Creating a full-stack DeFi app with Polygon

DeFi is now a serious matter of debate within the cryptocurrency house. DeFi stands for “Decentralized finance,” which signifies that there’s no central authority keeping track of and controlling the switch of funds. This additionally signifies that transactions in DeFi are P2P (peer to look), which signifies that no central authority is liable for transferral, and funds are despatched instantly from one entity to a different.

On this article we are going to discover ways to get began with DeFi by making a full-stack DeFi app on the Polygon chain utilizing Subsequent.js because the frontend. This app will promote and buy OKToken (a fictional token) from the person. Nevertheless, each buy transaction reduces one token from the quantity of tokens you will get per MATIC (promoting will increase this quantity by one). This isn’t an excellent demonstration, however this fashion you possibly can perceive how you can use your individual logic in Solidity sensible contracts and be taught to create your individual full-stack DeFi app utilizing Polygon.

Contents

Necessities

To get began with this tutorial, be sure to have the next:

Now that you’ve got checked the necessities, let’s proceed with creating our Hardhat mission to work with our Solidity smart contracts.

Making a Hardhat mission

Navigate to a secure listing and run the next command within the terminal to initialize your Hardhat mission:

npx hardhat

When you run the command, you need to see the next Hardhat initialization wizard in your terminal.

From the record, select Create a sophisticated pattern mission. Then you’ll be requested the place you need to initialize the Hardhat mission; don’t change the sphere, simply press Enter in order that the mission will get initialized within the present listing.

Then you’ll be requested whether or not or not you need to set up dependencies required in your Hardhat mission to run. Press y as a result of we can be needing these dependencies, and putting in them proper now’s the most effective concept.

Set up of dependencies will begin, and would possibly take a number of seconds or minutes relying upon the machine you’re working. Now, run the next command within the terminal to put in one other dependency we might want to ease our Solidity contract growth:

npm set up @openzeppelin/contracts

OpenZeppelin offers sensible contract requirements that we will use in our personal sensible contracts to simply create an Ownable, ERC-20 and ERC-721 contracts, and extra.

As soon as the dependencies are efficiently put in, open the listing in a code editor. I’ll be utilizing VS Code for this tutorial.

We can be creating two sensible contracts: the primary one can be our ERC-20 token itself and the second can be a vendor contract, which is able to facilitate shopping for and promoting of those tokens.

Creating our sensible contracts

Now, go to the contracts folder and create a brand new Solidity file named OKToken.sol, which is able to comprise our ERC-20 token contract.

Use the next code for this file:

// SPDX-License-Identifier: Unlicense
pragma solidity ^0.8.4;
import "@openzeppelin/contracts/token/ERC20/ERC20.sol";

contract OKToken is ERC20 {
    constructor() ERC20("OKT", "OKToken"){
        _mint(msg.sender, 10000 * 10 ** 18);
    }
}

Within the above code, we’re importing the ERC20.sol file from @openzeppelin/contracts which is able to assist us get began with an ERC-20 token simply. Then, within the constructor, we’re offering the image "OKT" and identify "OKToken" for our token.

That’s all for the token contract! Now, let’s work on the seller contract. Beneath the contracts folder, create a brand new file named OKVendor.sol with the next code:

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.4;
import "./OKToken.sol";
import "@openzeppelin/contracts/entry/Ownable.sol";

contract OKVendor is Ownable {
  OKToken yourToken;
  uint256 public tokensPerNativeCurrency = 100;
  occasion BuyTokens(handle purchaser, uint256 amountOfNativeCurrency, uint256 amountOfTokens);
  constructor(handle tokenAddress) {
    yourToken = OKToken(tokenAddress);
  }

  perform buyTokens() public payable returns (uint256 tokenAmount) {
    require(msg.worth > 0, "It is advisable to ship some NativeCurrency to proceed");
    uint256 amountToBuy = msg.worth * tokensPerNativeCurrency;

    uint256 vendorBalance = yourToken.balanceOf(handle(this));
    require(vendorBalance >= amountToBuy, "Vendor contract has not sufficient tokens to carry out transaction");

