline: deadline of this transaction. transaction will revert if block.timestamp is greater than deadline

Output:

amountIn: amount of token in from the swap

Exact Output

Swaps as little as possible of one token for amountOut of another along the specified path (reversed)

 
bytes32 params;
 
ISwapRouterBase.PathKey[] memory path = new ISwapRouterBase.PathKey[](2);
path[0] = ISwapRouterBase.PathKey({
  intermediateCurrency: currency0,
  fee: uint24(3000),
  hooks: IHooks(address(0)),
  hookData: new bytes(0),
  poolManager: poolManager,
  parameters: params.setTickSpacing(10)
});
 
path[1] = ISwapRouterBase.PathKey({
  intermediateCurrency: currency1,
  fee: uint24(3000),
  hooks: IHooks(address(0)),
  hookData: new bytes(0),
  poolManager: poolManager,
  parameters: params.setTickSpacing(10)
});
 
ICLSwapRouterBase.V4CLExactOutputParams memory input = ICLSwapRouterBase
  .V4CLExactOutputParams({
    currencyOut: currency2,
    path: path,
    recipient: address(this),
    amountOut: 1 ether,
    amountInMaximum: 1.1 ether
});
 
uint256 amountIn = router.exactOutput(input, block.timestamp);

Input:

currencyOut: output token
path: Array of PathKey[] which describe the pool to hop
recipient: address to receive the output token
amountOut: desired amount out
amountInMaximum: max amount out. transaction revert if amountIn required is more.
deadline: deadline of this transaction. transaction will revert if block.timestamp is greater than deadline

Output:

amountIn: amount of token in from the swap