This repository implements a decentralized exchange (DEX) inspired by the mechanics of Uniswap V2. The DEX is created on a multi-asset platform, and it leverages the benefits of the included pallet_assets, though you are free to implement your own multi-asset pallet.

Users can trustlessly exchange tokens, incentivized by the fee rewards system which encourages them to create liquidity pools. The implemented API further acts as a "price oracle," drawing data from these existing liquidity pools.

To be elaborated further

Users can create a liquidity pool by depositing two assets, setting the ratio (K), which is preserved during the swap operations. To regulate the creation of pools, a deposit of the native token is required from the user.

Key functions for managing liquidity pools include:

• create_pool
• add_liquidity
• remove_liquidity
• remove_pool

The DEX ensures the constant product (K) remains constant during swaps. If asset A and asset B are swapped, where A is BALANCE_IN_POOL_OF_ASSET_A and B is BALANCE_IN_POOL_OF_ASSET_B, the preservation of K is as follows:

A * B = k
(A + a) * (B - b) = k

The liquidity providers are rewarded with a 5% flat fee drawn from the depositing asset during swaps. The fee is added directly to the pool balance.

Functions handling swapping include:

• swap_exact_in_for_out
• swap_in_for_exact_out

For detailed information, please refer to the official Uniswap documentation.

Immediate changes to consider include:

• Remove the StorageMap from the storage.
• Make the fee percentage modifiable by moving the const FEE_PERCENTAGE: u32 = 5; to the config.

• Implement tests for various edge cases.
• Validate event submissions.

• Create some kind of asset or marketplace where users can use any token to purchase resources, using the price oracle to make sure users pay enough.
• Integrate other DeFi utilities on top of your DEX.

A fresh FRAME-based Substrate node, ready for hacking 🚀

Please first check the latest information on getting starting with Substrate dependencies required to build this project here.

To test while developing, without a full build (thus reduce time to results):

cargo t -p pallet-dex
cargo t -p <other crates>

Build the node without launching it, with release optimizations:

cargo b -r

Build and launch the node, with release optimizations:

cargo r -r -- --dev

Once the project has been built, the following command can be used to explore all CLI arguments and subcommands:

./target/release/node-template -h