Mohd Yasar (Backend-Sr. Associate Consultant L2 - Development)

The world of decentralized finance (DeFi) has been revolutionized by innovations such as staking pools. Liquid staking pools, in particular, offer a unique way for users to stake their cryptocurrencies while retaining liquidity. In this blog post, we will explore what a liquid staking pool is, why it is beneficial, and how to create one. If you are looking for more information about DeFi, visit our DeFi development services 

What is Liquid Staking?

Liquid staking allows users to stake their cryptocurrencies in a network to earn rewards while still having access to their staked assets. Unlike traditional staking, where assets are locked up for a period, liquid staking issues a derivative token representing the staked assets. We can trade this derivative token, use it in other DeFi protocols, or exchange it for my original staked assets and rewards. 

How to Create a Liquid Staking Pool

Creating a liquid staking pool involves several steps, including setting up a smart contract, issuing derivative tokens, and integrating with DeFi protocols. Below, we'll walk through a simplified example using Solidity, the programming language for Ethereum smart contracts.

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Step 1: Setting Up the Smart Contract

First, you'll need to set up a smart contract to handle staking and issuing derivative tokens. Here's a basic example:

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
import "@openzeppelin/contracts/access/Ownable.sol";

contract LiquidStakingPool is ERC20, Ownable {
    ERC20 public stakedToken;
    uint256 public totalStaked;

    constructor(address _stakedToken) ERC20("Staked Token", "sTOKEN") {
        stakedToken = ERC20(_stakedToken);
    }

    function stake(uint256 _amount) external {
        require(_amount > 0, "Cannot stake 0 tokens");

        stakedToken.transferFrom(msg.sender, address(this), _amount);
        _mint(msg.sender, _amount);
        totalStaked += _amount;
    }

    function unstake(uint256 _amount) external {
        require(_amount > 0, "Cannot unstake 0 tokens");
        require(balanceOf(msg.sender) >= _amount, "Insufficient balance");

        _burn(msg.sender, _amount);
        stakedToken.transfer(msg.sender, _amount);
        totalStaked -= _amount;
    }
}

In this example, the LiquidStakingPool contract allows users to stake an ERC20 token and receive a derivative token (sTOKEN). The stake function transfers the staked tokens to the contract and mints an equivalent amount of sTOKEN. The unstake function burns the sTOKEN and transfers the original staked tokens back to the user.

Step 2: Issuing Derivative Tokens

The derivative tokens (sTOKEN) represent the user's share in the staking pool. They can be used in various DeFi protocols for additional yield opportunities.

Also, Explore | Exploring the Potential of Liquid Staking Derivatives (LSD)

Step 3: Integrating with DeFi Protocols

To maximize the benefits of liquid staking, you can integrate your staking pool with other DeFi protocols. For example, you can create a liquidity pool on a decentralized exchange (DEX) for the derivative tokens or use them as collateral in lending platforms.

Explore More | An Explainer to Liquidity Staking Solution

Conclusion

Creating a liquid staking pool can provide numerous benefits to users, including liquidity, flexibility, and compounding rewards. By following the steps outlined in this guide, you can create your own liquid staking pool and contribute to the growing DeFi ecosystem. If you are looking for more DeFi development services, connect with our blockchain developers for more information. 

Smart contract development holds immense potential in supply chain management. By leveraging the transparency, immutability, and automation features of blockchain, supply chain smart contracts can streamline operations, enhance trust among stakeholders, and mitigate the risk of fraud or errors. 

In this blog, we'll delve into the creation of a simple supply chain smart contract using Solidity. We'll break down the code step by step, explaining each component and its role in the contract's functionality.

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Developing a Simple Supply Chain Smart Contracts

Let's start by examining the structure of our supply chain smart contract. The contract consists of several key components:

1. Enum for Order Status: We define an enumeration named Status to represent the different stages an order can be in—Pending, Shipped, and Delivered. This enum helps in tracking the progress of orders within the supply chain.

enum Status {
 Pending,
 Shipped,
 Delivered
}

2. Order Struct: Next, we define a struct named Order to encapsulate the details of each order. It includes fields such as the seller's address, the buyer's address, the price of the order, and its current status.

struct Order {
 address seller;
 address buyer;
 uint256 price;
 Status status;
}

3. Mapping for Orders: We declare a mapping named orders to store instances of the Order struct. Each order is associated with a unique order ID, which serves as the key in the mapping.

mapping(uint256 => Order) public orders;

4. State Variables: We declare a state variable—orderCount to keep track of the total number of orders and public to allow external access, and to increment order IDs sequentially.

