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DEX Lesson Plan

Here is a 5-Day Lesson Plan for learning to use a cryptocurrency Decentralized Exchange (DEX).

This 5-day lesson is designed for aspiring blockchain developers with some coding experience. By the end of the week, participants will be able to trade on a DEX using a command-line script. Each day includes three core components:

Day 1: Introduction to DEX and Blockchain Foundations

Keywords

• Decentralized Exchange (DEX)
• Smart Contracts
• Liquidity Pools
• Automated Market Makers (AMM)
• Wallets

Reading

• CoinDesk: What is a Decentralized Exchange (DEX)?
• Investopedia: How Do Automated Market Makers Work?

Hands-on Lab

• Objective: Set up a local development environment for blockchain interactions.
• Tasks:
• Install and configure a blockchain development environment (e.g., Hardhat, Truffle, or Remix).
• Install a crypto wallet (like MetaMask) and create a seed phrase for testnet usage.
• Create and fund a wallet on a testnet (like Ropsten, Rinkeby, or Sepolia) using a faucet.
• Write a simple script to connect to a public blockchain API (like Infura or Alchemy) and check wallet balances.

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Day 2: Wallets, Private Keys, and Secure Interactions

Keywords

• Wallet Integration
• JSON-RPC
• Ethers.js
• Keystore
• Transaction Nonce

Reading

• Gemini: Understanding Private Keys and Wallets
• Ethereum Docs: How Gas Fees Work

Hands-on Lab

• Objective: Automate wallet creation and secure key management.
• Tasks:
• Write a script (using Web3.js or Ethers.js) to generate a new Ethereum wallet.
• Export and store the wallet’s private key securely (encrypted storage).
• Use the script to sign a test transaction and broadcast it to the blockchain using a testnet.
• Write a small function to calculate gas fees for a transaction.

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Day 3: Interacting with Smart Contracts and Liquidity Pools

Keywords

• ABI (Application Binary Interface)
• Contract Call
• Contract Write
• ERC-20
• Liquidity Providers
• Solidity
• Testnet
• Remix IDE

Reading

• Ethereum: Introduction to Smart Contracts
• Solidity Documentation

Hands-on Lab

• Objective: Write and deploy a simple smart contract to interact with a DEX protocol.
• Tasks:
• Write a simple Solidity smart contract that interacts with an existing DEX.
• Deploy the contract on a testnet (using Remix IDE or Hardhat).
• Use Web3.js or Ethers.js to call contract functions and query data from the blockchain.
• Write a script to read and update contract state (like checking liquidity balances or pool info).

Day 4: Advanced DEX Operations

Keywords

• Slippage
• Flash Swaps
• Liquidity Mining
• Impermanent Loss

Reading

• Binance Academy: What is Liquidity in Cryptocurrency?

Hands-on Lab

• Objective: Build and deploy a simple liquidity pool on a testnet.
• Tasks:
• Create a script to add liquidity to a decentralized exchange.
• Simulate trades and analyze the effects of slippage.
• Write functions to calculate impermanent loss.

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Day 5: Capstone Project - DEX Trading Script

Keywords

• Trading Bot
• Token Swapping
• Order Book
• Arbitrage

Reading

• CoinDesk: How to Build a Crypto Trading Bot

Hands-on Lab

• Objective: Build a command-line trading bot for a DEX.
• Tasks:
• Write a script to monitor token prices on a DEX.
• Build a bot that executes a token swap using specific conditions (like price thresholds).
• Test the bot on a testnet to verify trading logic.

See also: DEXs.