DeFi Trading Platform

Personal Project

Solidity
React
TypeScript
Hardhat
Ethers.js
MetaMask
WalletConnect

Project Overview

A comprehensive decentralized trading platform built on Ethereum that enables users to trade cryptocurrencies through automated market makers (AMM) and provide liquidity to earn rewards. The platform features a modern React frontend with seamless Web3 integration and robust smart contract architecture.

This project demonstrates advanced DeFi concepts including liquidity pools, yield farming, and decentralized governance. Users can swap tokens, provide liquidity, stake LP tokens, and participate in governance decisions through a user-friendly interface that abstracts away the complexity of blockchain interactions.

Technical Architecture

System Architecture


β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”    β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”    β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
β”‚   React Frontend β”‚    β”‚   Smart Contractsβ”‚    β”‚   Ethereum Networkβ”‚
β”‚                 β”‚    β”‚                 β”‚    β”‚                 β”‚
β”‚  β€’ Trading UI   │◄──►│  β€’ AMM Contract │◄──►│  β€’ Mainnet      β”‚
β”‚  β€’ Wallet Conn. β”‚    β”‚  β€’ LP Tokens    β”‚    β”‚  β€’ Polygon      β”‚
β”‚  β€’ Portfolio    β”‚    β”‚  β€’ Governance   β”‚    β”‚  β€’ Arbitrum     β”‚
β”‚  β€’ Analytics    β”‚    β”‚  β€’ Staking      β”‚    β”‚                 β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜    β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜    β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜
         β”‚                        β”‚                        β”‚
         β–Ό                        β–Ό                        β–Ό
β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”    β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”    β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
β”‚   Web3 Layer    β”‚    β”‚   IPFS Storage  β”‚    β”‚   Price Oracles β”‚
β”‚                 β”‚    β”‚                 β”‚    β”‚                 β”‚
β”‚  β€’ Ethers.js    β”‚    β”‚  β€’ Metadata     β”‚    β”‚  β€’ Chainlink    β”‚
β”‚  β€’ MetaMask     β”‚    β”‚  β€’ Images       β”‚    β”‚  β€’ Uniswap V3   β”‚
β”‚  β€’ WalletConnectβ”‚    β”‚  β€’ Documents    β”‚    β”‚  β€’ CoinGecko    β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜    β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜    β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜
            

Smart Contract Layer

  • β€’ AMM Contract: Core trading logic with constant product formula
  • β€’ LP Token Contract: ERC-20 tokens representing liquidity positions
  • β€’ Staking Contract: Yield farming and reward distribution
  • β€’ Governance Contract: DAO voting and proposal system
  • β€’ Factory Contract: Deploys new trading pairs

Frontend Architecture

  • β€’ React 18: Component-based UI with hooks
  • β€’ TypeScript: Type-safe development
  • β€’ Zustand: Lightweight state management
  • β€’ React Query: Server state management
  • β€’ Tailwind CSS: Utility-first styling

Key Features

Token Swapping

Instant token swaps with minimal slippage using automated market maker algorithms.

  • β€’ Price impact calculation
  • β€’ Slippage protection
  • β€’ Multi-hop routing
  • β€’ Gas optimization

Liquidity Provision

Provide liquidity to earn trading fees and LP token rewards.

  • β€’ Dual-token deposits
  • β€’ Impermanent loss protection
  • β€’ Fee distribution
  • β€’ LP token minting

Yield Farming

Stake LP tokens to earn additional rewards and governance tokens.

  • β€’ Multiple reward pools
  • β€’ Compound interest
  • β€’ Lock-up periods
  • β€’ Boost multipliers

Portfolio Analytics

Comprehensive dashboard showing positions, P&L, and performance metrics.

  • β€’ Real-time balances
  • β€’ Historical charts
  • β€’ ROI calculations
  • β€’ Risk metrics

Governance

Decentralized governance allowing token holders to vote on protocol changes.

  • β€’ Proposal creation
  • β€’ Voting mechanisms
  • β€’ Execution timelock
  • β€’ Delegation system

Multi-Chain Support

Deploy across multiple EVM-compatible chains for broader accessibility.

