Summary

In this chapter, you learned about what a DEX is and what values it brings to users. You saw that an exchange can have different ways to organize trade transactions using order books and market makers. Price adjustment becomes a hassle with this strategy. Then, to solve this, you learned about the AMM algorithm, where the price is adjusted automatically in the smart contract. You then built a smart contract that implemented a DEX using the AMM algorithm. The DEX smart contract could trade between ETH and an ERC-20 token smart contract. Finally, you tested the DEX smart contract and learned how it works. Learning to build a DEX smart contract can benefit readers in several ways. It provides a hands-on understanding of how decentralized finance (DeFi) applications work. Additionally, understanding the AMM algorithm and its implementation can enhance your knowledge of decentralized trading mechanisms. In the next chapter, which is the last chapter, you’re going to write...