June 14, 2020 Javeria Afzal

Case Study: CryptoFarm Decentralized Exchange

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Xord’s Task – To develop a Decentralized Exchange (DEX) where trading between tokens can take place.

About CryptoFarm:

CryptoFarm is a Canadian company that was founded in 2018. The aim behind its establishment is putting some significant energy problems of the world to an end. How? By constructing and operating zero-emission cryptoasset networks and research deployment systems. 

Project:

CryptoFarm launched its own token called FARM which, according to them, is a unique domain cryptoasset. Our task was to design and develop a platform where FARM tokens can be exchanged.

After working out on this idea, our team at Xord decided to develop an Ethereum-based decentralized exchange. Ethereum is one of the public Blockchain platforms that utilizes Smart Contracts. This exchange is called DEX. It is designed in such a way that the final product would be able to exchange FARM tokens with Ethers.

The Decentralized Exchange:

The DEX is a custom exchange, that is, it allows the trade of FARM tokens only. Following are the features we included in the DEX:

  • Hydro:
    The Software Development Kit (SDK) we used to construct the exchange is Hydro. Hydro serves as a foundation for building decentralized exchanges. Hydro Relayers are the exchanges built on Hydro. It saves time and cost and helps in designing custom exchanges. It also helps in designing and deployment of Smart Contracts.
  • wETH:
    DEX works on the principle of wETH (Wrapped Ethers). wETH makes the trade between ETHs and ERC20 tokens possible on a decentralized platform. Ethereum-based decentralized platforms utilize Smart Contracts to carry out the trade by following a standard format. One cannot exchange ETHs directly with ERC20 tokens. Therefore, wrapping ETHs means upgrading them to the ERC20 standard. In this way, ETHs and ERC20 tokens can be exchanged directly on a decentralized platform by using a single Smart Contract.
  • DEX allows users to sell and purchase FARM tokens in exchange for ETHs only. If the user does not possess ETHs, he can purchase them in exchange for any currency he holds after which he would be able to purchase FARMs.
  • Users are also able to connect their Metamask wallets with DEX. It is also an Ethereum-based wallet and it holds digital assets. Once connected with DEX, tokens within the wallet can be traded through this decentralized exchange.

How Does DEX Work?

Let’s take a look at DEX and see how it functions:

Decentralized Exchange

  1. The “FARM-WETH” button enables owners to create a market for FARM tokens. They can set rules and regulations to carry out trade between ETHs and FARMs. It allows users to interact with the existing markets created by the owner. All the markets that the owner will create will be shown here.
    The second button shows the address of the Metamask wallet linked to the DEX.
    The “Purchase Ether” button is a customized feature added in the DEX. It allows users to purchase ETHs in exchange for any currency via PayPal. To exchange FARM tokens or to pay transaction fees in the form of gas when selling FARM tokens require ETHs.

  2. This section is for the traders to buy or sell FARM tokens in exchange for wETHs. The amount of FARMs determines the price in wETHs.

    CryptoFarm Decentralized Exchange
  3. The “Orderbook” section consists of a list of the number of FARM tokens to be traded along with their prices.
    After completion of the trade, it gets listed in the “Trade History” section.
    The “Wallet” section presents the tokens in the wallet and allows wrapping and unwrapping of ETHs.CryptoFarm Decentralized Exchange
  4. The “Charts” section is for graphical representation of the trade occurring on DEX. This will help in determining fluctuations in the market value of tokens.
    The “Orders” section lists all the exchanges done on this DEX.

Conclusion

The decentralized exchange was made live in January 2020. Since DEX is built on Ethereum Blockchain, Etherscan helps users to view and validate transactions that have taken place on Ethereum Blockchain. So far, the Total Supply of FARM tokens is 32,000,000.
Total Holders = 20 addresses
Transfers = 62

Need help with your Blockchain project? We’ve got you covered! Connect with Xord.
Link: https://xord.one/contact/


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