The project in five facts.
Challenge, approach and results.
The diploma thesis addresses the development of a decentralised finance (DeFi) web application, the purpose of which is to demonstrate the connection between the theoretical foundations of decentralised finance and the practical implementation of a functioning prototype solution. The theoretical part presents the basic concepts of blockchain technology, smart contracts, decentralised finance, key functionalities of DeFi applications and security risks that accompany the development of such systems. In the practical part, a prototype DeFi web application was developed, based on the Ethereum network and incorporating several functional modules. The results of the diploma thesis show that it is possible, even within a prototype solution, to successfully integrate several key DeFi functionalities into a unified system.
Problem
The diploma thesis addresses the development of a decentralised finance (DeFi) web application, the purpose of which is to demonstrate the connection between the theoretical foundations of decentralised finance and the practical implementation of a functioning prototype solution. The theoretical part presents the basic concepts of blockchain technology, smart contracts, decentralised finance, key functionalities of DeFi applications and security risks that accompany the development of such systems. Particular emphasis is placed on the role of the Ethereum network, the ERC-20 standard, automated market makers (AMM), staking mechanisms, yield farming approach and the importance of security in the development of decentralised applications.
Solution and Method
In the practical part, a prototype DeFi web application was developed, based on the Ethereum network and incorporating several functional modules. The core of the system consists of smart contracts developed in the Solidity programming language. An ERC-20 token contract, a liquidity pool contract with DEX logic, a staking contract and a yield farming contract were implemented.
The user interface was developed using the React framework and the TypeScript programming language, with particular attention paid to modularity, transaction transparency and secure user interaction. Web3 integration was established to connect the frontend, crypto wallet and blockchain network, whilst a supporting backend layer was also included, intended for data aggregation and preparation of user analytics displays. An important part of the diploma thesis is also the security aspect of development.
Basic security mechanisms were used in the implementation, such as data validation, protection against reentrancy attacks, separation of approval and action transactions, use of verified libraries and verification of the correct network. In this way, it was possible to reduce some of the key risks characteristic of the DeFi environment. The application was tested in a local development environment using the Hardhat tool, and unit tests of smart contracts, frontend verification, user testing and basic security analysis were carried out.
Results
The results of the diploma thesis show that it is possible, even within a prototype solution, to successfully integrate several key DeFi functionalities into a unified system.
Module, programme and stories.
Your diploma project for a real company.
A diploma thesis at Academia solves a challenge from a company – often the one where you do your 800 hours of placement. Read about the Razvoj aplikacij module or book a consultation.