Constant Sum Automated Market Maker

A very simple consant sum AMM
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Table of Contents

1. About The Project
   • Built With
2. Getting Started
   • Prerequisites
   • Installation
3. Usage
4. Roadmap
5. Contributing
6. License
7. Contact
8. Acknowledgments

About The Project

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Built With

• 
• 

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Getting Started

To get a local copy up and running follow these simple example steps.

Getting Started

To get a local copy up and running follow these simple example steps.

Prerequisites

• npm

  npm install npm@latest -g

• hardhat

  npm install --save-dev hardhat

  npm install @nomiclabs/hardhat-ethers @nomiclabs/hardhat-waffle

  run:

  npx hardhat

Installation

1. Clone the repo

   git clone https://github.com/Aboudoc/Constant-Sum-AMM.git

2. Install NPM packages

   npm install

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Usage

If you need testnet funds, use the Alchemy testnet faucet.

This project shows a basic example of Constant Sum AMM

Constant sum AMM

Constant sum AMM (automated market maker) is a decentralized exchange that trades two tokens in the contract.

Users will be able to add liquidity and earn swap fees, swap tokens and remove liquidity

Why is it called constant sum?

The amount of token to come out of the trade is determined by the following equation.

X = amount of token A in the contract
Y = amount of token B in the contract
K = a constant that satisfies the following equation

X + Y = K

X + Y equals some constant K, hence the name constant sum.

This equation X + Y = K must be true before and after every swap.

dx = Amount of token A that came in from the swap
dy = Amount of token B that went out from the swap

# Before the trade
X + Y = K

# After the trade
X + dx + Y - dy = K

Since X + Y = K, replace K in the second equation X + dx + Y - dy = K with X + Y

X + dx + Y - dy = X + Y
dx - dy = 0
dx = dy

In other words, the amount of token coming in from a swap must equal the amount of token going out.

Note

This contract assumes that token0 and token1 both have same decimals

Consider fees = 3%

Further reading

(...soon)

Sources

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Roadmap

• Further reading
• Deploy script
• Unit test

See the open issues for a full list of proposed features (and known issues).

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Contributing

Contributions are what make the open source community such an amazing place to learn, inspire, and create. Any contributions you make are greatly appreciated.

If you have a suggestion that would make this better, please fork the repo and create a pull request. You can also simply open an issue with the tag "enhancement". Don't forget to give the project a star! Thanks again!

1. Fork the Project
2. Create your Feature Branch (git checkout -b feature/AmazingFeature)
3. Commit your Changes (git commit -m 'Add some AmazingFeature')
4. Push to the Branch (git push origin feature/AmazingFeature)
5. Open a Pull Request

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License

Distributed under the MIT License. See LICENSE.txt for more information.

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Contact

Reda Aboutika - @twitter - reda.aboutika@gmail.com

Project Link: https://github.com/Aboudoc/Constant-Sum-AMM.git

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Acknowledgments

• Smart Contract Engineer

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