What is the most efficient way of coding a compounding inflationary function for an ERC-20 token?

Question

I'm programming an inflate() function for an inflationary token.

Currently using a very inefficient for loop. What is a better way? Should I assembly or maybe exponents? Code & links to relevant contracts appreciated!

Current code:

    uint last =      // the last time inflation was calculated
uint frequency = // frequency (seconds) to compound inflation

uint inflation = // amount to inflate per frequency

uint multiple =  // what [inflation] was multiplied by to make it a whole number

uint current = block.timestamp;

uint intervals = (current - last) /  frequency; 

uint newInflation = totalSupply;

for (uint i; i &lt; intervals; ++i) {
    newInflation += newInflation * inflation / multiple;
}

newInflation -= totalSupply;

Thankyou @PaulRazvanBerg — definitely needed a fixed-point math library! — Ryan Sea, Aug 16 '22 at 03:19

Markus Schick · Answer 1 · 2022-08-10T06:57:38.230

1

A more efficient way would be to use an collector / index variable and inflate in continous time. For example the balance after 1 month would be:

balance = initial adjusted balance * growth index

, where

initial adjusted balance = adjusted balance / growth index

The Aave or Compound repository could be a good starting point.

edited Aug 10 '22 at 06:57

answered Aug 09 '22 at 08:06

Markus Schick

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Thanks for the answer! Though this equation this doesn't compound. Should've been clearer in the question. — editing now. Will check the contracts! – Ryan Sea Aug 10 '22 at 06:38
You would compound the index variable. – Markus Schick Aug 10 '22 at 06:53

What is the most efficient way of coding a compounding inflationary function for an ERC-20 token?

1 Answers1