ExchangeDevelopment Source Code Sharing: Building High PerformanceDigital CurrencyTrading Platforms

Author:Administra
Exchange Development Engineer Contact: t.me/dexdao123

Spot TradingIt is a way to trade digital currencies based on an exchange and is the most common type of trading in digital currency trading. In spot trading, the two parties to the transaction trade at the current market price and settle instantly after completing the sale and purchase transaction, from which the exchange receives a certain commission.

The following are the steps and key technical points for the development of spot transactions.

1. 1. Trading Pair Creation

First of all, you need to create the corresponding trading pair on the exchange, which usually includes information about the name and price of the trading currency.

1. 2. Account System

Set up the exchange's account system, including user registration, login, KYC authentication, identity verification and other functions. These functions can be performed using off-the-shelf authentication and KYC service providers, such as Coinbase.

1. 3. Front-end design

Designing a front-end that is easy to use and attractive to users usually requires including features such as price charts for trading pairs, buy and sell screens, order books, historical trades, etc.

1. 4. Order Matching

When a userPlace an orderWhen an order is matched, order matching is required. After matching the corresponding order, the exchange will automatically execute the transaction. The design of the aggregation engine is involved here, and usually an off-the-shelf aggregation engine can be used, such as the open source Match-Engine.

1. 5. Payment settlement

Payments need to be settled after the transaction is completed. Multiple payment methods need to be supported here, including digital currency payments and fiat currency payments. Digital currency payments are usually settled using blockchain technology.

The following is a sample program code for spot trading, developed using Node.js and Web3.js.

const Web3 = require('web3');

// Set the Ethernet network connection address
const provider = new Web3.providers.HttpProvider("https://mainnet.infura.io/v3/YOUR_PROJECT_ID");

// Create an EtherChannel instance
const web3 = new Web3(provider);

// Define the transaction pair address
const pairAddress = '0x1f9840a85d5af5bf1d1762f925bdaddc4201f984';

// Get the pair contract instance
const pairContract = new web3.eth.Contract(pairABI, pairAddress);

// get the pair price
pairContract.methods.getReserves().call()
  .then(reserves => {
    const token0 = reserves[0];
    const token1 = reserves[1];
    const price = token1 / token0;
    console.log(`The price of token1 is ${price} token0.`);
  })
  .catch(error => console.error(error));

In the sample application above, we have used Web3.js to get the price information of the transaction pair and printed it out. HerepairABIis the ABI code of the trading pair contract, you can find the corresponding ABI code on websites such as Etherscan.

In the development of spot trading, the following functions need to be implemented.

1. 1. Trading pair creation and management: The exchange needs to support trading of multiple digital currencies, so it needs to implement trading pair creation and management functions, including support for limit orders and market orders.
   2. Order creation and management: The exchange needs to support users to create orders, including limit orders and market orders. Management of orders includes inquiry, modification and cancellation.
   3. Record and management of transaction orders: The exchange needs to record the transaction of each transaction, including information such as transaction time, price and quantity. The management of transaction orders includes operations such as inquiry and statistics.
   4. Asset management and clearing: Exchanges need to manage users' assets, including digital currencies and fiat currencies, etc. After the transaction is completed, the assets need to be cleared and settled operation.
   5. Push and display of quotes: The exchange needs to push the latest quotation data, including bid and ask prices, volume and other information. It also needs to display quotation charts and K-line charts, etc.

The following is a simple implementation of the program code for spot trading, in Solidity language.

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

contract SpotTrading {
    // Trading pair structure
    struct TradingPair {
        address tokenA;
        address tokenB;
        uint256 price;
        uint256 volume;
    }

    // Store a list of trading pairs
    TradingPair[] public tradingPairs;

    // Create trading pairs
    function createTradingPair(address _tokenA, address _tokenB, uint256 _price, uint256 _volume) public {
        TradingPair memory pair = TradingPair(_tokenA, _tokenB, _price, _volume);
        tradingPairs.push(pair);
    }

    // Query the list of trading pairs
    function getTradingPairs() public view returns (TradingPair[] memory) {
        return tradingPairs;
    }

    // Create an order
    function createOrder(address _tokenA, address _tokenB, uint256 _price, uint256 _volume) public {
        // TODO: Create and store orders
    }

    // Query the order list
    function getOrderList(address _tokenA, address _tokenB) public view returns (/* TODO: order list */) {
        // TODO: Query the order list
    }

    // Cancel the order
    function cancelOrder(address _tokenA, address _tokenB, uint256 _orderId) public {
        // TODO: Implement the cancellation of an order
    }

    // Trade
    function trade(address _tokenA, address _tokenB, uint256 _price, uint256 _volume) public {
        // TODO: Execute and clear the trade
    }

    // Query the quote
    function getQuote(address _tokenA, address _tokenB) public view returns (uint256, uint256) {
        // TODO: Querying the quotes
    }
}

The above is a simple source code sharing, the specific business needs to be developed again according to the actual situation.Dexnav team specializes in developing blockchain projects, and has more than 5 years of experience in blockchain project development. We have more than 5 years of experience in blockchain project development. We welcome you to contact our team if you need.

Exchange Development Engineer Contact: t.me/dexdao123