  • β€’ Ethereum mainnet
  • β€’ Polygon network
  • β€’ Arbitrum L2
  • β€’ Cross-chain bridges

Technical Challenges & Solutions

Gas Optimization

Challenge:

High gas costs on Ethereum mainnet making small trades uneconomical for users.

Solution:

Implemented batch transactions, optimized contract bytecode, and deployed on Layer 2 solutions like Polygon and Arbitrum to reduce costs by 90%.

MEV Protection

Challenge:

Protecting users from front-running and sandwich attacks by MEV bots.

Solution:

Integrated with Flashbots Protect, implemented commit-reveal schemes, and added dynamic slippage protection based on market conditions.

Price Oracle Reliability

Challenge:

Ensuring accurate and manipulation-resistant price feeds for all supported tokens.

Solution:

Implemented a multi-oracle system using Chainlink, Uniswap V3 TWAP, and custom aggregation logic with outlier detection and fallback mechanisms.

Performance & Metrics

$2.5M+
Total Value Locked
15,000+
Total Transactions
1,200+
Active Users
99.9%
Uptime

Code Examples

Smart Contract - AMM Core Logic

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.19;

contract AMMPool {
    uint256 public constant MINIMUM_LIQUIDITY = 10**3;
    
    function swap(
        uint256 amountIn,
        uint256 amountOutMin,
        address tokenIn,
        address tokenOut,
        address to
    ) external returns (uint256 amountOut) {
        require(amountIn > 0, "Insufficient input amount");
        
        (uint256 reserveIn, uint256 reserveOut) = getReserves(tokenIn, tokenOut);
        
        // Calculate output amount using constant product formula
        amountOut = getAmountOut(amountIn, reserveIn, reserveOut);
        require(amountOut >= amountOutMin, "Insufficient output amount");
        
        // Execute swap
        IERC20(tokenIn).transferFrom(msg.sender, address(this), amountIn);
        IERC20(tokenOut).transfer(to, amountOut);
        
        emit Swap(msg.sender, tokenIn, tokenOut, amountIn, amountOut);
    }
    
    function getAmountOut(
        uint256 amountIn,
        uint256 reserveIn,
        uint256 reserveOut
    ) public pure returns (uint256 amountOut) {
        uint256 amountInWithFee = amountIn * 997; // 0.3% fee
        uint256 numerator = amountInWithFee * reserveOut;
        uint256 denominator = (reserveIn * 1000) + amountInWithFee;
        amountOut = numerator / denominator;
    }
}

Frontend - Swap Component

import { useState, useCallback } from 'react';
import { useSwap } from '../hooks/useSwap';
import { useTokenBalance } from '../hooks/useTokenBalance';

export const SwapComponent: React.FC = () => {
  const [amountIn, setAmountIn] = useState('');
  const [tokenIn, setTokenIn] = useState('ETH');
  const [tokenOut, setTokenOut] = useState('USDC');
  
  const { swap, isLoading, estimateGas } = useSwap();
  const balance = useTokenBalance(tokenIn);
  
  const handleSwap = useCallback(async () => {
    try {
      const gasEstimate = await estimateGas(amountIn, tokenIn, tokenOut);
      await swap({
        amountIn,
        tokenIn,
        tokenOut,
        slippage: 0.5, // 0.5%
        gasLimit: gasEstimate * 1.2
      });
    } catch (error) {
      console.error('Swap failed:', error);
    }
  }, [amountIn, tokenIn, tokenOut, swap, estimateGas]);
  
  return (
    <div className="swap-container">
      <TokenInput
        value={amountIn}
        onChange={setAmountIn}
        token={tokenIn}
        onTokenChange={setTokenIn}
        balance={balance}
      />
      <SwapButton onClick={handleSwap} disabled={isLoading} />
    </div>
  );
};

Future Roadmap

Concentrated Liquidity (Q2 2025)

Implement Uniswap V3-style concentrated liquidity for improved capital efficiency.

Cross-Chain Swaps (Q3 2025)

Enable seamless token swaps across different blockchain networks.

Mobile App (Q4 2025)

Launch native mobile applications for iOS and Android platforms.