Swapify

Swapify is a decentralized exchange (DEX) platform where users can create their own liquidity pools, manage liquidity, and swap tokens.

Video Demo

Features

1. Create Tokens

   • Users can create their own ERC-20 tokens and have the ability to mint these tokens into other accounts.

2. Liquidity Pools

   • Users can create liquidity pools for their tokens, add liquidity to existing pools, and remove liquidity based on the LP tokens they hold.

3. Swap Tokens

   • Users can check the availability of token pools and swap tokens if liquidity is available.

Implementation

1. Create Tokens

   • Implemented an ERC-20 standard contract MockToken.sol that takes token name and symbol as input, generating corresponding tokens. The contract is deployed using the connected MetaMask wallet via a signer provided by MetaMask.

2. Pool Factory

   • The PoolFactory.sol contract manages liquidity pool addresses corresponding to token pairs. If no pool exists for a pair, it creates a new one, deploying the LiquidityPool.sol contract and saving its address.

3. Liquidity Pool

   • The LiquidityPool.sol contract handles liquidity management, including:
     • Adding liquidity while maintaining the pool ratio.
     • Removing liquidity based on LP tokens.
     • Managing token price rate conversions (token A to token B).
     • Charging a 0.1% fee on all transactions.

All contracts were thoroughly tested using Hardhat in the Backend/test directory.

Architecture

Challenges

1. Limited testnet tokens

   • Deployment issues were solved by using a local Hardhat network, enabling more flexibility for multiple test scenarios.

2. Contract testing issues

   • Faced challenges while testing the contracts' functionality.

3. Updates to Ethers.js documentation

   • Spent extra time researching current methods due to changes in the Ethers library documentation.

4. Understanding how DEXs work

   • Initially had limited knowledge of DEX mechanics, which required additional learning through videos and documentation.

5. MetaMask integration

   • First-time integration of MetaMask for signing transactions.

6. Deployment challenges

   • Running two servers simultaneously (local Hardhat chain and the main backend server) complicated the deployment process.

7. Cross-Chain

   • Lack of time and multiple local chain were difficult to handle.