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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