LiteDEX

LiteDEX is a simple Automated Market Maker (AMM) Decentralized Exchange built with Solidity and Next.js. It implements the constant product formula ($x * y = k$) and allows users to swap tokens, add liquidity, and earn fees.

Project Structure

• /contracts: Smart contracts (DEX, Factory, Mock Tokens).
• /frontend: Next.js web application.
• /scripts: Hardhat deployment scripts.
• /test: Automated test suite for smart contracts.

Smart Contracts

• SimpleDEX.sol: The core AMM contract handling swaps (0.3% fee) and liquidity provision.
• DEXFactory.sol: Factory contract to deploy and track multiple trading pairs.
• MockERC20.sol: Sample tokens for testing.

Getting Started (Contracts)

1. Install Dependencies

npm install

2. Compile Contracts

npx hardhat compile

3. Run Tests

npx hardhat test

4. Deploy Locally

First, start a local Hardhat node:

npx hardhat node

Then deploy the contracts:

npx hardhat run scripts/deploy.js --network localhost

Security Features

• ReentrancyGuard: Protects against recursive call attacks.
• Price Oracle (TWAP): Industry-standard time-weighted average price tracking.
• K-Invariant Check: Ensures pool mathematical stability after every swap.