🪝 HookSwap - Token-2022 AMM with Transfer Hooks

A revolutionary Automated Market Maker (AMM) that enables trading of Token-2022 tokens with active transfer hooks on Solana. This project solves the critical limitation where major AMMs don't support Token-2022 with transfer hooks, unlocking the full potential of programmable tokens for DeFi.

🌟 Features

✅ Token-2022 Integration

• Transfer Hook Support: Full integration with Token-2022 transfer hooks
• KYC Validation: Built-in KYC compliance through transfer hooks
• Transfer Limits: Configurable daily and per-transaction limits
• Whitelisted Hooks: Secure whitelist system for approved hook programs

✅ AMM Functionality

• Pool Creation: Create liquidity pools for any Token-2022 token
• Swapping: Token-to-SOL and SOL-to-token swaps with hook validation
• Liquidity Management: Add and remove liquidity with LP token rewards
• Fee System: 0.3% trading fee with proper distribution

✅ Security & Compliance

• Hook Validation: Every transfer is validated through the hook program
• KYC Enforcement: Users must have valid KYC status to transfer tokens
• Transfer Limits: Prevents abuse through configurable limits
• Authority Management: Secure program authority management

✅ User Experience

• Modern UI: Beautiful, responsive interface built with Next.js
• Wallet Integration: Support for Phantom, Solflare, and other Solana wallets
• Real-time Updates: Live pool data and transaction status
• Error Handling: Comprehensive error messages and validation

🏗️ Architecture

┌─────────────────┐    ┌─────────────────┐    ┌─────────────────┐
│   Frontend      │    │   AMM Program   │    │   Hook Program  │
│   (Next.js)     │◄──►│   (Anchor)      │◄──►│   (Anchor)      │
└─────────────────┘    └─────────────────┘    └─────────────────┘
         │                       │                       │
         │                       │                       │
         ▼                       ▼                       ▼
┌─────────────────┐    ┌─────────────────┐    ┌─────────────────┐
│   Wallet        │    │   Token-2022    │    │   KYC Data      │
│   Connection    │    │   Program       │    │   Storage       │
└─────────────────┘    └─────────────────┘    └─────────────────┘

🚀 Quick Start

Prerequisites

• Rust (latest stable)
• Solana CLI (latest)
• Anchor CLI (latest)
• Node.js (v18 or later)
• Yarn or npm

1. Clone and Setup

git clone <repository-url>
cd token2022-hook-amm

2. Build Programs

# Build all programs
anchor build

# Or build individually
cd programs && anchor build
cd ../hook && anchor build

3. Deploy to Devnet

# Deploy AMM program
cd programs
anchor deploy --provider.cluster devnet

# Deploy Hook program
cd ../hook
anchor deploy --provider.cluster devnet

4. Update Program IDs

Update the program IDs in Anchor.toml and hookswap/lib/anchor.ts with the deployed addresses.

5. Initialize Hook Program

cd hook
anchor test --skip-local-validator

6. Start Frontend

cd hookswap
yarn install
yarn dev

Visit http://localhost:3000 to access the application.

📖 Usage Guide

Creating a Hooked Token

1. Connect Wallet: Connect your Solana wallet (Phantom, Solflare, etc.)
2. Navigate to "Create Token": Click on the "Create Token" tab
3. Fill Token Details:
   • Token Name: e.g., "My Awesome Token"
   • Token Symbol: e.g., "MAT"
   • Decimals: Usually 9 for most tokens
   • Initial Supply: Total tokens to mint
4. Create Token: Click "Create Hooked Token"
5. Verify: The token will be created with transfer hooks enabled

Creating a Liquidity Pool

1. Navigate to "Create Pool": Click on the "Create Pool" tab
2. Select Token: Choose your hooked token from the dropdown
3. Add Initial Liquidity: Specify the amount of tokens and SOL to add
4. Create Pool: Click "Create Pool"
5. Confirm: The pool will be created and you'll receive LP tokens

Swapping Tokens

1. Navigate to "Swap": Click on the "Swap" tab
2. Select Tokens: Choose the token you want to swap and SOL
3. Enter Amount: Specify the amount to swap
4. Review: Check the exchange rate and fees
5. Swap: Click "Swap" to execute the transaction

Managing Liquidity

1. Navigate to "Pool": Click on the "Pool" tab
2. Add Liquidity:
   • Select your pool
   • Enter token and SOL amounts
   • Click "Add Liquidity"
3. Remove Liquidity:
   • Select your pool
   • Enter LP token amount
   • Click "Remove Liquidity"

🔧 Development

Project Structure

token2022-hook-amm/
├── programs/                 # AMM Anchor workspace
│   ├── programs/amm/        # AMM program (Rust)
│   ├── tests/               # AMM tests (TypeScript)
│   └── migrations/          # Deployment scripts
├── hook/                    # Hook Anchor workspace
│   ├── programs/hook/       # Hook program (Rust)
│   ├── tests/               # Hook tests (TypeScript)
│   └── migrations/          # Deployment scripts
├── hookswap/                # Frontend application
│   ├── app/                 # Next.js pages
│   ├── components/          # React components
│   ├── hooks/               # Custom React hooks
│   ├── lib/                 # Utility functions
│   └── types/               # TypeScript types
└── README.md               # This file

Running Tests

# Test AMM program
cd programs
anchor test

# Test Hook program
cd ../hook
anchor test

# Test frontend (if applicable)
cd ../hookswap
yarn test

Local Development

# Start local validator
solana-test-validator

# In another terminal, build and deploy
anchor build
anchor deploy

# Start frontend
cd hookswap
yarn dev

🔒 Security Features

Transfer Hook Validation

• Every token transfer is validated through the hook program
• KYC status is checked before allowing transfers
• Transfer limits are enforced per user and per mint
• Failed validations prevent the transfer from completing

Whitelisted Hook Programs

• Only approved hook programs can be used with the AMM
• Prevents malicious hook programs from being used
• Easy to add new approved programs to the whitelist

Authority Management

• Secure program authority management
• Ability to update authorities when needed
• Timestamp tracking for all authority changes

🌐 Deployment

Devnet Deployment

# Set cluster to devnet
solana config set --url devnet

# Deploy programs
anchor deploy --provider.cluster devnet

# Update program IDs in configuration files

Mainnet Deployment

# Set cluster to mainnet
solana config set --url mainnet-beta

# Deploy programs (ensure proper testing first)
anchor deploy --provider.cluster mainnet-beta

# Update program IDs and frontend configuration

📊 Performance

• Transaction Speed: Optimized for fast execution
• Gas Efficiency: Minimal compute units for hook validation
• Scalability: Supports multiple tokens and pools
• Reliability: Robust error handling and recovery

🤝 Contributing

1. Fork the repository
2. Create a feature branch (git checkout -b feature/amazing-feature)
3. Commit your changes (git commit -m 'Add amazing feature')
4. Push to the branch (git push origin feature/amazing-feature)
5. Open a Pull Request

Built with ❤️ for the Solana ecosystem