What We Will Build

The goal of the book is to build a clone of Uniswap V3. However, we won’t build an exact copy. The main reason is that Uniswap is a big project with many nuances and auxiliary mechanics–breaking down all of them would bloat the book and make it harder for readers to finish it. Instead, we’ll build the core of Uniswap, its hardest and most important mechanisms. This includes liquidity management, swapping, fees, a periphery contract, a quoting contract, and an NFT contract. After that, I’m sure, you’ll be able to read the source code of Uniswap V3 and understand all the mechanics that were left outside of the scope of this book.

Smart Contracts

After finishing the book, you’ll have these contracts implemented:

  1. UniswapV3Pool–the core pool contract that implements liquidity management and swapping. This contract is very close to the original one, however, some implementation details are different and something is missed for simplicity. For example, our implementation will only handle “exact input” swaps, that is swaps with known input amounts. The original implementation also supports swaps with known output amounts (i.e. when you want to buy a certain amount of tokens).
  2. UniswapV3Factory–the registry contract that deploys new pools and keeps a record of all deployed pools. This one is mostly identical to the original one besides the ability to change owner and fees.
  3. UniswapV3Manager–a periphery contract that makes it easier to interact with the pool contract. This is a very simplified implementation of SwapRouter. Again, as you can see, I don’t distinguish “exact input” and “exact output” swaps and implement only the former ones.
  4. UniswapV3Quoter is a cool contract that allows calculating swap prices on-chain. This is a minimal copy of both Quoter and QuoterV2. Again, only “exact input” swaps are supported.
  5. UniswapV3NFTManager allows turning liquidity positions into NFTs. This is a simplified implementation of NonfungiblePositionManager.

Front-end Application

For this book, I also built a simplified clone of the Uniswap UI. This is a very dumb clone, and my React and front-end skills are very poor, but it demonstrates how a front-end application can interact with smart contracts using Ethers.js and MetaMask.