Contracts
There are different type of Contracts used in DerpDEX, most of them falls under the below category:
Factory Contract:
The Factory contract is responsible for deploying and managing the creation of new instances of trading pairs or liquidity pools.
It provides a template for creating new pools and ensures standardisation across different trading pairs.
The Factory contract may also handle the registration and listing of newly created pools.
Router Contract:
The Router contract acts as the core routing mechanism within the DEX.
It facilitates the swapping of tokens between different liquidity pools or trading pairs.
Users interact with the Router contract to execute trades, allowing them to buy or sell tokens based on specified trade routes.
Liquidity Pool Contracts:
Liquidity Pool contracts are where liquidity providers contribute their funds, creating pools of tokens for trading.
These contracts enable users to add liquidity to the DEX by depositing token pairs in exchange for liquidity provider (LP) tokens.
Liquidity Pool contracts manage the liquidity ratio and pricing for the tokens within the pool.
NFT Position Manager Contract:
The NFT Position Manager contract is commonly used in decentralised exchanges that implement Automated Market Maker (AMM) models, such as Uniswap V3.
It allows liquidity providers to manage their positions in the liquidity pool as non-fungible tokens (NFTs).
Liquidity providers can adjust the price range and capital allocation of their positions within the pool using this contract.
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