In the cryptocurrency community, the emergence of Decentralized Finance has gained significant traction. It has grown tremendously popular among crypto aficionados since its creation. By 2019, DeFi had a market value of $500 million, and as of the writing of this article, it is now worth $100 billion.
The desire to learn more about the field grows together with the demand for DeFi dapps. A lot of startups and businesses are interested in learning how to construct a DeFi dapp, what its functions are, how it operates, and other details. The emphasis of this post is on offering a step-by-step tutorial for creating a DeFi dapp development using Solidity.
Let’s talk briefly about DeFi apps before getting into the building procedure.
Describe DeFi Dapps.
Blockchain-based decentralized finance applications offer all financial services in a way that is borderless and decentralized, allowing users to access and use all financial services. These apps enable cryptocurrency trading, lending and borrowing, interest-earning, price-movement speculation, and risk insurance. Smart contracts are used to conduct transactions between the parties, so there is no intervention from a centralized authority.
How Can DeFi Dapps Be Made?
The development process cannot begin without an environment setup. Let’s quickly go over each step.
1) Set up the ganache and truffle
The testing and development framework truffle is used to create Ethereum smart contracts. This program offers a practical method for creating and deploying smart contracts on the blockchain.
Another tool used by DeFi dapps is Ganache. To test smart contracts, it enables the creation of local Ethereum blockchains. The first ten accounts will each receive $100 in test either as a result of this tool’s stimulation of the blockchain dapp development services network’s functionality. As a result, it makes the deployment of smart contracts simple and cost-free.
2) Produce A Token Using ERC20
ERC20 is a fungible token used for smart contract staking. Installing an OpenZeppelin library is required in order to create an ERC20 token. This library contains ERC20 and ERC721 implementation standards.
3. Create an ERC20 token.
You must first verify the solidity compiler version before you can compile the smart contract. Run the following command to verify that:
Version with truffle
The base version of truffle is Solidity, version 0.5.16. When using the command to compile your contracts, you will get a compiler error if the token was written in Solidity version 0.6.2. Go to the file truffle-config.js and change the value to the solidity compiler version you want to use.
4) Use ERC Tokens
You are now able to deploy your token after the compilation is complete. Open Ganache and choose “Quickstart” to build a local Ethereum blockchain for this. Run truffle migrate to put your contract into action.
Use the first address on the Ganache to successfully deploy the smart contract. Open the Ganache desktop client to see the first account’s Ether balance, which has decreased as a result of the cost of Ether to deploy your smart contract.