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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

How price manipulation attacks are carried out on crypto loan systems

Price oracle manipulation is a common attack on DeFi protocols. Based on the statistics from Chainalysis (https://www.chainalysis.com/blog/oracle-manipulation-attacks-rising/), in 2022, DeFi protocols lost 403.2 million USD in 41 separate price oracle manipulation attacks. Most of the attacks impacted decentralized crypto loan systems and drained the assets of smart contracts, which caused a huge loss for investors and users.

For decentralized crypto loan systems, oracle manipulation attacks are usually not caused by the defects of smart contracts themselves. The attacks happen due to the vulnerability of the price oracles that are being used. Before diving into how to build a reliable price oracle, we need to understand how these attacks happen. We will see an example by attacking the crypto loan system we built in Chapter 11, An Introduction to Crypto Loans and Chapter 12, Implementing an Asset Pool Smart Contract...

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