    (bool despatched) = yourToken.switch(msg.sender, amountToBuy);
    require(despatched, "Didn't switch token to person");
    tokensPerNativeCurrency = tokensPerNativeCurrency - 1;

    emit BuyTokens(msg.sender, msg.worth, amountToBuy);
    return amountToBuy;
  }
  perform sellTokens(uint256 tokenAmountToSell) public {

    require(tokenAmountToSell > 0, "Specify an quantity of token higher than zero");

    uint256 userBalance = yourToken.balanceOf(msg.sender);
    require(userBalance >= tokenAmountToSell, "You've gotten inadequate tokens");

    uint256 amountOfNativeCurrencyToTransfer = tokenAmountToSell / tokensPerNativeCurrency;
    uint256 ownerNativeCurrencyBalance = handle(this).steadiness;
    require(ownerNativeCurrencyBalance >= amountOfNativeCurrencyToTransfer, "Vendor has inadequate funds");
    (bool despatched) = yourToken.transferFrom(msg.sender, handle(this), tokenAmountToSell);
    require(despatched, "Didn't switch tokens from person to vendor");

    (despatched,) = msg.sender.name{worth: amountOfNativeCurrencyToTransfer}("");
    tokensPerNativeCurrency = tokensPerNativeCurrency + 1;
    require(despatched, "Didn't ship NativeCurrency to the person");
  }
  perform getNumberOfTokensInNativeCurrency() public view returns(uint256) {
    return tokensPerNativeCurrency;
  }

  perform withdraw() public onlyOwner {
    uint256 ownerBalance = handle(this).steadiness;
    require(ownerBalance > 0, "No NativeCurrency current in Vendor");
    (bool despatched,) = msg.sender.name{worth: handle(this).steadiness}("");
    require(despatched, "Didn't withdraw");
  }
}

This can assist us facilitate the shopping for and promoting of tokens.

Within the above contract, first we’re importing our token contract, which we’d like to be able to work together with our token contract utilizing the seller contract and name capabilities.

We’re additionally importing Ownable.sol from @openzeppelin/contracts. Which means the proprietor of the sensible contract can switch its possession and have entry to owners-only capabilities.

After initializing the sensible contract, we outline the variable tokensPerNativeCurrency which states the variety of tokens which might be bought utilizing 1 MATIC. We can be altering this quantity based mostly on the transactions made.

We then have a constructor which is able to take OKToken’s contract handle in order that we will talk with the deployed contract and carry out capabilities on them.

Within the buyTokens() perform, we’re performing checks to make sure the right quantity of MATIC is distributed to the sensible contract, and that the seller contract has the required quantity of tokens. Then we name the perform switch() from the OKToken occasion we beforehand created to switch the tokens to the request sender.

Within the sellTokens() perform, we’re performing checks to make sure that the request sender has sufficient tokens and if the seller contract has sufficient MATIC to ship again to the request sender. Then, we use the transferFrom() perform from the OKToken occasion we beforehand created to switch the tokens from the request sender’s pockets to the sensible contract. Nevertheless, the sender must approve this transaction; we carry out this approval on the consumer facet earlier than making the request. We’ll cowl this half once we make the entrance finish of this utility.

Lastly, we’ve got the withdraw() perform, which is simply accessible by the proprietor of the contracts. It permits them to withdraw all of the MATIC current on the contract.

Now that we’ve got the sensible contracts prepared, let’s deploy them to Polygon Mumbai testnet!

Deploying our sensible contracts

We can be making a script to deploy our contract to Polygon Mumbai. As soon as the contracts are deployed, we are going to programmatically ship all of the tokens saved on the deployer’s pockets to the seller contract.

