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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

Calculating the reward for staking and farming

So far, we’ve learned that the block number is the time unit for reward calculation. The more blocks generated after a user deposits the staked token, the more reward the user can earn, so long as the staking term hasn’t ended and the deposit amount doesn’t change. In this section, we will dive into the mathematics of reward calculation. The staking pool smart contract will use the formulas and parameters that we will discuss in this section.

Reward per block, starting block, and ending block

When deploying the staking smart contract, the deployer should plan for the staking terms based on how many reward tokens the deployer can offer. Here, we need to set each staking pool with the following three parameters:

  • Reward per block: The total amount of reward tokens distributed to all users who participate in the staking
  • Starting block: The starting block number of the staking period
  • Ending block:...

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