Build your own DEX (Decentralized Exchange)

This tutorial aims to provide a step-by-step approach, empowering you to create a custom DEX within the Polkadot ecosystem.

It is highly recommended that you complete the tutorial on Rust State Machine before you begin this tutorial to get an understanding of the general features on Substrate.

To implement the liquidity pool functionality, we'll learn how to store and manage liquidity pools on-chain. In Substrate, we can utilize the powerful storage capabilities provided by the framework to achieve this.

Using generic types, Substrate provides a powerful and flexible framework for blockchain development, enabling projects to adapt and innovate without being constrained by fixed type definitions.

Substrate provides a powerful and flexible storage system that allows you to store and retrieve data on the blockchain.

Object-oriented design principles, such as encapsulation and modularity, are essential when building complex systems like a decentralized exchange (DEX) pallet in Substrate.

In Substrate runtime pallet development, using safe math is crucial to ensure the stability and security of your blockchain network. When dealing with arithmetic operations, especially those involving user input or storage values, it's important to handle potential overflow or underflow situations gracefully.

Now that we have the mint and burn methods implemented, let's add the main functionality to swap tokens in our DEX. DEX exchanges, such as Uniswap V2.0 charged a 0.3% fee per swap, so we'll want to implement it as well.

Now, that we have the necessary methods implemented in our liquidity_pool. Let's define pallet calls that will call these methods.