First go to hardhat.config.js and underneath module.exports, add the next object in order that Hardhat is aware of which community to hook up with:

networks: {
  mumbai: {
    url: "https://matic-mumbai.chainstacklabs.com",
    accounts: ["PRIVATE KEY HERE"],
  }
}

We’re offering the community a reputation (mumbai on this case) and offering an RPC URL. The talked about RPC URL is for Polygon Mumbai. If you wish to use Polygon Mainnet you possibly can choose your RPC URL. Bear in mind to enter your individual pockets personal key with some check MATIC to pay for gasoline charges concerned within the sensible contract deployment course of.

Now, underneath the scripts folder, create a brand new file known as deploy.js. Paste within the following:

const { BigNumber, utils } = require("ethers");
const hardhat = require("hardhat");
async perform essential() {
  const OKToken = await hardhat.ethers.getContractFactory("OKToken");
  const oktoken = await OKToken.deploy();
  await oktoken.deployed();
  console.log("[📥] OKToken deployed to deal with: " + oktoken.handle);
  const OKVendor = await hardhat.ethers.getContractFactory("OKVendor");
  const okvendor = await OKVendor.deploy(oktoken.handle);
  console.log("[📥] OKVendor deployed to deal with: " + okvendor.handle);
  await oktoken.deployed();
  // Switch oktokens to vendor
  await oktoken.capabilities.switch(okvendor.handle, utils.parseEther("10000"));
  console.log("[🚀] Tokens transferred to OKVendor");
}
essential()
  .then(() => course of.exit(0))
  .catch((error) => {
    console.error(error);
    course of.exit(1);
});

Within the above file, we’re instructing Hardhat how you can deploy our contract. The essential() perform is the entry level right here. First, we get the OKToken contract and deploy it. Then, we get the OKVendor contract, present OKToken contract handle within the constructor, and deploy the contract. Then, we switch all of the funds from OKToken contract to OKVendor contract.

Run the next command within the terminal to run the script and deploy our contracts to the Polygon Mumbai community:

npx hardhat run --network mumbai scripts/deploy.js --show-stack-traces

Word that the community identify should match the one talked about in hardhat.config.js. After working the script, the contracts needs to be deployed and you need to see the next in your terminal:

In case you see an output just like this, your sensible contracts have been deployed and configured efficiently. Now, let’s proceed with creating our Subsequent.js utility.

Making a Subsequent.js DeFi app

Beneath the identical listing, run the next command within the terminal to create your Subsequent.js app:

npx create-next-app frontend

The above command will create a brand new app and routinely set up crucial dependencies.

Navigate to the frontend folder and use the next command within the terminal to put in further dependencies, which is able to assist us work together with our sensible contracts:

yarn add @thirdweb-dev/react @thirdweb-dev/sdk ethers web3

We’re putting in @thirdweb-dev/react and @thirdweb-dev/sdk in order that we will simply authenticate the person and join their wallets to our app utilizing MetaMask. ethers is a required dependency for thirdweb so we have to set up that as effectively. Lastly, we’re putting in web3 in order that we will work together with our sensible contract.

Including the thirdweb supplier

To get began, we have to wrap our app inside a thirdwebProvider in order that thirdweb can perform correctly.

Go to your _app.js file underneath pages folder and add within the following:

import { thirdwebProvider, ChainId } from "@thirdweb-dev/react";
import "../types/globals.css";
perform MyApp({ Part, pageProps }) {
  return (
    <thirdwebProvider desiredChainId={ChainId.Mumbai}>
      <Part {...pageProps} />
    </thirdwebProvider>
  );
}
export default MyApp;

Within the above code, we’re importing thirdwebProvider and enclosing our app inside it. We’re additionally offering a desiredChainId of the chain ID of Polygon Mumbai. You can too use the chain ID for Polygon Mainnet if you want to take action.

