Chapter 5: SelfPeggingAsset Factory

In Chapter 4: Zap, we saw how to easily add or remove liquidity from an existing SelfPeggingAsset (SPA) Pool using a single transaction. But what if the pool you need doesn’t exist yet? How are new pools, along with their associated LPTokens and WLPTokens, created in the first place?

What Problem Does the Factory Solve?

Imagine you want to open a new currency exchange booth, but instead of just one booth, you want to open many, each specializing in a different pair of currencies (like USD/EUR, or in our case, Token C/Token D). Building each one from scratch would be slow, expensive, and might lead to inconsistencies.

You’d want a standardized process, like a franchise headquarters, that provides blueprints and helps you quickly set up new, identical booths with the right configurations.

The SelfPeggingAsset Factory acts exactly like this franchise headquarters for our digital currency exchange pools. It provides a single, reliable way to deploy and configure a whole new trading ecosystem for a specific pair of tokens.

What is the SelfPeggingAsset Factory?

The SelfPeggingAssetFactory is a smart contract whose only job is to create new instances of other related contracts. Think of it as:

• A Blueprint Generator: It holds the master plans (called “Beacons” in smart contract terms) for how a SelfPeggingAsset pool, an LPToken, a WLPToken, and a RampAController should be built.
• An Assembly Line: When you ask it to create a new pool, it takes your specific requirements (like which tokens to trade, what fees to charge initially) and uses the blueprints to deploy and link together all the necessary contracts automatically.

Specifically, when you use the factory to create a pool for, say, Token C and Token D, it will:

1. Deploy a new LPToken contract specifically for the C/D pool.
2. Deploy a new RampAController to manage the pool’s ‘A’ parameter.
3. Deploy a new SelfPeggingAsset (SPA) pool contract configured to use Token C, Token D, the new LPToken, and the new RampAController.
4. Deploy a new WLPToken contract that wraps the new LPToken.
5. Set initial ownership and permissions correctly.

All of this happens reliably through one interaction with the factory.

How Do I Use It? (Example: Creating a New Pool)

Let’s say you want to create a brand new pool for swapping between two stablecoins, Token C (USDC) and Token D (DAI). You know their contract addresses and they are standard ERC20 tokens.

Your Goal: Create a new SPA Pool ecosystem for USDC/DAI using the factory’s default settings for fees and the ‘A’ parameter.