Derivative Swap by using UMA's Priceless Synthetic Tokens

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【Introduction of Derivative Swap by using UMA's Priceless Synthetic Tokens】

• This repos is dApp for derivative swap by using UMA's Priceless Synthetic Tokens.
  • One of UMA's Priceless Synthetic Tokens feature is tracking price of various assets. That is able to track price not only cryptocurrency, but also stock prices(Such as the stock price of TSLA, etc...) and commodity prices(Such as the commodity price of Oil)
  • Following a feature above, I have tried to build derivative swap to trade various assets which are created by using UMA's Priceless Synthetic Tokens.
  • It has potential to be involved stock and bond and commodity into DeFi(decentralized finance) market and be able to trade them with various pair. In case it is realized, it can bring more liquidity and connectivity (between crypto assets and traditional assets) into DeFi market.

 

【User Flow】(※ Implementation is in progress)

• ① User creates Priceless Synthetic Tokens on this dApp.
  • User select token's price index they want to track. (Such as ETH/BTC, the stock price of TSLA, the commodity price of Oil, etc...)
  • User select token expiry.
  • User deposit DAI as collateral.
  • User bollow Priceless Synthetic Tokens

• ② User trades Priceless Synthetic Tokens on this dApp.
  • My plan of trading implementation is utilizing Uniswap contract.

 

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【Setup】

Setup wallet by using Metamask

1. Add MetaMask to browser (Chrome or FireFox or Opera or Brave)
   https://metamask.io/

2. Adjust appropriate newwork below

Kovan Test Network

 

Setup backend

1. Deploy contracts to Kovan Test Network

(root directory)

$ npm run migrate:Kovan

 

Setup frontend

1. Add an .env file under the directory of ./client.

2. Add SKIP_PREFLIGHT_CHECK=true to an .env file under the directory of ./client.
   （Recommend to reference from ./client/.env.example）

3. Execute command below in root directory.

$ npm run client

4. Access to browser by using link

http://127.0.0.1:3000/derivative-swap

 

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【References】

• [UMA protocol]

  • [Repos]：UMA's contract

    • UMAprotocol/protocol/core
      https://github.com/UMAprotocol/protocol/tree/master/core

  • [Doc]： UMA's Priceless Synthetic Tokens

    • Explanation
      https://docs.umaproject.org/uma/getting_started/priceless_defi_contracts.html#_priceless_synthetic_tokens

    • Flow of Priceless Synthetic Tokens
      https://docs.umaproject.org/uma/synthetic_tokens/explainer.html#_creating_synthetic_tokens_from_an_existing_contract

    • Tutorial / Smart Contract
      https://docs.umaproject.org/uma/synthetic_tokens/creating_from_truffle.html#_parameterize_and_deploy_a_contract

    • Contract Address

      • Rinkeby and Kovan
        https://docs.umaproject.org/uma/developer_reference/contract_addresses.html
      • Kovan Synthetic Tokens
        https://docs.umaproject.org/uma/developer_reference/contract_addresses.html#_kovan_network_id_42

  • [Video]：

    • https://www.crowdcast.io/e/defi-discussions/18

  • [Demo dApp]：

    • Synthetic Token Builder（Rinekby）
      https://tokenbuilder.umaproject.org/
      （ https://medium.com/uma-project/announcing-the-uma-synthetic-token-builder-8bf37c645e94 ）

  • [Article]：　

    • HackMoney#UMA
      https://medium.com/uma-project/build-with-uma-at-hackmoney-48fd56d2eccc