The problem Octaswap solves

Octaswap: Every Swap Makes an Impact

The DeFi landscape is revolutionary, with billions transacted daily. But what if our transactions could build more than just wealth?. What if they could build a better world. This is where we come in.

Octaswap is a decentralized exchange, where along with helping in seamlessly swapping tokens, we are also aiming to change life.

By donating just 3% of every swap value to our treasury, for helping underprivilegded women around the world with their education and well-being.

We are trying to make the world a better place with one swap at a time

Here's how we are doing it

1. A Stable Store of Value for Octant : oUSD

Pegged 1:1 with US Dollar to provide a reliable and stable asset in an otherwise volatile market, ensuring our users have a secure base for their transactions.

2. Seamless Swapping

Our users can easily exchange oUSD for ETH, BTC, and any other supported token within the ecosystem, and vice versa, and we are enabling this by using the Uniswap v4 hook for dynamic fee concept

3. A Public Goods Engine

This is where Octaswap truly shines. A 3% fee on every swap is dedicated entirely to public goods.

Challenges we ran into

1. Implementing Dynamic Fee Logic for Swaps

One of the major challenges was configuring a dynamic fee structure for each swap based on the liquidity conditions in the pool using Uniswap v4. Unlike static fee models, the dynamic fee mechanism required designing a logic layer that could adjust swap fees in real-time depending on liquidity depth and pool volatility.

2. Difficulty in Pegging oUSD to USD on Testnet

Since testnets lack real-world economic activity, maintaining a stable peg for oUSD (our stablecoin) proved challenging. Simulating a 1:1 USD peg required introducing manual control over minting, burning, and liquidity provisioning, which made the testing phase more complex and less reflective of mainnet behavior.

3. Frontend Integration with Smart Contracts

Integrating the deployed contracts with the frontend (built using Next.js and TypeScript) introduced several friction points. Handling asynchronous calls, contract events, and ensuring state synchronization between the blockchain and UI components demanded rigorous debugging.

4. Testing and Debugging Smart Contracts on Forked Networks

Deploying and testing on forked networks using Tenderly RPCs was not always seamless. Contract addresses occasionally desynced due to re-deployments, and simulating liquidity pool states on a forked environment required manual parameter adjustments.

5. Managing Token Approvals and User Allowances

During swap interactions, ensuring users had properly approved token allowances became a frequent pain point. Since both ERC20 approvals and swap execution required separate transactions, managing transaction flows and user experience around these approvals was an additional complexity.