NeoNexus

In the dynamic world of cryptocurrency trading, Automated Market Makers (AMMs) have been a cornerstone, enabling liquidity and facilitating decentralized exchanges. However, AMMs often struggle with issues like price slippage, impermanent loss, and limited order types, which can deter sophisticated trading strategies and impact market efficiency.

Neon Nexus, a fully on-chain order book exchange, offers a transformative solution by leveraging the power of Neon's advanced blockchain technology. Our platform is designed to overcome the inherent challenges of AMMs by implementing a traditional order book model, enabling precise market orders, limit orders, and more complex trading strategies that traders demand.

By harnessing Neon's ability to handle a high volume of transactions at minimal cost, Neon Nexus provides a seamless trading experience that is not only fast and efficient but also cost-effective. This approach ensures greater market depth, improved price discovery, and enhanced stability, making Neon Nexus an ideal platform for both casual traders and institutional investors seeking reliability and performance in their trading activities.

Experience the future of trading with Neon Nexus—where innovation meets liquidity.

In order to make the site, I used scaffold-eth 2 as my initial template due to the quick MVP properties. It is set up to connect to my metamask and is easy to adapt with new chains. I then added the Neon devnet to the available networks and made it the main target network for the site.

After setting up scaffold-eth, I used openzeppelins contract creator to create two ERC20 token contracts that I could trade with in my exchange pool. I called these NeonGreen and NeonOrange in order to keep with the theme.

Once I had the token contracts set up and minted myself some tokens, I was able to play around with the trading features. I wanted to keep my MVP as simple as possible as I did not have much time around my MSc workload this week.

The OrderBook contract is set up as such. There are two tokens allowed to be traded: NeonGreen and NeonOrange. A trader can make two possible orders (A for B or B for A). A is NeonGreen and B is NeonOrange. The user says they are willing to trade x greens for y oranges and is GUARANTEED that price. This solves the problem of slippage common in current AMM exchange models. When a trade is made, the contract searches linearly through all the other orders placed beforehand. If there is a trade that makes both users happy, the trade is executed and the tokens are transferred from both accounts.

This is a very simple implementation of an order book but it has all the fundamental components that are needed to build upon (trade placement and trade execution) and the order book is entirely decentralized. This method of trading is only made possible due to cheap trades and quick transaction times provided by the neon network.

The order book method is tried and true in terms of providing stable yield for market makers and reliable trade execution prices for traders. Making this method decentralized only allows for a historically proven model to be pulled into the future.