PRISM

Liquidity Management Protocol on Uniswap V4 — a permissionless, automated LM protocol that refracts a single LP deposit into N tick-range positions, rebalances atomically via flash accounting, charges volatility-adaptive swap fees, and captures MEV that would otherwise leak to external arbitrageurs.

Overview

PRISM wraps a Uniswap V4 pool in a vault that refracts LP capital across a configurable spectrum of tick-range positions. Where V3-era LM (Gamma, Arrakis) smoothed day-to-day LP work but remained bottlenecked by centralized advisors, PRISM uses V4's hook primitive and EIP-1153 flash accounting to push the entire management loop on-chain:

• Deposit once → liquidity distributed across N ticks via a pluggable strategy
• Rebalance atomically → all positions remove + redeploy inside a single PoolManager.unlock()
• Volatility-adaptive swap fees via the beforeSwap hook
• MEV observation / capture via the afterSwap hook
• Custody-free — no admin keys on user funds; rebalances are keeper-triggered

Key Features

• Refraction. One deposit → N positions via a pluggable IStrategy (Bell, Exponential, OrderBook).
• Atomic rebalance. N positions touched, one token transfer per asset via flash accounting.
• Dynamic fees. EWMA-volatility-adaptive, computed in beforeSwap.
• Immutable core. No upgrade proxies; governance is not attack surface.
• Withdrawals never pausable. Deposits can be paused (48h timelock); withdraw always works.
• Composable ERC-20 shares. No transfer hooks, no share-level fees.
• On-chain invariants. Seven formal invariants enforced by Foundry invariant tests.

Architecture

PRISM is organized into four layers:

USER LAYER LPs · Swappers · Keepers
PRESENTATION Next.js 14 dApp + wagmi v2 + viem v2 + RainbowKit
PROTOCOL VaultFactory → Vault → Strategy + ProtocolHook + ChainlinkAdapter
UNISWAP V4 PoolManager (singleton) → Pool (dynamic fee + hook)
OFF-CHAIN INFRA TypeScript keeper · Tenderly · Sentry

Core contracts:

Contract	Role
Vault	ERC-20 shares + multi-position aggregator. Owns liquidity inside PoolManager.
VaultFactory	CREATE2 deploy of vaults per (PoolKey, Strategy).
ProtocolHook	V4 hook — dynamic fees in beforeSwap, MEV observation in afterSwap.
BellStrategy	Default strategy — bell-curve weight distribution. Pure, stateless, deterministic.
ChainlinkAdapter	Primary oracle with staleness gate.

Architectural context, seven invariants, gas targets, and risk posture: CLAUDE.md. Full spec: PRISM_PRD_v1.0.html.

Development Phases

PRISM ships in six architectural milestones (M0 → M5). Each milestone is independently demoable — no milestone depends on unfinished work from the next. Every phase maps to GitHub milestones and the issue backlog.

M0 · Foundations

Everything else is blocked on M0. Ship this and every downstream track parallelizes.

• Monorepo + Foundry workspace; v4-core / v4-periphery pinned by commit
• Core interfaces: IVault, IStrategy, IProtocolHook
• Utilities: Errors.sol, ReentrancyGuardTransient.sol, PositionLib, FeeLib, MEVLib, HookMiner
• Design tokens + shadcn-aligned component library (Figma)
• ADRs: hook scoping, oracle strategy, immutable core, strategy purity, flash accounting pattern, gas budget
• Next.js 14 scaffold + wagmi v2 + RainbowKit (Base Sepolia)
• CI: contracts workflow (Foundry + Slither + Aderyn); web + keeper workflows

M1 · Vault Core

Single-position vault that accepts deposits, issues shares, and honors withdrawals.

• Vault storage layout + ERC-20 share accounting
• deposit() via PoolManager.unlock with slippage bounds
• withdraw() with proportional removal across positions — never pausable
• MIN_SHARES = 1000 burned to DEAD on first deposit (inflation-attack mitigation)
• Views: getPositions, getTotalAmounts, sharePrice, TVL cap enforcement
• Unit tests: happy path, reverts, access control, reentrancy probes

M2 · Strategy System

Multi-position vault with bell-shaped liquidity and atomic rebalance.

• BellStrategy.computePositions — pure, deterministic, Gaussian weight distribution
• BellStrategy.shouldRebalance — tick-drift + time threshold + 24h keeper-liveness fallback
• Vault.rebalance — remove-all → optional internal swap (slippage-bounded) → redeploy in one unlock
• VaultFactory with CREATE2 deployment per (PoolKey, Strategy)
• Fuzz tests: weight-sum invariant (#2), tick-boundary edges, MAX_POSITIONS

M3 · V4 Hook

Hook-native pool with dynamic fees and MEV observation.

• ProtocolHook with getHookPermissions + address-bit assertions + onlyPoolManager
• beforeSwap — EWMA volatility update + dynamic fee override (≤ 12k gas)
• afterSwap — oracle read + deviation check + SwapObserved event (v1.0 observation only)
• ChainlinkAdapter — primary feed with staleness gate (> 1h disables capture)
• Fuzz: hook permission bits, onlyPoolManager spoof attempts, gas-budget assertions

M4 · Integration

End-to-end user flow — wallet → deposit → observe keeper rebalances → withdraw.

• dApp: vault list, vault detail with PrismVisual, deposit + withdraw forms
• Shared package: generated ABIs, per-chain addresses, shared types
• Keeper bot: poll loop + eth_call simulation gate + tx submission + structured logs
• Invariant suite: all seven PRISM invariants under Foundry fuzz
• Fork tests: Base Sepolia PoolManager integration (deposit → rebalance → withdraw)
• Playwright E2E: happy path + error paths (wrong network, insufficient balance, tx rejection)

M5 · Launch

Public Base Sepolia testnet — monitored, documented, ready for external LPs.

