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 Building Full Stack DeFi Applications

Building Full Stack DeFi Applications

By : Zhou
4.6 (5)
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 Building Full Stack DeFi Applications

Building Full Stack DeFi Applications

4.6 (5)
By: Zhou

Overview of this book

Enter the world of Decentralized Finance (DeFi) with Building Full Stack DeFi Applications. Understand how this blockchain-based financial technology, designed to manage crypto assets, runs independently without centralized financial institutions like banks and brokerages, eliminating the fees that banks and other financial companies charge for using their services. This book will show you how DeFi solutions are built with smart contracts running on blockchains and how they allow users to gain and earn crypto assets based on the trust of the smart contracts. This book uncovers the inner workings of DeFi by guiding you through the mathematical foundations and teaching you how to build real-world DeFi products with Solidity and JavaScript. As you progress through the chapters, you’ll learn how to implement smart contracts of liquidity pools to trade cryptocurrencies and implement staking, including farming features that allow users to earn. You’ll also find out how to create asset pools that allow users to lend and borrow cryptocurrencies and generate interest. Additionally, you’ll discover how to use Web3 libraries to build the frontend of DeFi products. By the end of this book, you’ll will be well acquainted with popular tools, libraries, and design patterns for implementing a full-stack DeFi application with Web3 and Solidity.
Table of Contents (21 chapters)
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1
Part 1: Introduction to DeFi Application Development
5
Part 2: Design and Implementation of a DeFi Application for Trading Cryptos
11
Part 3: Building a DeFi Application for Staking and Yield Farming
14
Part 4: Building a Crypto Loan App for Lending and Borrowing

Refactoring smart contracts to support native tokens in a DEX

As we discussed in previous chapters, the frontend of the DEX interacts with the AMMRouter smart contract to add liquidity, remove liquidity, and swap tokens. The AMMRouter smart contract transfers the tokens from the user to one instance of the TokenPair smart contract when adding liquidity and swapping tokens. It transfers tokens back from one of the TokenPair smart contracts to a user when removing liquidity and swapping tokens. If a liquidity pool-based DEX wants to deal with ETH or any native token, these processes need extra steps that involve wrapping or unwrapping the native tokens.

Next, we will discuss how AMMRouter works as the intermediary between the native token and TokenPair smart contracts.

The router as the intermediary

The router of a DEX plays an important role in performing all the extra steps for handling native tokens. It means the router will work as the intermediary between the user and...

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