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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

Summary

In this chapter, you learned how to implement smart contracts for crypto trading on DEXs. The smart contracts implemented in this chapter provides basic features including liquidity provisioning, liquidity removal, and swapping (buying and selling an ERC20 token with another ERC20 token). We also walked you through the reward calculation for an AMM-based DEX, and covered how to implement reward calculation formulas using Solidity code. At the end of this chapter, we used the Hardhat console to verify the functions we have implemented in this chapter.

There are three main components for a typical DEX using the CPMM mechanisms: token pairs, pair factories, and AMM routers. AMM routers are a type of smart contract designed to interact with all off-chain activities.

As mentioned previously, the DEX features implemented in this chapter form a foundation that we will enrich by adding more features in future chapters. In the next chapter, we will create a UI

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