Create a brand new file in your Subsequent.js app root known as contracts.js and add the next content material:

export const oktoken = {
  contractAddress: "0xE83DD81890C76BB8c4b8Bc6365Ad95E5e71495E5",
  abi: [
    {
      inputs: [],
      stateMutability: "nonpayable",
      sort: "constructor",
    },
    {
      nameless: false,
      inputs: [
        {
          indexed: true,
          internalType: "address",
          name: "owner",
          type: "address",
        },
        {
          indexed: true,
          internalType: "address",
          name: "spender",
          type: "address",
        },
        {
          indexed: false,
          internalType: "uint256",
          name: "value",
          type: "uint256",
        },
      ],
      identify: "Approval",
      sort: "occasion",
    },
    {
      nameless: false,
      inputs: [
        {
          indexed: true,
          internalType: "address",
          name: "from",
          type: "address",
        },
        {
          indexed: true,
          internalType: "address",
          name: "to",
          type: "address",
        },
        {
          indexed: false,
          internalType: "uint256",
          name: "value",
          type: "uint256",
        },
      ],
      identify: "Switch",
      sort: "occasion",
    },
    {
      inputs: [
        {
          internalType: "address",
          name: "owner",
          type: "address",
        },
        {
          internalType: "address",
          name: "spender",
          type: "address",
        },
      ],
      identify: "allowance",
      outputs: [
        {
          internalType: "uint256",
          name: "",
          type: "uint256",
        },
      ],
      stateMutability: "view",
      sort: "perform",
    },
    {
      inputs: [
        {
          internalType: "address",
          name: "spender",
          type: "address",
        },
        {
          internalType: "uint256",
          name: "amount",
          type: "uint256",
        },
      ],
      identify: "approve",
      outputs: [
        {
          internalType: "bool",
          name: "",
          type: "bool",
        },
      ],
      stateMutability: "nonpayable",
      sort: "perform",
    },
    {
      inputs: [
        {
          internalType: "address",
          name: "account",
          type: "address",
        },
      ],
      identify: "balanceOf",
      outputs: [
        {
          internalType: "uint256",
          name: "",
          type: "uint256",
        },
      ],
      stateMutability: "view",
      sort: "perform",
    },
    {
      inputs: [],
      identify: "decimals",
      outputs: [
        {
          internalType: "uint8",
          name: "",
          type: "uint8",
        },
      ],
      stateMutability: "view",
      sort: "perform",
    },
    {
      inputs: [
        {
          internalType: "address",
          name: "spender",
          type: "address",
        },
        {
          internalType: "uint256",
          name: "subtractedValue",
          type: "uint256",
        },
      ],
      identify: "decreaseAllowance",
      outputs: [
        {
          internalType: "bool",
          name: "",
          type: "bool",
        },
      ],
      stateMutability: "nonpayable",
      sort: "perform",
    },
    {
      inputs: [
        {
          internalType: "address",
          name: "spender",
          type: "address",
        },
        {
          internalType: "uint256",
          name: "addedValue",
          type: "uint256",
        },
      ],
      identify: "increaseAllowance",
      outputs: [
        {
          internalType: "bool",
          name: "",
          type: "bool",
        },
      ],
      stateMutability: "nonpayable",
      sort: "perform",
    },
    {
      inputs: [],
      identify: "identify",
      outputs: [
        {
          internalType: "string",
          name: "",
          type: "string",
        },
      ],
      stateMutability: "view",
      sort: "perform",
    },
    {
      inputs: [],
      identify: "image",
      outputs: [
        {
          internalType: "string",
          name: "",
          type: "string",
        },
      ],
      stateMutability: "view",
      sort: "perform",
    },
    {
      inputs: [],
      identify: "totalSupply",
