[Feature] Impermanent Loss (IL) Protection for Long-Term LPs

[AlAfiz]

Description: Design a mechanism that tracks how long a user has provided liquidity and guarantees them a minimum return (offsetting impermanent loss) if they stay in the pool longer than 90 days.
Context / Motivation: Impermanent loss is the biggest deterrent to DeFi liquidity. By utilizing a protocol treasury to insure long-term LPs, TradeFlow can capture "sticky" liquidity that won't flee during market downturns.
Acceptance Criteria: - [ ] Record the precise ledger timestamp and asset ratio upon LP deposit.

• Calculate the divergence loss upon withdrawal.
• If the deposit age > 90 days, calculate the IL and mint/transfer compensation from the protocol treasury.
• Cap the maximum IL compensation to protect protocol solvency.
  Technical Pointers: The math for IL requires calculating square roots. You may need to implement a basic Babylonian square root algorithm in Rust, as Soroban does not have native floating-point math.

[senmalong]

Hello,

Please I’d love to take this issue on. I’m a smart contract and full-stack developer with experience across OnlyDust, Drips Waves

My stack includes Rust, Soroban, Cairo, Solidity, and TypeScript. I can deliver a clean, tested, and well-documented solution within 24 hours of assignment.

Happy to start immediately.

[Ulises-Mendiola]

I have experience building full-stack applications using TypeScript, Node.js, React, MongoDB, SQL databases, and implementing business rules involving financial calculations, state management, auditability, and long-term data tracking.

For this issue, I would focus on designing a secure liquidity position tracking mechanism capable of recording deposit metadata, validating holding periods, calculating eligibility for protection, and enforcing treasury safety limits. My approach would prioritize accuracy, protocol solvency, and comprehensive test coverage for edge cases involving position age, liquidity changes, and compensation boundaries.

I would also ensure the implementation follows Soroban smart contract constraints, using deterministic arithmetic and efficient storage patterns suitable for on-chain execution.

[Menjay7]

Hi! I came across this issue and would love to work on it. I have experience with similar tasks and I'm confident I can investigate, implement a clean solution, and thoroughly test it before submitting a PR. If the issue is still open, I would appreciate it if you could assign it to me. Thank you!

[gloskull]

Hi, I would love to work on this Issue.
I have 4 years of experience delivering solutions for projects like this, covering backend, frontend, full-stack and smart contract development. After carefully reviewing your requirements, I have a clear understanding of the task and am confident in my ability to deliver a clean, efficient, and thoroughly tested solution on time. I prioritize code quality, maintainability, and industry best practices throughout the development process.
My PR will be submitted in under 10hours.