Smart Contracts

Sai's perpetual exchange app is implemented in Rust, a powerful language for secure, sandboxed programming, that compiles into Wasm bytecode. 5 key contracts manage everything on Sai, fully onchain.

How Sai the Sai Smart Contracts Work

• perp (Perpetuals trading core):

  • Maintains markets, positions, margin, and liquidations.

  • Calculates execution price with price impact, applies trading/borrowing/funding fees, and updates PnL.

  • Enforces risk constraints (maintenance margin, max leverage, funding payments).

  • Entry points (conceptually): open/close position, modify collateral, place/execute orders, liquidate under-margined positions.

  • Reads prices from oracle, collects/streams fees, and settles PnL against vault.

• EVM interface (PerpVaultEvmInterface.sol):

  • Lets MetaMask/EVM users interact with the Wasm contracts.

  • Handles token conversion and cross-VM calls to perp and vault.

  • Mirrors the essential user flows (deposit, withdraw, open/close) for EVM wallets.

• vault (Liquidity provider pool): Implements SLP Vaults.

  • Aggregates LP liquidity to underwrite trader PnL.

  • Issues and accounts for shares against total assets; supports deposits and epoch-based withdrawals.

  • Absorbs trader PnL: when traders win, the vault pays out; when traders lose, the vault accrues profits.

  • Coordinates with vault-token-minter for share token mint/burn and with perp for settlement transfers.

• oracle (Price feed and permissions):

  • Stores and serves the canonical mark price per market.

  • Controls who can update prices and under what conditions.

  • Provides prices to perp for margin checks, execution, funding, and liquidation thresholds.

• vault-token-minter (Token factory bridge for shares):

  • Controls minting/burning of vault share tokens via Nibiru’s token factory.

  • Enforces whitelist/ownership checks to prevent unauthorized supply changes.

  • Called by vault to mint on deposit and burn on withdrawal/redemption.

Interaction model

1. Liquidity lifecycle

   1. LPs deposit assets into vault → vault mints shares via vault-token-minter.

   2. LPs request withdrawals → vault queues and later exits via epochs, burning shares on completion.

2. Trading lifecycle

   1. Trader requests an action (EVM or Wasm): open/close/modify position in perp.

   2. perp fetches price from oracle, computes price impact, fees, and checks margin/leverage constraints.

   3. perp updates position state, accrues funding/borrowing fees, and computes PnL deltas.

3. Settlement path

   1. Trader losses → profits accrue to vault.

   2. Trader gains → perp sources payout from vault.

4. Funding and price alignment

   1. perp periodically computes funding based on price deltas between mark and index; longs/shorts pay/receive accordingly.

   2. Funding transfers are accounted in positions and net settle via vault over time.

5. Liquidations

   1. If a position’s margin fraction drops below maintenance, perp allows a liquidator to close the position.

   2. perp calculates close price (with impact), applies penalties/fees, and settles PnL with vault.

   3. Any residual collateral after penalties is returned to the trader; bad debt is socialized to vault within configured limits.

Access and safety

1. Ownership/roles restrict sensitive ops: oracle price updates, mint permissions, parameter changes.

2. perp enforces invariants (max leverage, min maintenance, fee bounds).

3. vault enforces epoch rules and share/accounting correctness.

4. Cross-VM calls are designed to avoid re-entrancy and maintain atomic accounting on state-changing operations.

Data and accounting at a glance

• perp state: markets, position records (size, entry price, collateral, accumulated funding/borrowing), pending orders, parameters.

• vault state: total assets, total shares, per-account share balances, withdrawal epochs/queues.

• oracle state: price per market with update metadata.

• vault-token-minter state: mint/burn permissions and token metadata.

Typical end-to-end flows

• Open a long:

  • User calls perp.open_position → perp gets price from oracle, applies price impact and fees, locks collateral, records position.

• Close a long in profit:

  • perp computes PnL at current oracle price (with impact), deducts fees, and transfers profit from vault to user.

• LP exit:

  • User requests withdraw → vault queues for epoch → on execution, vault burns shares via vault-token-minter and releases assets.

• The contracts’ business roles are: perp (trade logic and risk), vault (liquidity and PnL sink/source), oracle (truthful prices), vault-token-minter (controlled share supply), with an EVM facade enabling wallet-native access.

Sai and the EVM

Sai is written as a Multi VM app with contracts written in both Rust and Solidity. This lets the application benefit from the security benefits of working with Wasm while remaining fully capable of tapping into the flexibility and familiarity that comes with the Ethereum Virtual Machine (EVM).