      outputs: [
        {
          internalType: "uint256",
          name: "",
          type: "uint256",
        },
      ],
      stateMutability: "view",
      sort: "perform",
    },
    {
      inputs: [
        {
          internalType: "address",
          name: "to",
          type: "address",
        },
        {
          internalType: "uint256",
          name: "amount",
          type: "uint256",
        },
      ],
      identify: "switch",
      outputs: [
        {
          internalType: "bool",
          name: "",
          type: "bool",
        },
      ],
      stateMutability: "nonpayable",
      sort: "perform",
    },
    {
      inputs: [
        {
          internalType: "address",
          name: "from",
          type: "address",
        },
        {
          internalType: "address",
          name: "to",
          type: "address",
        },
        {
          internalType: "uint256",
          name: "amount",
          type: "uint256",
        },
      ],
      identify: "transferFrom",
      outputs: [
        {
          internalType: "bool",
          name: "",
          type: "bool",
        },
      ],
      stateMutability: "nonpayable",
      sort: "perform",
    },
  ],
};
export const okvendor = {
  contractAddress: "0xAa3b8cbB24aF3EF68a0B1760704C969E57c53D7A",
  abi: [
    {
      inputs: [
        {
          internalType: "address",
          name: "tokenAddress",
          type: "address",
        },
      ],
      stateMutability: "nonpayable",
      sort: "constructor",
    },
    {
      nameless: false,
      inputs: [
        {
          indexed: false,
          internalType: "address",
          name: "buyer",
          type: "address",
        },
        {
          indexed: false,
          internalType: "uint256",
          name: "amountOfNativeCurrency",
          type: "uint256",
        },
        {
          indexed: false,
          internalType: "uint256",
          name: "amountOfTokens",
          type: "uint256",
        },
      ],
      identify: "BuyTokens",
      sort: "occasion",
    },
    {
      nameless: false,
      inputs: [
        {
          indexed: true,
          internalType: "address",
          name: "previousOwner",
          type: "address",
        },
        {
          indexed: true,
          internalType: "address",
          name: "newOwner",
          type: "address",
        },
      ],
      identify: "OwnershipTransferred",
      sort: "occasion",
    },
    {
      inputs: [],
      identify: "buyTokens",
      outputs: [
        {
          internalType: "uint256",
          name: "tokenAmount",
          type: "uint256",
        },
      ],
      stateMutability: "payable",
      sort: "perform",
    },
    {
      inputs: [],
      identify: "getNumberOfTokensInNativeCurrency",
      outputs: [
        {
          internalType: "uint256",
          name: "",
          type: "uint256",
        },
      ],
      stateMutability: "view",
      sort: "perform",
    },
    {
      inputs: [],
      identify: "proprietor",
      outputs: [
        {
          internalType: "address",
          name: "",
          type: "address",
        },
      ],
      stateMutability: "view",
      sort: "perform",
    },
    {
      inputs: [],
      identify: "renounceOwnership",
      outputs: [],
      stateMutability: "nonpayable",
      sort: "perform",
    },
    {
      inputs: [
        {
          internalType: "uint256",
          name: "tokenAmountToSell",
          type: "uint256",
        },
      ],
      identify: "sellTokens",
      outputs: [],
      stateMutability: "nonpayable",
      sort: "perform",
    },
    {
      inputs: [],
      identify: "tokensPerNativeCurrency",
      outputs: [
        {
          internalType: "uint256",
          name: "",
          type: "uint256",
        },
      ],
      stateMutability: "view",
      sort: "perform",
    },
    {
      inputs: [
        {
          internalType: "address",
          name: "newOwner",
          type: "address",
        },
      ],
      identify: "transferOwnership",
      outputs: [],
      stateMutability: "nonpayable",
      sort: "perform",
    },
    {
      inputs: [],
      identify: "withdraw",
      outputs: [],
      stateMutability: "nonpayable",
      sort: "perform",
    },
  ],
};

