Solana AMM (Automated Market Maker)

A decentralized Automated Market Maker (AMM) built on Solana using the Anchor framework. This AMM allows users to create liquidity pools, provide liquidity, and swap tokens with constant product pricing.

🚀 Features

• Initialize Pool: Create new AMM pools with custom parameters
• Add Liquidity: Deposit tokens to earn trading fees
• Remove Liquidity: Withdraw tokens from pools
• Token Swaps: Exchange tokens using constant product formula
• Fee Management: Configurable trading fees for pool creators

📋 Prerequisites

Before you begin, ensure you have the following installed:

• Node.js (v18+ recommended)
• Rust (latest stable version)
• Solana CLI (v1.18+)
• Anchor CLI (v0.31.1)

🛠️ Installation

1. Clone the repository

   git clone <your-repo-url>
   cd amm

2. Install dependencies

   cd tests
   npm install

3. Configure Solana CLI

   # Set to localnet for development
   solana config set --url localhost
   
   # Generate a new keypair (if needed)
   solana-keygen new

🔧 Building

Build the Anchor program:

anchor build

🧪 Testing

Local Testing

1. Start local validator

   solana-test-validator

2. Run tests

   anchor test
   # or
   cd tests && npm run test:local

Network Testing

# Test on devnet
npm run test:devnet

# Test on mainnet (use with caution)
npm run test:mainnet

🚀 Deployment

Local Deployment

anchor deploy
# or
npm run deploy:local

Devnet Deployment

npm run deploy:devnet

Mainnet Deployment

npm run deploy:mainnet

📖 Usage

Core Instructions

1. Initialize Pool

Creates a new AMM pool with specified parameters.

await program.methods
  .initialize(seed, fee, authority)
  .accounts({
    // ... accounts
  })
  .rpc();

Parameters:

• seed: Unique identifier for the pool
• fee: Trading fee (in basis points, e.g., 30 = 0.3%)
• authority: Optional pool authority

2. Add Liquidity (Deposit)

Provides liquidity to the pool in exchange for LP tokens.

await program.methods
  .deposite(amount, maxX, maxY)
  .accounts({
    // ... accounts
  })
  .rpc();

Parameters:

• amount: Amount of LP tokens to mint
• maxX: Maximum amount of token X to deposit
• maxY: Maximum amount of token Y to deposit

3. Remove Liquidity (Withdraw)

Burns LP tokens to withdraw underlying assets.

await program.methods
  .withdraw(amount, minX, minY)
  .accounts({
    // ... accounts
  })
  .rpc();

Parameters:

• amount: Amount of LP tokens to burn
• minX: Minimum amount of token X to receive
• minY: Minimum amount of token Y to receive

4. Swap Tokens

Exchanges one token for another using the constant product formula.

await program.methods
  .swap(isX, amountIn, minAmountOut)
  .accounts({
    // ... accounts
  })
  .rpc();

Parameters:

• isX: true to swap X for Y, false to swap Y for X
• amountIn: Amount of input tokens
• minAmountOut: Minimum amount of output tokens (slippage protection)

📁 Project Structure

amm/
├── Anchor.toml                 # Anchor configuration
├── Cargo.toml                  # Rust workspace configuration
├── programs/amm/               # Main program directory
│   ├── src/
│   │   ├── lib.rs             # Program entry point
│   │   ├── instructions/      # Instruction handlers
│   │   │   ├── initialize.rs  # Pool initialization
│   │   │   ├── deposite.rs    # Liquidity deposit
│   │   │   ├── withdraw.rs    # Liquidity withdrawal
│   │   │   └── swap.rs        # Token swapping
│   │   ├── states/            # Program state definitions
│   │   │   └── config.rs      # Pool configuration
│   │   ├── errors.rs          # Custom error definitions
│   │   └── constant.rs        # Program constants
└── tests/                     # TypeScript tests
    ├── ammTest.ts            # Main test suite
    ├── package.json          # Test dependencies
    └── tsconfig.json         # TypeScript configuration

🔧 Configuration

Anchor.toml

• Anchor Version: 0.31.1
• Default Cluster: Localnet

Environment Setup

1. Update Anchor.toml with your desired cluster
2. Configure wallet path in Anchor.toml
3. Ensure sufficient SOL balance for deployments

🧪 Example Test Flow

The test suite demonstrates a complete AMM workflow:

1. Setup: Create token mints and accounts
2. Initialize: Create AMM pool with 0.3% fee
3. Deposit: Add initial liquidity
4. Swap: Execute token swaps
5. Withdraw: Remove liquidity

⚠️ Important Notes

• This is a development version - audit before mainnet use
• Contains a typo: deposite should be deposit (consistent in codebase)
• Always test thoroughly on devnet before mainnet deployment
• Ensure proper slippage protection in production

🤝 Contributing

1. Fork the repository
2. Create a feature branch
3. Make your changes
4. Run tests: anchor test
5. Submit a pull request

📄 License

This project is licensed under the ISC License.

🔗 Resources

• Anchor Documentation
• Solana Documentation
• SPL Token Documentation

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⚡ Quick Start:

anchor build && anchor test