• Deploy.s.sol — full wiring; hook-address mining; pool initialization
• Basescan verification + post-deploy hook-address sanity check
• Keeper deployed to Fly.io with /health endpoint + graceful SIGTERM shutdown
• Marketing landing page + dApp on Vercel
• Monitoring: Tenderly alert rules + Sentry (frontend + keeper) + incident runbook
• Docs: README, CONTRIBUTING, SECURITY

Current status: M0 · Foundations (in progress).

Tech Stack

Concern	Tool
Smart contracts	Solidity 0.8.26, Foundry (via_ir, cancun)
V4 dependencies	v4-core, v4-periphery (pinned by commit)
Token utilities	Solmate / Solady
Static analysis	Slither + Aderyn
Frontend	Next.js 14 App Router, TypeScript (strict), Tailwind, shadcn/ui
Web3	wagmi v2 + viem v2 + RainbowKit v2
Keeper	TypeScript + viem (single-file, poll + simulate + submit)
Monorepo	pnpm + Turborepo
Deploy	Vercel (web) + Fly.io (keeper)
Monitoring	Tenderly + Sentry

V4 Dependency Pins

v4-core, v4-periphery, and permit2 are pinned by commit SHA in .gitmodules. Do not bump during the MVP (PRD §Day 1 anti-goal).

Submodule	SHA	Date	Version
v4-core	59d3ecf53afa9264a16bba0e38f4c5d2231f80bc	2025-05-13	1.0.2 (post-v4.0.0)
v4-periphery	9dafaaecc1e2e1e824eda9d941085f96517d827b	2026-04-02	main HEAD at pinning
permit2	cc56ad0f3439c502c246fc5cfcc3db92bb8b7219	—	transitive dep of v4-periphery

Remappings (packages/contracts/remappings.txt):

v4-core/=lib/v4-core/src/
v4-periphery/=lib/v4-periphery/src/
permit2/=lib/permit2/src/

Reason-to-bump policy

Bumping v4 submodules during the MVP is an anti-goal. Bump only when ALL of:

1. A security fix is released and documented by Uniswap.
2. An API required by the PRD is missing from the pinned version.
3. The bump is reviewed via commit diff, compiled against the full test suite, and approved in a dedicated ADR commit.

Pinned: 2026-04-23.

Quick Start

# Clone
git clone https://github.com/ozpool/prism.git
cd prism
# Install
pnpm install
# Contractscd packages/contracts
forge build
forge test -vvv
# Web dAppcd ../../apps/web
pnpm dev
# http://localhost:3000# Keepercd ../keeper
cp .env.example .env # fill in Base Sepolia RPC + private key
pnpm dev

Prerequisites: Node ≥ 18, pnpm ≥ 9, Foundry latest, a Base Sepolia RPC URL.

Repository Structure

prism/
├── apps/
│ ├── web/ Next.js 14 dApp + marketing
│ └── keeper/ TypeScript + viem keeper bot
├── packages/
│ ├── contracts/ Foundry project (Solidity 0.8.26)
│ │ ├── src/{core,strategies,libraries,oracles,interfaces,utils}
│ │ ├── test/{unit, fuzz, invariants}
│ │ └── script/Deploy.s.sol
│ └── shared/ Auto-generated ABIs, per-chain addresses, shared types
├── scripts/ ABI export, hook-address verification
├── .github/workflows/ CI pipelines
├── CLAUDE.md Project architectural context
├── PRISM_PRD_v1.0.html Full product requirements
└── README.md (this file)

Testing & Quality Gates

Before any commit or PR:

# Contracts
forge build
forge fmt --check
forge test -vvv
slither . --config-file slither.config.json
aderyn .# Web / Keeper
pnpm typecheck
pnpm lint
pnpm test
pnpm playwright test# E2E (web only)

CI enforces these on every PR.

Networks

Network	Chain ID	Status
Base Sepolia	84532	Primary testnet (M5 launch target)
Base mainnet	8453	Post-audit, capped soft-launch (not in v1)

Contributing

• Branch from main; never amend published commits; never force-push shared branches
• Conventional commits: feat(vault): ..., fix(hook): ..., test(strategy): ...
• Tests must pass locally before opening a PR
• Security-sensitive changes (Vault / Hook / Strategy / Oracle) require a security-auditor review before merge

Full contributor guide lives in CONTRIBUTING.md (forthcoming, tracked in issue #70). Responsible disclosure lives in SECURITY.md (issue #71).

License

• Core contracts: BUSL-1.1
• Libraries: MIT

PRD Section Map

If you're trying to understand a specific subsystem, jump straight to the relevant section of the PRD rather than reading top-to-bottom:

Topic	PRD section
Product positioning, who PRISM is for	§1 Vision
Seven invariants (the contract-level laws)	§2 Invariants
Vault, Strategy, Hook, Oracle architecture	§3 System Architecture
Swap-time hook flow + fee math	§4 Hook Behaviour
Rebalance flow + slippage bounds	§5 Rebalance
Threat model + first-depositor inflation	§6 Security
Gas budgets + keeper economics	§7 Economics (ADR-007)
Migration playbook (no proxies)	§8 Operations (ADR-006)
Off-chain infra: keeper, monitoring	§9 Off-chain
Day-1 anti-goals and scope discipline	§10 Anti-goals

Architecture decisions live in docs/adrs/. Each ADR is versioned, dated, and referenced by the implementation issue that locked it in.

Links

• Product Requirements Document (v1.0) — complete technical spec
• Architectural context — invariants, risk posture, delegation map
• Architecture Decision Records — locked design decisions with rationale
• Open issues — backlog by milestone and layer
• Project milestones — M0 → M5

---

PRISM — liquidity refracted.