🛡️ SwapShield — DeFi Slippage & Price Impact Guard

A safety layer that prevents catastrophic swap losses in DeFi. SwapShield is an early-stage DeFi risk engine focused on pre-trade protection.

---

🎥 Demo

---

🚨 The Problem

In AMM-based DEXs (like Uniswap), large swaps can silently suffer from extreme price impact due to limited liquidity.

Users often:

• Execute swaps without understanding slippage
• Lose a significant portion of their funds
• Have no clear warning before execution

Real-world incidents have shown users losing 50–90%+ of value in a single trade.

---

💡 The Solution

SwapShield simulates swaps before execution and provides real-time risk analysis:

• 📊 Accurate price impact calculation (execution-based)
• 💧 Liquidity usage detection
• ⚠️ Clear risk classification system
• 🧠 Human-readable warnings for better decision making

---

⚙️ How It Works

SwapShield uses a constant product AMM model:

• Applies standard 0.3% fee (Uniswap-style)
• Calculates expected output (amountOut)
• Computes execution price vs spot price
• Derives true price impact
• Evaluates liquidity consumption

---

📈 Example Output

----------------------------------------
=== Large Trade ===
Token In: 50000.00 USDT
Amount Out: 120.500000 AAVE
Price Impact: 65.30%
Liquidity Usage: 50.00%
Risk Level: 🔴 CRITICAL
Message: You may lose more than 50% due to extreme price impact | Trade consumes a large portion of pool liquidity
🚨 WARNING: This trade is extremely unsafe!
----------------------------------------

---

🧠 Key Features

🔍 Pre-Trade Simulation

Simulate swaps before execution to prevent unexpected losses.

📊 Execution-Based Price Impact

Uses execution price, not just pool price — matching real DEX behavior.

💧 Liquidity Awareness

Detects when a trade consumes a significant portion of pool liquidity.

⚠️ Risk Engine

Classifies trades into:

• 🟢 LOW
• 🟡 MEDIUM
• 🟠 HIGH
• 🔴 CRITICAL

🧩 Modular Architecture

Clean separation of:

• AMM logic
• Simulation engine
• Risk analysis

---

🏗️ Project Structure

swapshield/
├── cmd/            # Entry point
├── internal/
│   ├── amm/        # AMM math (constant product formula)
│   ├── simulation/ # Swap simulation engine
│   ├── risk/       # Risk evaluation logic
│   ├── models/     # Data structures
│   └── dex/        # DEX data source (mock / future real integration)

---

🚀 Getting Started

1. Clone the repo

git clone https://github.com/OprekerSejati/SwapShield.git
cd SwapShield

2. Run the simulation

go run cmd/main.go

---

🎯 Use Cases

• 🛡️ Protect users from high-slippage trades
• 📊 Integrate into DEX frontends
• 🤖 Power trading bots with risk awareness
• 🧪 Simulate large trades safely
• 🧱 Build DeFi safety infrastructure

---

🤝 Contributing

Contributions are welcome!

Feel free to:

• Open issues
• Suggest improvements
• Submit pull requests

---

🌐 Roadmap

• Integrate real on-chain data (Uniswap pools)
• REST API for external integrations
• Frontend dashboard
• Multi-chain support
• Trade splitting optimization

---

🔌 Future Integrations

SwapShield is designed to evolve into an API that can be integrated into:

• 🧩 DEX frontends (pre-trade risk warnings)
• 🤖 Trading bots (risk-aware execution)
• 💼 Portfolio dashboards
• 🛡️ Wallet safety layers

The goal is to provide a reusable risk engine across the DeFi ecosystem.

---

🤝 Why This Matters

DeFi is powerful — but unsafe UX leads to user losses.

SwapShield can prevent losses of up to 90%+ in extreme low-liquidity swaps.

SwapShield aims to:

Make every swap transparent, predictable, and safe

---

👤 Author

GitHub: https://github.com/OprekerSejati

---

⭐ Support

If you find this useful, consider giving it a star ⭐