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uint256 public orderCount;

5. Events: We define three events—OrderCreated, OrderShipped, and OrderDelivered—to emit notifications whenever a new order is created, shipped, or delivered, respectively. Events provide a way to log and track important contract actions.

Also, Read | NFT Integration for Remodelling Supply Chain Processes

event OrderCreated(
 uint256 orderId,
 address indexed seller,
 address indexed buyer,
 uint256 price
);
event OrderShipped(uint256 orderId);
event OrderDelivered(uint256 orderId);

Discuss the Functions Defined within the Smart Contract and its Respective Functionalities

1. createOrder: This function allows sellers to create new orders by specifying the buyer's address and the price of the order. It validates the input parameters, increments the orderCount, creates a new Order instance, and stores it in the mapping of the order. Additionally, it emits the OrderCreated event to notify interested parties.

function createOrder(address _buyer, uint256 _price) external {
  require(_buyer != address(0), "Invalid buyer address");
  require(_price > 0, "Price must be greater than zero");

  orderCount++;
  orders[orderCount] = Order(msg.sender, _buyer, _price, Status.Pending);

  emit OrderCreated(orderCount, msg.sender, _buyer, _price);
}

2. shipOrder: Sellers use this function to mark an order as shipped once they have dispatched the goods. The function verifies that the caller is the seller of the specified order and that the order is in the "Pending" status. If the conditions are met, it updates the order status to "Shipped" and emits the OrderShipped event.

function shipOrder(uint256 _orderId) external {
  require(_orderId > 0 && _orderId <= orderCount, "Invalid order ID");
  require(
    msg.sender == orders[_orderId].seller,
    "Only seller can ship the order"
  );
  require(
    orders[_orderId].status == Status.Pending,
    "Order has already been shipped or delivered"
  );

  orders[_orderId].status = Status.Shipped;


  emit OrderShipped(_orderId);
}

3. deliverOrder: Buyers invoke this function to confirm the delivery of an order. Similar to the shipOrder function, it checks the caller's address and the current status of the order. If the conditions are satisfied, it updates the order status to "Delivered" and emits the OrderDelivered event.

function deliverOrder(uint256 _orderId) external {
  require(_orderId > 0 && _orderId <= orderCount, "Invalid order ID");
  require(
    msg.sender == orders[_orderId].buyer,
    "Only buyer can confirm delivery"
  );
  require(
    orders[_orderId].status == Status.Shipped,
    "Order has not been shipped yet"
  );

  orders[_orderId].status = Status.Delivered;

  emit OrderDelivered(_orderId);
}

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In conclusion, we have explored the development of a supply chain smart contract using Solidity. By employing blockchain technology and smart contracts, supply chain management processes can be made more efficient, transparent, and secure. The code provided in this article serves as a foundation for building more complex supply chain solutions, incorporating additional features such as payment processing, product tracking, and inventory management.
 

Here is the whole code for the smart contract:

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

contract SupplyChain {
    enum Status {
        Pending,
        Shipped,
        Delivered
    }

    struct Order {
        address seller;
        address buyer;
        uint256 price;
        Status status;
    }

    mapping(uint256 => Order) public orders;
    uint256 public orderCount;

    event OrderCreated(
        uint256 orderId,
        address indexed seller,
        address indexed buyer,
        uint256 price
    );
    event OrderShipped(uint256 orderId);
    event OrderDelivered(uint256 orderId);

    function createOrder(address _buyer, uint256 _price) external {
        require(_buyer != address(0), "Invalid buyer address");
        require(_price > 0, "Price must be greater than zero");

        orderCount++;
        orders[orderCount] = Order(msg.sender, _buyer, _price, Status.Pending);

        emit OrderCreated(orderCount, msg.sender, _buyer, _price);
    }

    function shipOrder(uint256 _orderId) external {
        require(_orderId > 0 && _orderId <= orderCount, "Invalid order ID");
        require(
            msg.sender == orders[_orderId].seller,
            "Only seller can ship the order"
        );
        require(
            orders[_orderId].status == Status.Pending,
            "Order has already been shipped or delivered"
        );

        orders[_orderId].status = Status.Shipped;

        emit OrderShipped(_orderId);
    }

    function deliverOrder(uint256 _orderId) external {
        require(_orderId > 0 && _orderId <= orderCount, "Invalid order ID");
        require(
            msg.sender == orders[_orderId].buyer,
            "Only buyer can confirm delivery"
        );
        require(
            orders[_orderId].status == Status.Shipped,
            "Order has not been shipped yet"
        );

        orders[_orderId].status = Status.Delivered;

        emit OrderDelivered(_orderId);
    }
}

For more information about solutions development for supply chain management powered by blockchain and smart contracts, connect with our skilled smart contract developers. 

