1

Imagine that I have a contract where a user can buy and sell tokens based on a dynamic price in ETH.

The price is calculated every 2 hours by a server. When buying or selling, the value used is the next one that will be produced in the future (not the past ones). This means that there will be 2 steps to buy tokens: requestBuy to send the ETH and save the request on a mapping for sender's address, and executeBuy to convert the amount to tokens based on the price and send it to the buyer (same for selling).

  • requestBuy is called by the client.
  • executeBuy is called by the server.

Question

Should the owner write the price into the contract and call executeBuy or should send the price as an argument to executeBuy? What are the trade-offs for each one?

Main criteria: transparency of price history in the contract vs public API

  • You've asked what's "best" without defining any criteria. E.g. #3 and #4 differ in who pays for gas. Which is better depends on whether you think it's better for the users to pay for gas or for a centralized account to pay for gas. – user19510 Feb 22 '18 at 11:14
  • re-wrote the question to be more clear – banzap Feb 22 '18 at 14:04
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Your idea is that users request to buy tokens and deposit some amount of ETH without knowing how many (if any) tokens they will get for their money.

Why don't you create a function called updatePrice that enables the owner to store the current price in the smart contract. Every user can then see how many tokens they would get for their ETH. Also calling buy would be instantaneous because the price is already fixed and no one needs to approve the transaction. This also saves transaction fees for the owner.

The most transparent way would obviously be to calculate the price in the contract, but that might be impossible for your specific usecase.

  • prices are updated each hour (or 2 hours or per day, depending on configuration). if you buy now, you are gonna pay the price available in the next hour (that's how it works for this use case). that's why there I need an execute method to send the price and execute the buy when the price is created. so is impossible for the user to know for sure how many tokens will get, it will only know more or less how much based on past data – banzap Feb 22 '18 at 15:53
  • using oraclize was another solution. however, in my case won't be possible. – banzap Feb 22 '18 at 15:54
  • Okay, then it doesn't matter in which order you do it. Sending it as an argument would be cheaper. – Grunzwanzling Feb 22 '18 at 16:01
  • I agree the most transparent calculation will be in the contract but currently isn't feasible. that's why I'm trying to raise the question if having the price history would make sense in the contract to be a bit more transparent but might not be worth – banzap Feb 22 '18 at 16:13
  • Price history can be seen when you look at past transactions on etherscan – Grunzwanzling Feb 22 '18 at 18:34

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