Oftentimes, UX and security issues often arise when signing transactions securely. For example, there needs to be an easier way to read transaction data when signing a transaction. To understand signature creation, verification and preventing replay attacks work, we will take a dive into the workings of two Ethereum Improvement Proposals - EIP 191 and EIP 712. In Ethereum, proof of ownership can be achieved using public and private key pairs to generate signatures. Imagine, appending your sig...

In this article, we will explore the entire Liquidity concepts of the Uniswap V3 protocol. Requisite to following along in this guide is a proper understanding of the Liquidity concepts in Uniswap V2. In the link attached, we touched some keywords like: reserve, price, shares, quote, current or total pool liquidity. We used the following Uniswap smart contracts to explain the highlighted concepts: Uniswap V2 Library, Uniswap V2 Pool contract, and the Uniswap V2 Router contract. To explain the...

Uniswap V2 is one of the most popular decentralized exchanges that relies on the Automated Market Maker (AMM) principles to facilitate interaction with decentralized pools of liquidity either by trading, or earning yield from liquidity provision. DeFi protocols like Uniswap rely on precise mathematical models to calculate user shares, distribute profits and maintain pool balance. Fundamental to these protocols is the concept of user shares — the proportional ownership of assets in a pool — an...

Permit2 is a token approval mechanism introduced to enhance the user experience of decentralized token transactions. It allows users to smart contracts without requiring on-chain approvals. It shifts the intensive work on to smart contracts. Users express their intents to modify their permissions. Usually in a normal ERC-20 transfer transaction, an approval is given to the spender smart contract by modify allowances. The token smart contract has an allowance mapping that manages every given a...