Smart contracts have become a fundamental building block of decentralized applications (DApps) on blockchain platforms like Ethereum. After smart contract development, rigorous testing is essential to ensure the security and reliability of these contracts. In this blog post, we will learn about the tools and how to test a smart contract.

Ethereum Smart Contract Testing

Before starting with the testing, it is important to understand various types of testing and tools and frameworks used to test smart contracts for Ethereum.

Types of Testing for Solidity Smart Contracts

There are several types of testing for Solidity smart contracts, each serving a specific purpose:

• Unit Testing: This involves testing individual functions or methods within a contract. It is the most granular level of testing and helps identify code-level issues.
• Integration Testing: Integration testing focuses on how different parts of the smart contract interact with each other. It ensures that the contract's components work together harmoniously.
• Functional Testing: Functional tests verify that the contract behaves as expected from an end-user perspective. It tests whether the contract correctly executes its intended functionality.
• Security Audits: Security audits, often performed by external experts, identify vulnerabilities, including those that could lead to hacks or exploits.
• Gas Usage Testing: Testing the gas usage of your contract helps optimize its efficiency and minimize transaction costs for users.

Tools and Framework

Several tools and frameworks are available to help test Solidity smart contracts:

• Truffle: Truffle is a widely used development and testing framework for Ethereum. It provides various tools to compile, test, and deploy smart contracts.
• Hardhat: Hardhat is an Ethereum development environment that includes a testing framework. It offers extensive support for writing tests and running them in a local environment.
• Remix: Remix is an in-browser development and testing tool for Ethereum smart contracts. It is an excellent choice for quick contract testing and debugging.

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Test Case for an ERC-20 Smart Contract

In this section, we will test an ERC20 smart contract using the Hardhat environment. Below are the test cases for a standard ERC20 smart contract:

The “beforeEach” function deploys a new smart contract in the test environment for every “it” block in the test cases. Each “it” block has a description that denotes the functionality that the block tests.

const { expect } = require("chai");
const { ethers } = require("hardhat");

describe("Token contract", function () {
  let Token;
  let token;
  let owner;
  let buyer;

  beforeEach(async function () {
    Token = await ethers.getContractFactory("MyToken");
    token = await Token.deploy(1000);
    [owner, buyer] = await ethers.getSigners();
  });

  describe("Deployment", function () {
    it("Should return the right owner as set during deployment", async function () {
      expect(await token.balanceOf(owner.address)).to.equal(1000);
    });

    it("Should return the total supply as set during deployment", async function () {
      expect(await token.totalSupply()).to.equal(1000);
    });
  });

  describe("Transactions", function () {
    it("Should transfer tokens between different accounts", async function () {
      await token.transfer(buyer.address, 100);
      expect(await token.balanceOf(owner.address)).to.equal(900);
      expect(await token.balanceOf(buyer.address)).to.equal(100);
    });

    it("Should fail if sender doesn’t have enough tokens for transfer", async function () {
      const initialOwnerBalance = await token.balanceOf(owner.address);

      await expect(
        token.transfer(buyer.address, 10000)
      ).to.be.revertedWithoutReason();

      expect(await token.balanceOf(owner.address)).to.equal(initialOwnerBalance);
    });

    it("Should update allowance after approve", async function () {
      await token.approve(buyer.address, 100);
      expect(await token.allowance(owner.address, buyer.address)).to.equal(100);
    });

    it("Should transfer tokens from one account to another with allowance", async function () {
      await token.approve(buyer.address, 100);
      await token.transferFrom(owner.address, buyer.address, 100);

      expect(await token.balanceOf(owner.address)).to.equal(900);
      expect(await token.balanceOf(buyer.address)).to.equal(100);
      expect(await token.allowance(owner.address, buyer.address)).to.equal(0);
    });

    it("Should fail if sender doesn’t have enough allowance", async function () {
      await token.approve(buyer.address, 99);

      await expect(
        token.transferFrom(owner.address, buyer.address, 100)
      ).to.be.revertedWith("ERC20: transfer amount exceeds allowance");
    });
  });
});

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Smart Contract Development with Oodles

Smart contracts developers at Oodles Blockchain have expertise in programming languages like Solidity, Elixir, Rust, Golang, and more. you can automate your business with our smart contract development services. Connect with our smart contract developers to discuss your project requirements.

Derivative is a contract whose value is derived from an underlying asset. The underlying asset can be a stock, bond, commodity, currency, or even an index. Derivatives essentially act as contracts between two parties, speculating on the future value of the underlying asset. They enable investors to speculate on price movements, hedge against potential risks, or gain exposure to various markets. Derivates trading can also take place in the crypto space with the help of crypto exchange development services.

