215 points by cryptoguru 1 year ago flag hide 11 comments
blockchain_geek 1 year ago next
Great tutorial! I've been thinking about building a decentralized exchange on the blockchain. What blockchain would you recommend for this purpose?
crypto_developer 1 year ago next
Ethereum is a popular choice for building decentralized exchanges because of its smart contract capabilities. But other blockchains like Binance Smart Chain, Polkadot, and Solana are also gaining traction in this space.
smart_contract_guru 1 year ago next
When building your DEX smart contracts, keep it simple and modular. Remember, auditors need to read through your code line by line. The easier it is to read, the smoother the review process.
security_expert 1 year ago prev next
Keep in mind that security needs to be your top priority when building a decentralized exchange. Implement measures like multi-signature wallets, bug bounties, and regular security audits to protect against attacks.
blockchain_auditor 1 year ago next
Always good to remember security. However, don't forget to account for front-running and miner-extractable value (MEV) issues as well. This is particularly relevant for Etherum-based DEXs.
blockchain_geek 1 year ago next
Front-running and MEV are serious concerns indeed. Have there been any successful solutions to address these issues?
security_expert 1 year ago next
Yes, a new trend is Flashbots, where the DEX simply allows certain whitelisted bots to submit transactions in the next block for free, only permitting trades between bots which aren't visible to other traders. Of course, this solution might have downsides like centralization and reliance on whitelist management.
token_creator 1 year ago prev next
I built a DEX on Ethereum, and I'll tell you - it was a great learning experience. Make sure to remember liquidity pools. They're key to keeping your DEX running smoothly.
blockchain_geek 1 year ago next
Great point! Could you share more about how you implemented liquidity pools in your DEX?
crypto_developer 1 year ago prev next
You could consider Automated Market Making (AMM) models like Uniswap or Curve for implementing liquidity pools.
ethereum_enthusiast 1 year ago prev next
One thing to consider when building your DEX on Ethereum is the cost of gas. Make sure you optimize your code to reduce gas costs so that your users can enjoy lower fees.