AMM

A decentralized Automated Market Maker built on Solana using the Anchor framework. It implements the constant product formula (x * y = k) to allow users to swap between two tokens without an order book or centralized counterparty.

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What It Does

• Creates a liquidity pool for any two SPL token pairs
• Allows liquidity providers to deposit tokens and receive LP tokens representing their share
• Allows users to swap one token for another with price determined by the pool ratio
• Allows liquidity providers to withdraw their share by burning LP tokens

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Code Structure

programs/amm/src/
├── lib.rs              — program entry point, instruction routing
├── instructions/
│   ├── initialize.rs   — creates the pool and mints LP token
│   ├── deposit.rs      — adds liquidity, mints LP tokens to provider
│   ├── withdraw.rs     — burns LP tokens, returns underlying assets
│   └── swap.rs         — executes token swap using constant product formula
└── state/
    └── config.rs       — pool config account storing token mints and fees

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Prerequisites

• Rust
• Solana CLI
• Anchor CLI
• Node.js (v18 or above)
• Yarn

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How to Run

cd AMM
yarn install
anchor build
anchor test

Make sure your Solana CLI is set to localnet:

solana config set --url localhost

Start a local validator if not already running:

solana-test-validator