Types of derivatives:

Futures Contracts:

Futures contract is an agreement to buy or sell an asset at a pre-agreed price on a specific future date. They provide investors with the opportunity to profit from price movements without owning the underlying asset.

Options Contracts:

Options give the holder the right, but not the obligation, to buy (call option) or sell (put option) an asset at a predetermined price within a specified period. Options provide flexibility and can be used for speculation, hedging, or generating income.

Swaps:

Swaps involve the exchange of cash flows or assets between two parties over a specific period. The most common types of swaps include interest rate swaps, currency swaps, and commodity swaps. Swaps are often utilized by institutions to manage interest rates, currency, or commodity risks.

Derivative Trading Strategies

Speculation:

Traders can invest with a hope of gain but with a risk of loss on the future price movements of the underlying asset. They can go long (buy) if they expect the price to rise or go short (sell) if they anticipate a decline. The speculation involves taking calculated risks based on market analysis, trends, and other factors.

Hedging:

Derivatives are often used for hedging purposes to mitigate potential risks. For example, a farmer may enter into a futures contract to sell their crop at a predetermined price, protecting them from adverse price movements. Hedging helps reduce exposure to volatility and safeguards against potential losses.

Arbitrage:

Arbitrage involves exploiting price discrepancies between different markets or related securities. Traders identify opportunities where the same asset is priced differently, allowing them to buy low and sell high to capture risk-free profits.

Spread Trading:

Spread trading is basically about taking opposite positions(put/call) in related derivatives contracts. For instance, a trader might buy a call option on a particular stock and simultaneously sell a call option on the same stock with a higher strike price. Spread trading aims to profit from the price difference between the two options.

Risk Considerations

While derivative trading can be lucrative, it is crucial to recognize and manage the associated risks:

Market Risk:

Derivative prices are influenced by market conditions and can be highly volatile. Unforeseen events, economic indicators, and geopolitical factors can significantly impact prices, leading to substantial gains or losses.

Counterparty Risk:

Derivatives are typically traded over-the-counter (OTC), which involves counterparty risk. If the other party defaults on their obligations, it can result in financial loss. Trading on regulated exchanges reduces this risk by providing clearing and settlement mechanisms.

Leverage Risk:

Derivatives often provide leverage, allowing traders to control a larger position with a smaller initial investment. Traders should move with caution and use risk management strategies in order to their capital because leverage does both boost profits and also amplify losses.

Derivative trading offers opportunities for profit, risk management, and market participation. By understanding the various derivative instruments, trading strategies, and associated risks, investors can make informed decisions. However, it is essential to gain knowledge, seek professional advice, and engage in thorough market analysis before venturing into derivative trading. With the right approach and risk management, derivative trading can be a powerful tool in the hands of skilled investors.
 

If you are looking for development services for a project related to derivatives trading, you may connect with our skilled web and mobile app developers to get started.

Substrate is a framework designed to make it easier for the developer to build custom blockchain applications. To use Substrate, developers can download the Substrate development kit and start building their own blockchain applications. The development kit includes tools for building, testing, and deploying Substrate-based applications.

In this blog post, we will be building a simple dApp which stores a value and multiplies it by some value whenever a function is executed. We will also write unit test cases for testing the contract.

Developing a dApp with Substrate

Installation:

Before starting the development process you need to have Rust installed. For installing Rust you can refer to this link. After installing rust you need to update your development environment to develop smart contracts. Follow the steps below to update your development environment.

• Add the rust-src compiler component: rustup component add rust-src
• Install the latest version of cargo-contract: cargo install --force --locked cargo-contract --version 2.0.0-rc
• Verify the installation and explore the commands available by running the following command: cargo contract --help
• Install the substrate contracts node: cargo install contracts-node --git https://github.com/paritytech/substrate-contracts-node.git --tag <latest-tag> --force --locked

Note - You can find the latest tag here.

• You can verify the installation by running the following command: substrate-contracts-node --version

Before moving forward make sure that you have followed all the above steps and that you have:

• Rust installed and set up your development environment.
• Substrate contracts node installed locally.

Building the Dapp:

Smart contracts on the substrate start as projects, which are created by using the cargo contract commands. Creating a new project provides us with the template starter files, we will modify these starter files to build the logic of our dApp.

• Open a terminal in your working directory and run the command to create a new project:

cargo contract new multiplicator

• Change to the new project directory and open the lib.rs file in a code editor.
• By default, the flipper smart contract source code in the template lib.rs file has instances of "flipper" modified to "multiplicator" (our project name).
• Replace the code in lib.rs file with the code below.

