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UniswapV2

Uniswap is a decentralized exchange (DEX). And thus aims to be an alternative to centralised exchanges. It is based on various smart contracts, which enable the exchange of tokens. Currently there are 3 versions of Uniswap. This repo deals with the second version i.e UniswapV2.

Code Comprehension:

This project helped me to develop a deep understanding of this complex codebase by analyzing and comprehending it. This project also provided valuable insights into the inner workings of decentralized exchanges.

Architecture Overview:

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Core:

  1. UniswapV2ERC20 – an extended ERC20 implementation that’s used for LP-tokens. It additionally implements EIP-2612 to support off-chain approval of transfers.
  2. UniswapV2Factory – similarly to V1, this is a factory contract that creates pair contracts and serves as a registry for them. The registry uses create2 to generate pair addresses–we’ll see how it works in details.
  3. UniswapV2Pair – the main contract that’s responsible for the core logic. It’s worth noting that the factory allows to create only unique pairs to not dilute liquidity.

Periphery:

  1. UniswapV2Router: Main entrypoint for the Uniswap UI and other web and decentralized applications working on top of Uniswap.

  2. UniswapV2Library: Collection of helper functions that implement important calculations

Tooling:

Foundry is used to compile and test the contracts.

Commands:

Contracts can be compiled with:

forge build

Tests can be deployed with:

forge test

Enjoy building✌️