Bikash-jha11/Decentralized-exchange-in-solidity
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Decentralized Exchange (DEX) - Solidity A peer-to-peer automated market maker (AMM) built on Ethereum. This protocol allows users to swap ERC-20 tokens, provide liquidity to earn fees, and maintain a trustless environment without a central intermediary. ## Core Features Automated Market Making (AMM): Uses the Constant Product formula $x \cdot y = k$ to determine asset prices. Liquidity Provision: Users can deposit token pairs into the pool to receive Liquidity Provider (LP) tokens. Token Swaps: Instant execution of trades between supported ERC-20 pairs. Fee Mechanism: A percentage fee (e.g., 0.3%) is collected on every trade and distributed proportionally to LP holders. ## Technical Architecture: The system is designed with modularity and security in mind: Factory Contract: Responsible for deploying and indexing individual exchange pairs. Pair Contract: The core logic engine that holds the reserves, manages the k value, and executes the swap, mint, and burn functions. Router Contract:A wrapper that simplifies user interactions, handles multi-hop swaps, and manages "safety" checks like slippage tolerance.