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BiatecCLAMM Integration Guide

This guide provides best practices and security considerations for integrating BiatecCLAMM concentrated liquidity pools into your application or protocol.

Table of Contents​

Quick Start​

Installation​

npm install biatec-concentrated-liquidity-amm

Basic Pool Interaction​

import { clammSwapSender, clammAddLiquiditySender, clammRemoveLiquiditySender } from 'biatec-concentrated-liquidity-amm';

// Swap example
const swapResult = await clammSwapSender({
algod,
sender,
appBiatecClammPool: poolAppId,
appBiatecConfigProvider: configAppId,
appBiatecIdentityProvider: identityAppId,
appBiatecPoolProvider: poolProviderAppId,
assetA: usdcAssetId,
assetB: algoAssetId,
assetIn: usdcAssetId,
amountIn: 1000000n, // 1 USDC (6 decimals)
minimumToReceive: 900000n, // 5% slippage tolerance
});

Security Considerations​

Critical Security Warnings​

⚠️ NEVER use CLAMM VWAP as the sole price source for high-value decisions

The Volume Weighted Average Price (VWAP) can be manipulated by large single-block trades. If your protocol makes financial decisions based on price data, you MUST:

  1. Combine Multiple Sources: Use VWAP from multiple pools
  2. Time-Weight Data: Average prices across multiple periods
  3. Implement Circuit Breakers: Halt operations on large price moves
  4. Use Median Prices: Take median of multiple CLAMM pools
  5. Set Deviation Limits: Reject prices that deviate too far from reference

Price Oracle Anti-Patterns​

❌ DON'T DO THIS:

// DANGEROUS: Using single pool VWAP for liquidations
const price = await getPoolVWAP(poolId);
if (collateralValue < debtValue * price) {
liquidate(user); // Can be manipulated!
}

✅ DO THIS INSTEAD:

// SAFE: Multiple sources with deviation checks
const prices = await Promise.all([getPoolVWAP(poolId1), getPoolVWAP(poolId2), getPoolVWAP(poolId3), getExternalOraclePrice()]);

const medianPrice = getMedian(prices);
const maxDeviation = 0.05; // 5%

for (const price of prices) {
if (Math.abs(price - medianPrice) / medianPrice > maxDeviation) {
throw new Error('Price manipulation detected');
}
}

// Now safe to use medianPrice
if (collateralValue < debtValue * medianPrice) {
liquidate(user);
}

Identity Verification​

All liquidity and swap operations require identity verification. Your integration must:

  1. Check Verification Class: Ensure users meet pool's minimum verification class
  2. Handle Locked Accounts: Gracefully handle ERR-USER-LOCKED errors
  3. Cache Identity Data: Consider caching identity lookups (with expiration)
  4. Provide Clear Errors: Inform users why operations fail (insufficient verification)

Slippage Protection​

⚠️ ALWAYS enforce minimum slippage protection

While the contract allows minimumToReceive = 0, this exposes users to sandwich attacks:

// Minimum recommended slippage protection
const MIN_SLIPPAGE_BPS = 50; // 0.5%

function calculateMinimumReceive(expectedOutput: bigint, slippageBps: bigint): bigint {
const actualSlippage = slippageBps < MIN_SLIPPAGE_BPS ? MIN_SLIPPAGE_BPS : slippageBps;
return (expectedOutput * (10000n - actualSlippage)) / 10000n;
}

Using CLAMM as Price Oracle​

Safe Price Retrieval Pattern​

interface PriceDataPoint {
poolId: number;
price: bigint;
volume: bigint;
timestamp: number;
period: string;
}

class SafePriceOracle {
private readonly minPools = 3;
private readonly maxDeviation = 0.05; // 5%
private readonly timeWindow = 300; // 5 minutes

async getPrice(assetA: bigint, assetB: bigint): Promise<bigint> {
// 1. Get prices from multiple pools
const pools = await this.findPoolsForPair(assetA, assetB);
if (pools.length < this.minPools) {
throw new Error(`Insufficient liquidity sources (${pools.length} < ${this.minPools})`);
}

// 2. Fetch VWAP from each pool
const priceData = await Promise.all(pools.map((pool) => this.getPoolPriceData(pool)));

// 3. Filter recent data only
const cutoff = Date.now() / 1000 - this.timeWindow;
const recentData = priceData.filter((d) => d.timestamp > cutoff);

if (recentData.length < this.minPools) {
throw new Error('Insufficient recent price data');
}

