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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

Identifying the best path, price, and price Impact

Best path, price, and price impact are three of the most important pieces of information before the user makes a decision for the transaction. If the price is not good or the price impact is too high, the user may not proceed with the transaction. The price and price impact are calculated based on the path the DeFi app selected. So, it is important to select a swapping path to make the deal. Compared to other paths that can make the swap, the best swapping path can do one of the following:

  • Receive more tokens when an amount of spending tokens is specified
  • Spend fewer tokens when an amount of receiving tokens is specified

Based on these principles, selecting the best path is determined by the following two types of factors:

  • The amounts of tokens in the reserves of the liquidity pools for every token pair along the path
  • The spending token amount or the receiving token amount specified by the user
...

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