Now, let's understand the code and the test cases:

• Storage fields:

#[ink(storage)] - This macro indicates that the struct defined below defines the storage fields of the contract.

• Constructors:

#[ink(constructor)] - This macro indicates that it is a constructor. We have 2 constructors in our code. One [ default() ] which initializes the ‘value’ with a default value of 1. The other [ new(init_value: i32) ] which initializes the ‘value’ with the ‘init_value’ passed as parameter.

• Functions:

We have 3 public functions defined in the contract. #[ink(message)] - This macro indicates that it is a public function.

1. mul_by_2(&mut self) - It does not take any arguments. ‘mut’ indicates that this function can mutate the state variables of the contract. ‘self’ is passed to give reference to the contract. This function just simply multiples the current value by 2 and updates the ‘value’ with the result.
2. mul(&mut self, by: i32) - It takes one argument ‘by’ which is multiplied with the current value and updates the ‘value’ with the result.
3. get(&self) - It just simply returns the current value of ‘value’. Note that ‘mut’ keyword is not present in this function as this function does not change the state of the contract. 

• Tests:

#[cfg(test)] - This macro defines the test cases for the contract.

#[ink::test] - This macro defines the functions which test the contract.

If you have a project in mind and need information on getting started with dApp development with Substrate, you may connect with our skilled blockchain developers.
 

Decentralized exchanges (DEXs) are gaining in popularity as an alternative to centralized exchanges. Built using crypto exchange development services, they offer users more control over their assets and a higher level of security. Binance Smart Chain (BSC) is a decentralized platform that runs on a smart contract-enabled blockchain and is compatible with Ethereum Virtual Machine (EVM). In this blog post, we will guide you through the steps to develop your own DEX on Binance Smart Chain.

Develop a DEX on BSC 

Step 1: Familiarize yourself with Binance Smart Chain and its features

Before you start developing your DEX, it is important to understand the features and capabilities of Binance Smart Chain. BSC is a decentralized platform that allows users to create and execute smart contracts and decentralized applications (DApps). It is also compatible with Ethereum Virtual Machine (EVM), which means you can use Solidity, the primary language for Ethereum development, to write smart contracts for BSC.

One of the key advantages of BSC is its faster transaction times and lower fees compared to Ethereum. This makes it an attractive choice for developers looking to build DApps and DEXs that require fast and cost-effective transactions.

Step 2: Choose a programming language

To develop a DEX on Binance Smart Chain, you will need to use a programming language that is supported by BSC. Some popular options include Solidity (the primary language used for Ethereum development), Rust, and Go.

Before choosing a programming language, consider the following factors:

• Your level of experience and familiarity with the language
• The community support and resources available for the language
• The suitability of the language for the specific features and functionality you want to include in your DEX

Step 3: Set up a development environment

Before you start coding, you will need to set up a development environment on your local machine. This includes installing the necessary tools and libraries, such as a BSC-compatible blockchain client, a code editor, and a BSC testnet.

The testnet is a simulated blockchain environment that allows you to test your DEX without incurring real costs or risks. It is important to thoroughly test your DEX on the testnet before deploying it to the main BSC network.

Also, Explore | Atomic Swaps | The Future of Decentralized Exchanges (DEX)

Step 4: Design the DEX architecture

The next step is to decide on the overall structure and features of your DEX. This includes the trading engine, order matching algorithms, and user interface. You will also need to decide on the security measures you will implement to protect users' assets.

Some of the key features to consider when designing your DEX include:

• Trading pairs: The types of tokens that users can trade on your DEX
• Order types: The different types of orders that users can place, such as limit orders, market orders, and stop orders
• Order book: The list of buy and sell orders for a particular trading pair
• Matching algorithm: The algorithm that matches buy and sell orders to execute trades
• User accounts: The system for registering and authenticating users on your DEX

Step 5: Write the smart contracts

Once you have designed the architecture of your DEX, you can start writing the smart contracts that will power it. These contracts will handle tasks such as registering users, processing trades, and managing the order book.

It is important to thoroughly test and debug your smart contracts before deploying them to the BSC testnet or main network.

Also, Explore | Essentials to Consider for DEX Aggregator Development

Step 6: Test and deploy the DEX

After writing and debugging your smart contracts, you can deploy your DEX smart contracts on the BSC Mainnet.

If you are interested in developing a decentralized crypto exchange on BSC, or on any other efficient blockchain platform like Ethereum, Cardano, etc. connect with our skilled blockchain developers to get started.