Objectives
BeamSwap set out to enhance its decentralized exchange by introducing the concentrated liquidity market maker (CLAMM) model. The main objectives were to:
- Optimize Liquidity Allocation: Improve capital efficiency by concentrating liquidity within specific price ranges, reducing unused liquidity.
- Boost Earnings for LPs: Provide liquidity providers (LPs) with higher yields through more efficient capital use and lower slippage.
- Improve Trade Execution: Enhance trade execution by reducing slippage, ensuring better value for trades.
- Leverage Moonbeam’s Performance: Utilize Moonbeam's fast transaction speeds and low gas fees to offer a cost-effective and seamless trading experience.
- Maintain Decentralization: Preserve BeamSwap's decentralized nature while delivering greater value to users and liquidity providers.
Solution
The BeamSwap DEX was designed with several key enhancements to provide efficient liquidity management and low slippage:
- Concentrated Liquidity Model
We implemented the Uniswap v3 model of concentrated liquidity, allowing LPs to allocate their liquidity to specific price ranges instead of providing liquidity across the entire price curve. This enables better capital efficiency and more precise control over where liquidity is deployed. - Customizable LP Fee Structure
BeamSwap introduced a customizable fee structure for LPs, allowing them to choose the fee tier based on the level of risk they are willing to take. This flexibility ensures that LPs can optimize their returns based on market conditions and their risk preferences. - Optimized Gas Fees and Transaction Speed
Leveraging Layer-2 solutions for certain transaction types, BeamSwap aimed to reduce gas costs and transaction times, offering a more affordable and faster trading experience for users. - User-Friendly Interface
A streamlined and intuitive interface was designed for BeamSwap, allowing users to easily navigate through liquidity provision, token swaps, and portfolio management. Clear and simple data displays help users make informed decisions without being overwhelmed by complex DeFi concepts. - Incentive Programs
To attract liquidity providers, BeamSwap introduced yield farming incentives, offering additional rewards in the form of governance tokens. This approach helped incentivize early LP adoption and boost liquidity on the platform.
Solution Overview
To achieve BeamSwap’s objectives, we forked and customized the battle-tested Uniswap v3 codebase, which provided a reliable foundation for implementing the concentrated liquidity market maker (CLAMM) model. Leveraging this proven code allowed BeamSwap to adopt a robust and scalable solution, ensuring both security and high performance. The solution was developed with the following scope and features:
Scope
- Smart Contracts: Forked and customized from Uniswap v3 to efficiently manage liquidity pools, range orders, and fee structures.
- Backend: Designed to provide data via subgraphs and APIs, delivering transaction data, liquidity pool information, and other key metrics to the frontend.
- Frontend: A streamlined and user-friendly interface to facilitate seamless interaction with the platform, ensuring an intuitive experience for both traders and liquidity providers.
Key Features
- CLAMM: Liquidity concentrated within custom price ranges to increase capital efficiency and reduce slippage.
- Non-Fungible Liquidity: Liquidity positions represented as non-fungible tokens (NFTs), providing LPs with more control over their positions.
- Range Orders: Liquidity providers can set specific price ranges to provide liquidity, enabling more granular control over liquidity deployment.
- Multiple Fee Tiers: Support for multiple fee tiers, giving liquidity providers flexibility to optimize their yields based on varying risk preferences.
- Advanced Oracles: Integration of reliable oracles to ensure accurate price feeds and support efficient transaction execution.
This approach delivered a robusg and scalable DEX solution, enabling BeamSwap to offer greater capital efficiency, improved trading performance, and enhanced LP returns.
The Process
Analytics
Our journey began by diving deep into the Uniswap v3 codebase—a battle-tested platform known for its robustness and reliability. The goal was clear: adapt its powerful features to meet the unique needs of BeamSwap. We thoroughly examined the code’s architecture and identified the best way to customize it for Client’s functional requirements of CLAMM dex development.
To ensure every customization was perfectly aligned with BeamSwap's goals, we crafted comprehensive documentation. This detailed blueprint included technical specifications outlining the necessary adjustments across smart contracts, the frontend, and backend systems. Every decision was backed by data and insights, ensuring that the solution would meet all functional and performance requirements.
Development
With a solid plan in place, we set out to fork the Uniswap v3 codebase—starting with the smart contracts, frontend, and backend. This gave us the flexibility to build the platform BeamSwap envisioned, while retaining the security and efficiency of the original framework.
Next came the customization phase. We tailored the smart contracts to accommodate concentrated liquidity, range orders, and multiple fee tiers. Our team worked closely to refine each element, ensuring that the platform would offer enhanced capital efficiency, improved slippage, and higher yields for liquidity providers.
After completing the core development, we moved to testnet deployment. This was a critical step: we simulated real-world conditions to test performance and user interactions, making adjustments where needed to fine-tune the platform. This iterative process ensured that each feature worked flawlessly before going live.
Quality Assurance
With the foundation laid and the features in place, we shifted focus to quality assurance. We conducted a comprehensive round of testing to guarantee that BeamSwap met the highest standards for performance, security, and usability.
- Smart Contract Testing: Our team thoroughly tested the customized smart contracts in various scenarios to ensure they operated securely and efficiently.
- Frontend & Backend Testing: We ran extensive tests to ensure seamless integration between the frontend interface, backend APIs, and the blockchain layer. Every interaction was scrutinized for a flawless user experience.
- User Acceptance Testing (UAT): Finally, we worked hand-in-hand with BeamSwap’s team to confirm that the platform’s final version was intuitive, reliable, and aligned with their goals. The result was a platform ready for real-world use.
The Results
The implementation of the concentrated liquidity automated market maker (CLAMM) model on BeamSwap has positioned the platform for potential growth and improvement in key areas. By forking and customizing the battle-tested Uniswap v3 codebase, BeamSwap introduced several important features designed to enhance both the user and liquidity provider experience.
Key Outcomes:
- Improved Capital Efficiency: The transition to a CLAMM model allows liquidity to be concentrated within specific price ranges, enabling more efficient use of capital. This could result in higher liquidity utilization and more effective deployments of capital for liquidity providers.
- Lower Slippage: The optimized liquidity structure is designed to reduce slippage, which may lead to better trade execution and more favorable outcomes for traders using the platform.
- Potential for Higher Yields: With CLAMM, liquidity providers may experience the opportunity for better returns by depositing less capital, potentially increasing yields in comparison to more traditional AMM models.
- Enhanced User Experience: The front-end interface, built with simplicity and user-friendliness in mind, is expected to improve the overall interaction for both traders and liquidity providers, ensuring smooth navigation and more efficient trading activities.
- Scalability and Performance: Leveraging Moonbeam's blockchain, BeamSwap benefits from faster transaction speeds and lower gas fees, setting the foundation for scalability as the platform grows and handles higher volumes of activity.
While these features are designed to improve liquidity efficiency, trading execution, and overall platform performance, BeamSwap’s real-world results will continue to evolve as the platform grows and attracts more users and liquidity providers.