Bear in mind to exchange the contract addresses with your individual in order that the Subsequent.js app tries to hook up with the right sensible contract.

Now let’s begin coding up our app. Open index.js file underneath pages folder and add the next:

import { useAddress, useContract, useMetamask } from "@thirdweb-dev/react";
import Head from "subsequent/head";
import Picture from "subsequent/picture";
import { oktoken, okvendor } from "../contracts";
import types from "../types/Residence.module.css";
import { useEffect, useState } from "react";
import Web3 from "web3";
const web3 = new Web3(Web3.givenProvider);
export default perform Residence() {
  const [tokensPerCurrency, setTokensPerCurrency] = useState(0);
  const [tokens, setTokens] = useState(0);
  const handle = useAddress();
  const connectUsingMetamask = useMetamask();
  const account = web3.defaultAccount;
  const buy = async () => {
    const contract = new web3.eth.Contract(
      okvendor.abi,
      okvendor.contractAddress
    );
    const ethToSend = tokens / tokensPerCurrency;
    const buy = await contract.strategies.buyTokens().ship({
      from: handle,
      worth: web3.utils.toWei(ethToSend.toString(), "ether"),
    });
    console.log(buy);
    await fetchPrice();
  };
  const promote = async () => {
    const vendorContract = new web3.eth.Contract(
      okvendor.abi,
      okvendor.contractAddress
    );
    const tokenContract = new web3.eth.Contract(
      oktoken.abi,
      oktoken.contractAddress
    );
    const approve = await tokenContract.strategies
      .approve(
        okvendor.contractAddress,
        web3.utils.toWei(tokens.toString(), "ether")
      )
      .ship({
        from: handle,
      });
    const sellTokens = await vendorContract.strategies.sellTokens(tokens).ship({
      from: handle,
    });
    await fetchPrice();
  };
  const fetchPrice = async () => {
    const contract = new web3.eth.Contract(
      okvendor.abi,
      okvendor.contractAddress
    );
    const priceFromContract = await contract.strategies
      .getNumberOfTokensInNativeCurrency()
      .name();
    setTokensPerCurrency(priceFromContract);
  };
  useEffect(() => {
    fetchPrice();
  }, []);
  return (
    <div>
      <Head>
        <title>Change OKTokens</title>
      </Head>
      {handle ? (
        <div>
          <p>Tokens per foreign money: {tokensPerCurrency}</p>
          <div>
            <enter
              sort="quantity"
              worth={tokens}
              onChange={(e) => setTokens(e.goal.worth)}
            />
          </div>
          <button onClick={buy}>Buy</button>
          <button onClick={promote}>Promote</button>
        </div>
      ) : (
        <div>
          <button onClick={connectUsingMetamask}>Join utilizing MetaMask</button>
        </div>
      )}
    </div>
  );
}

It is a lengthy code block, so let’s see what the code is doing step-by-step:

• Initializing the web3 package deal utilizing a supplier arrange by thirdweb
• Utilizing thirdweb hooks useMetamask() to authenticate and useAddress() to verify authentication state, then rendering the login button if the person doesn’t have pockets related utilizing MetaMask
• Setting numerous states to map textual content bins in our app
• Making a fetchPrice() perform to work together with our sensible contract and verify what number of tokens one MATIC can get, whereas additionally creating an useEffect to verify this value at any time when the web page masses
• Making a buy() perform, which initializes our vendor contract and calls the buyTokens() perform from the contract, then sending some MATIC together with this transaction. Then, we name fetchPrice() in order that the most recent value is proven

Lastly, we’re making a promote() perform, which initializes each token and vendor contract. First we work together with token contract’s approve() perform and permit the seller contract to switch funds on our behalf. We then are calling sellTokens() perform from the seller contract to lastly promote the tokens and obtain MATIC. We’re additionally calling fetchPrice() to get the most recent value after transaction.

Our easy DeFi app is full! You may view this app in your browser by working the next command:

yarn dev

Now when you go to http://localhost:3000, you need to see the next display, and you need to be capable of make transactions.

Conclusion

This was a easy tutorial on how you can create your individual full-stack DeFi app based mostly on Polygon. You may implement your individual logic on the sensible contracts to make it even higher relying in your group. I counsel tinkering round with the code in an effort to be taught in one of the best ways potential.