// 4. Calculate median price
const prices = recentData.map((d) => d.price).sort((a, b) => Number(a - b));
const median = prices[Math.floor(prices.length / 2)];

// 5. Check for manipulation (outliers)
for (const data of recentData) {
const deviation = Math.abs(Number(data.price - median)) / Number(median);
if (deviation > this.maxDeviation) {
throw new Error(`Price manipulation detected: ${deviation * 100}% deviation`);
}
}

// 6. Return volume-weighted average of remaining data
let totalValue = 0n;
let totalVolume = 0n;
for (const data of recentData) {
totalValue += data.price * data.volume;
totalVolume += data.volume;
}

return totalValue / totalVolume;
}

private async getPoolPriceData(poolId: number): Promise<PriceDataPoint> {
// Implementation fetches VWAP from pool provider box storage
// See BiatecPoolProvider.algo.ts for box structure
}
}

Price Feed Health Monitoring​

Monitor your price feeds continuously:

interface PriceHealthMetrics {
poolCount: number;
averageSpread: number;
maxDeviation: number;
totalVolume: bigint;
stalestTimestamp: number;
}

async function checkPriceHealth(assetPair: [bigint, bigint]): Promise<PriceHealthMetrics> {
// Check health metrics and alert if:
// - Pool count drops below minimum
// - Spread widens beyond threshold
// - Volume drops significantly
// - Data becomes stale
}

// Run health checks periodically
setInterval(() => {
const health = await checkPriceHealth([usdcId, algoId]);
if (health.poolCount < 3) {
alertOps('Insufficient price sources');
}
if (health.maxDeviation > 0.1) {
alertOps('Price manipulation possible');
}
}, 60000); // Every minute

Transaction Construction​

Required Box References​

When calling CLAMM methods, include these box references:

const boxReferences = [
// Pool statistics box
{ appIndex: poolProviderAppId, name: encodeBoxName('p', poolAppId) },

// Pair statistics box
{ appIndex: poolProviderAppId, name: encodeBoxName('s', assetA, assetB) },

// Identity box
{ appIndex: identityAppId, name: encodeBoxName('i', userAddress) },
];

function encodeBoxName(prefix: string, ...params: (number | string)[]): Uint8Array {
// Helper to encode box names correctly
// See src/boxes/index.ts for reference implementation
}

Transaction Group Patterns​

Simple Swap​

const group = [
// 1. Asset transfer to pool
makeAssetTransferTxn(sender, poolAddress, assetIn, amount),

// 2. Pool swap call (with box references)
makeApplicationCallTxn(sender, poolAppId, 'swap', {
foreignApps: [configAppId, identityAppId, poolProviderAppId],
foreignAssets: [assetA, assetB],
boxes: boxReferences,
}),

// 3. Pool provider NOOP (registers trade)
makeApplicationNoOpTxn(sender, poolProviderAppId),
];

// Assign group ID
algosdk.assignGroupID(group);

Add Liquidity​

const group = [
// 1. Asset A transfer
makeAssetTransferTxn(sender, poolAddress, assetA, amountA),

// 2. Asset B transfer
makeAssetTransferTxn(sender, poolAddress, assetB, amountB),

// 3. LP token opt-in (if needed)
makeAssetTransferTxn(sender, sender, lpToken, 0),

// 4. Add liquidity call
makeApplicationCallTxn(sender, poolAppId, 'addLiquidity', {
foreignApps: [configAppId, identityAppId, poolProviderAppId],
foreignAssets: [assetA, assetB, lpToken],
boxes: boxReferences,
}),
];

Gas (Fee) Estimation​

CLAMM operations can be complex and require adequate fees:

function estimateFees(operationType: 'swap' | 'addLiquidity' | 'removeLiquidity'): number {
const baseFee = 1000; // 0.001 ALGO minimum fee

const opcodeBudgetMultiplier = {
swap: 4, // Swap uses increaseOpcodeBudget() multiple times
addLiquidity: 5, // Complex liquidity math
removeLiquidity: 4,
};

return baseFee * opcodeBudgetMultiplier[operationType];
}

// Usage
const txn = makeApplicationCallTxn(sender, poolId, 'swap', {
fee: estimateFees('swap'),
// ... other params
});

