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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

Implementing an asset pool share and its deployer

When a lender deposits assets into an asset pool, the lender owns shares of the pool to represent the lender’s ownership of a portion of tokens in it. In this book, we will use the term asset pool share to represent the lender’s ownership.

Next, let’s introduce an asset pool share.

Introducing an asset pool share

Similar to the liquidity pool token we discussed in Chapter 5, Building Crypto-Trading Smart Contracts an asset pool share is also an ERC20 token. One share represents an amount of an asset token. After a period of time, the interest will be cumulated by the asset token amount for each share. So, a user can receive an amount of shares on a deposit, and after a period of time, the user can get more asset tokens when they redeem the same amount of shares on withdrawal. Figure 11.7 shows how a crypto loan uses the asset pool share in deposit and withdraw operations:

Figure 11.7 – A demonstration of using the asset pool share in deposit and withdraw operations

Figure...

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