The developer reading this should be familiar with the following terms:
Goal: To Build a DEX that any trader is able to short assets on easily utilizing a Custom set of ERC-20 tokens that are inverse to the current market price of an existing asset.
Example: Lets say that AAVE is currently trading at 300$. A custom ERC-20 token would be created for use on this site(18 decimal places). Lets say we choose the starting price of the ERC-20 tokens price to be .008000000000000000.
If AAVE goes up in price then this custom ERC-20 token we created, its price would fall in line with the current value drop of AAVE. If AAVE went up 10% then this asset would go down 10%. If AAVE went down in price 25% then this Custom token would go up in price per token by 25%.
The idea is that a trader can easily buy those custom Invert tokens(this is where the AMM comes in to determine the price of the custom tokens) (the existing tokens- AAVE- I suppose we can pull their price from UNISWAP) from any liquidity pool created and cash them back in for profit at any pool on the site. Please let me know if you need more detail I can possibly draw a diagram!
Please keep in mind, once this project comes to completion I will need to keep you on PERMANENT retainer for upgrades and modifications to the code so this has the potential to be an ongoing project from here on out.
With that being said, these are the requirements for the project:
Full Front END UI/UX that mirrors UNISWAP. I have not chosen colors or logo yet.....
Full backend code that supports the following: (fyi- UNISWAP source code is available on Github- so most of this is probably done for you already)
1. The ability for traders to create liquidity pools( they must NOT be allowed to supply any pair they want for the pools. They must only be allowed to supply one of our custom created short tokens along with another asset of their choosing
2. Traders supplying liquidity must be able to earn fees from the pool just as on UNISWAP.
3. The creation of some sort of AMM that determines the price of the ERC-20 tokens we will be creating in relation to the inverse of the current token.
4. Can we pull prices for existing tokens from UNISWAP?(ex- price of ETH) and use those prices as the base for the inverse price) and the price shown on the site for ETH.
5. I can use a generator to create the Custom ERC-20 tokens if you do not need to create them with any specific code. This will save you time and me money! let me know your thoughts on this.
I think that covers the bulk of things. Please let me know if you have any questions as I will be happy to elaborate