Balance Aproximation

Metera - Balance Approximation on Deposit and Withdraw Operations

Currently, due to the need to re-balance the portfolio to adjust the weights of assets to match the target weights, we are faced with the limitation of waiting while this balancing is being done to continue executing transactions (e.g., making a deposit or withdraw).

Deposit / Withdraw operation acceptance

The acceptance or rejection of a deposit or withdraw operation relies only on the weights present in the portfolio and the states of the portfolio before and after the operation, more precisely, on the weights of the tokens in the portfolio. We propose to measure the L1 distance between the weights of the current portfolio and the weights indicated by the oracle, and the L1 distance between the weights of the portfolio after the interaction and the weights indicated by the oracle. If the latter valuation is lower, the transaction is accepted.

Examples

Deposit Operation Fails

In this example we can see a deposit operation in which the user submits a set of token1, token2 and token3, in such a way that the balance measures of the portfolio do not meet the acceptance criteria described above as it doesn’t approximate the balance described in the portfolio, therefore the transaction will fail.

Deposit Operation Succeeds

In this example we can see that the balance in the portfolio indeed approximates the balance described by the portfolio

Withdraw Operations

Withdraw operations examples are analogous, since the evaluation of the balance approximation criteria only depends on the portfolio input and outputs states, and not on other inputs/outputs, mint/burn of MTK tokens, etc.

Deposit Function

Users may want to decide how much Ada they want to deposit in the portfolio. We need then to have functionality that supports this input, and calculates an appropriate set of tokens such that the whole input can be added to the portfolio. This of course considers the needed amount of tokens for the portfolio to be balanced, and if there was a remaining amount of user Ada input, then calculate the tokens to add according to the balance required.