dekuyper / single-pair-token-dex

MARKET MAKER

Introduction:

The MarketMaker is a converter contract that allows arbitrage bots and traders to convert the token to ETH and viceversa.

Token Price

It's expressed in wei, for example if the price is 0.1 ETH it's expressed as `100000000000000000` wei.
The token's price is set on deployment and it will increase with every token buy and decrease when the token is sold.
The formula on which the price is set will adapt the price according to the size of the transaction (order).
For example one buy order of 1000 Tokens will cost the same ETH as 1000 orders of 1 token. 

Functional flows:

Owner

1. Deploys the Token

2. Deploys the MarketMaker contract passing it the token's address

   • By default the buyTokens and sellTokens methods are disabled unless the contract is funded

3. Funding the MarketMaker contract

   • Calls the approve method on the Token
   • Calls the fund method on the MarketMaker

Trader

1. Buying tokens by calling buyTokens on MarketMaker
2. Selling tokens

• Calls approve on the Token
• Calls the sellTokens method on MarketMaker

Whitepaper

Market Maker Whitepaper.pdf

Development workflow

In order to run the tests automatically on file changes run the following npm task:

npm run watch test