Common Integration Patterns​

DEX Aggregator Integration​

interface PoolQuote {
poolId: number;
inputAmount: bigint;
outputAmount: bigint;
priceImpact: number;
route: [bigint, bigint][];
}

class DEXAggregator {
async getBestQuote(assetIn: bigint, assetOut: bigint, amountIn: bigint): Promise<PoolQuote> {
// 1. Find all relevant pools
const directPools = await this.findPools(assetIn, assetOut);
const multiHopRoutes = await this.findMultiHopRoutes(assetIn, assetOut);

// 2. Get quotes from each
const quotes = await Promise.all([...directPools.map((p) => this.getPoolQuote(p, amountIn)), ...multiHopRoutes.map((r) => this.getRouteQuote(r, amountIn))]);

// 3. Return best quote by output amount
return quotes.sort((a, b) => Number(b.outputAmount - a.outputAmount))[0];
}

async executeSwap(quote: PoolQuote): Promise<string> {
// Execute the swap with proper slippage protection
const minOutput = this.applySlippage(quote.outputAmount, 0.5); // 0.5%

if (quote.route.length === 1) {
// Direct swap
return await this.directSwap(quote, minOutput);
} else {
// Multi-hop requires atomic composition
return await this.multiHopSwap(quote, minOutput);
}
}
}

Lending Protocol Integration​

interface CollateralPosition {
user: string;
collateralAsset: bigint;
collateralAmount: bigint;
debtAsset: bigint;
debtAmount: bigint;
healthFactor: number;
}

class LendingProtocol {
private priceOracle: SafePriceOracle;

async checkLiquidation(position: CollateralPosition): Promise<boolean> {
// Get safe price with manipulation protection
const collateralPrice = await this.priceOracle.getPrice(
position.collateralAsset,
0n // ALGO
);
const debtPrice = await this.priceOracle.getPrice(position.debtAsset, 0n);

// Calculate health factor with safety margins
const collateralValue = position.collateralAmount * collateralPrice;
const debtValue = position.debtAmount * debtPrice;
const liquidationThreshold = 1.2; // 120% collateralization

const healthFactor = Number(collateralValue) / Number(debtValue);

return healthFactor < liquidationThreshold;
}

async liquidate(position: CollateralPosition): Promise<string> {
// 1. Verify liquidation is valid
if (!(await this.checkLiquidation(position))) {
throw new Error('Position is healthy');
}

// 2. Calculate liquidation bonus (incentive for liquidators)
const liquidationBonus = 1.05; // 5% bonus

// 3. Swap collateral for debt via CLAMM
const swapAmount = position.debtAmount * liquidationBonus;

return await clammSwapSender({
// Swap collateral to debt token
assetIn: position.collateralAsset,
amountIn: swapAmount,
minimumToReceive: position.debtAmount, // Exact debt repayment
// ... other params
});
}
}

Yield Aggregator Integration​

interface YieldStrategy {
poolId: number;
apy: number;
tvl: bigint;
risk: 'low' | 'medium' | 'high';
}

class YieldAggregator {
async findBestYield(asset: bigint): Promise<YieldStrategy> {
// Find B-{TOKEN} staking pools for the asset
const stakingPools = await this.findStakingPools(asset);

// Calculate APY for each (based on recent reward distributions)
const strategies = await Promise.all(
stakingPools.map(async (pool) => ({
poolId: pool.id,
apy: await this.calculateAPY(pool),
tvl: await this.getTVL(pool),
risk: this.assessRisk(pool),
}))
);

// Filter by minimum TVL and risk tolerance
const safeStrategies = strategies.filter((s) => s.tvl > 100000n && s.risk !== 'high');

// Return highest APY
return safeStrategies.sort((a, b) => b.apy - a.apy)[0];
}

async deposit(strategy: YieldStrategy, amount: bigint): Promise<string> {
// Add liquidity to staking pool (B-{TOKEN})
return await clammAddLiquiditySender({
appBiatecClammPool: strategy.poolId,
amountA: amount,
amountB: amount, // Same asset for staking pools
// ... other params
});
}
}

