What this book covers

Chapter 1, Introduction to DeFi, explores the main characteristics of DeFi and introduces some of the popular DeFi applications. It also discusses the general architecture of DeFi applications, uncovers possible vulnerabilities in DeFi applications, and provides solutions.

Chapter 2, Getting Started with DeFi Application Development, shows how to create a starter DeFi project with an ERC20 token smart contract using the Solidity programming language that will run on Ethereum Virtual Machine (EVM). You will learn how to use Hardhat to compile, deploy, and debug the smart contract.

Chapter 3, Interacting with Smart Contracts and DeFi Wallets in the Frontend, guides you through building the frontend of DeFi applications with Node.js, React.js, and Material UI. You will also learn how to write code for interacting with smart contracts and connecting DeFi wallets to your applications to call smart contract functions.

Chapter 4, Introduction to Decentralized Exchanges, introduces different types of DEX. It dives into Automated Market Maker (AMM), which is a type of DEX we will build in this book. Meanwhile, we will explore the mathematics principles and the architecture of AMM.

Chapter 5, Building Crypto-Trading Smart Contracts, explores how to write smart contracts for token swapping, liquidity pool minting, and liquidity pool burning for a Constant Product Market Maker (CPMM), which is one of the most popular types of AMM on the market. By reading through the chapter, you will also learn how to deploy and verify smart contracts.

Chapter 6, Implementing a Liquidity Management Frontend with Web3, guides you through the process of building a frontend for liquidity management, including adding and removing liquidity. You will learn how to use ethers.js to interact with the smart contracts implemented in Chapter 5, Building Crypto-Trading Smart Contracts.

Chapter 7, Implementing a Token-Swapping Frontend with Web3, explores how to write the code for the frontend for the user to perform token swapping. Besides that, this chapter also discusses and implements code to find the swapping path between any pair of tokens in the DEX using a graph and explores how to calculate the price impact for each swapping.

Chapter 8, Working with Native Tokens, discusses how to deal with the native tokens of a blockchain network in smart contracts. It also shows you how to support native tokens in the smart contracts. Meanwhile, this chapter also implements improvements to the frontend code from Chapter 6, Implementing a Liquidity Management Frontend with Web3 and Chapter 7, Implementing a Token-Swapping Frontend with Web3 to support native tokens.

Chapter 9, Building Smart Contracts for Staking and Farming, explains the two DeFi features: of staking and farming by diving into the architecture and reward calculation. It also shows how to implement and verify smart contracts for staking and farming.

Chapter 10, Implementing a Frontend for Staking and Farming, guides you through the implementation of the staking pool listing dashboard, the pages for administrators to create staking, pool, and supply rewards, as well as the pages for users to deposit and withdraw tokens and harvest rewards.

Chapter 11, Introduction to Crypto Loans, introduces the characteristics of a crypto loan system and the architecture of the crypto loan smart contract we will build in this book. It also discusses the interest rate model we will use for our crypto loans, the concept of an asset pool, and the token to represent the shares of the asset pools.

Chapter 12, Implementing an Asset Pool Smart Contract for a Crypto Loan, explores the implementation of the most important component of a crypto loan system: asset pool smart contracts. By exploring this smart contract, you will learn how assets are managed and how user ledgers are implemented to keep track of lending and borrowing records.

Chapter 13, Implementing a Price Oracle for Crypto Loans, introduces and implements a price oracle smart contract based on the DEX implemented in Chapter 5, Building Crypto-Trading Smart Contracts. A price oracle is an essential component of a crypto loan system. After implementing the price oracle, the chapter also shows you how to deploy and run the price oracle for a crypto loan system.

Chapter 14, Implementing the Crypto Loan Frontend with Web3, discusses how to interact with the smart contracts in a crypto loan system with ethers.js. It guides you through the implementation of a crypto loan frontend, including the pages for displaying account summaries and asset pool information. Also, you will learn how to implement the pages for deposit, withdrawal, borrowing, and repayment by interacting with crypto loan smart contracts.