Error Handling​

Comprehensive Error Handling​

async function safeSwap(params: SwapParams): Promise<SwapResult> {
try {
return await clammSwapSender(params);
} catch (error) {
// Parse error message
const errorMsg = error.message || '';

if (errorMsg.includes('ERR-LOW-VER')) {
throw new UserError('Insufficient identity verification. Please complete KYC.');
}

if (errorMsg.includes('ERR-USER-LOCKED')) {
throw new UserError('Your account is locked. Contact support.');
}

if (errorMsg.includes('Minimum to receive is not met')) {
throw new UserError('Price moved unfavorably. Try increasing slippage tolerance.');
}

if (errorMsg.includes('E_PAUSED')) {
throw new UserError('Protocol is currently paused. Try again later.');
}

if (errorMsg.includes('E_ZERO_LIQ')) {
throw new UserError('Pool has insufficient liquidity.');
}

// Unknown error - log for debugging
console.error('Unexpected swap error:', error);
throw new Error('Swap failed. Please try again or contact support.');
}
}

class UserError extends Error {
constructor(message: string) {
super(message);
this.name = 'UserError';
}
}

Retry Logic​

async function swapWithRetry(params: SwapParams, maxRetries: number = 3): Promise<SwapResult> {
let lastError: Error;

for (let attempt = 1; attempt <= maxRetries; attempt++) {
try {
return await safeSwap(params);
} catch (error) {
lastError = error;

// Don't retry user errors
if (error instanceof UserError) {
throw error;
}

// Don't retry on final attempt
if (attempt === maxRetries) {
break;
}

// Exponential backoff
const delay = Math.min(1000 * Math.pow(2, attempt - 1), 10000);
await sleep(delay);

console.log(`Swap attempt ${attempt} failed, retrying in ${delay}ms...`);
}
}

throw new Error(`Swap failed after ${maxRetries} attempts: ${lastError.message}`);
}

Testing Your Integration​

Unit Tests​

describe('CLAMM Integration', () => {
it('should handle slippage correctly', async () => {
const quote = await getSwapQuote(usdcId, algoId, 1000000n);
const minOutput = calculateMinimumReceive(quote.output, 50n); // 0.5%

const result = await clammSwapSender({
// ... params
minimumToReceive: minOutput,
});

expect(result.amountOut).toBeGreaterThanOrEqual(minOutput);
});

it('should reject insufficient verification', async () => {
// Mock user with low verification class
await expect(clammSwapSender(/* params with low-ver user */)).rejects.toThrow('ERR-LOW-VER');
});

it('should handle price manipulation', async () => {
const prices = [
100n,
101n,
102n,
150n, // Outlier
];

await expect(validatePrices(prices)).rejects.toThrow('Price manipulation detected');
});
});

Integration Tests​

Test against Algorand sandbox:

# Start sandbox
algokit localnet start

# Run integration tests
npm run test:integration

Security Testing​

  1. Price Manipulation Tests: Attempt large swaps and verify VWAP changes are detected
  2. Slippage Tests: Test with zero and insufficient slippage protection
  3. Identity Tests: Test with locked accounts and insufficient verification
  4. Pause Tests: Verify operations fail when protocol is paused
  5. Overflow Tests: Test with maximum uint64 values

Best Practices Checklist​

Before deploying your integration:

  • Use multiple price sources, never single pool VWAP
  • Implement circuit breakers for price anomalies
  • Enforce minimum slippage protection (≥0.5%)
  • Handle all error codes gracefully
  • Implement retry logic with exponential backoff
  • Include all required box references
  • Test on testnet extensively
  • Monitor price feed health continuously
  • Document your integration for auditors
  • Have incident response plan for price manipulation
  • Use multi-sig for admin operations
  • Regular security reviews of your integration
  • Load test with realistic volume
  • Verify fee estimation is adequate

Security Audit References​

Multiple security audits have been conducted on BiatecCLAMM. Review these before integrating:

  • audits/2025-10-27-audit-report-ai-claude-3-5.md - Comprehensive security analysis
  • audits/2025-10-27-audit-report-ai-gpt5-codex.md - Oracle manipulation concerns
  • audits/2025-10-27-audit-report-ai-gemini-2-5-pro.md - VWAP vulnerabilities

Key takeaways for integrators:

  • VWAP can be manipulated in single blocks
  • Always use multiple price sources
  • Implement circuit breakers
  • Test extensively before mainnet

Support and Resources​

  • GitHub: https://github.com/scholtz/BiatecCLAMM
  • Documentation: See docs/ folder for detailed guides
  • Error Codes: docs/error-codes.md for complete reference
  • Security: audits/ folder for audit reports
  • Examples: __test__/ for usage examples

Last Updated: 2025-10-27 Version: 1.0 Maintained By: BiatecCLAMM Team