Document Docker Compose Setup for Full Local Stack

[miss-yusrah]

Labels: documentation 200pts

Background:
docker-compose.yml exists but there's no guide for running the complete local development stack (contract + backend + frontend + local Stellar network). New contributors spend hours debugging the setup.

Problem:
Contributors can run each service individually but not together. The Docker Compose file has services but no documentation on which to start first, what environment variables are required, how to connect Freighter to a local network, and how to deploy the contract to the local node.

What "Done" Looks Like:

• New docs/guides/LOCAL_STACK.md
• Prerequisites: Docker, Docker Compose, Freighter extension configured for custom network
• Step-by-step: docker compose up → local Stellar node available → deploy contract → fund test accounts → run backend → run frontend
• Environment variable reference table: which service needs which variables, where defaults come from
• Contract deployment script: how to deploy to the local Stellar node and get the contract address
• Freighter custom network setup: how to add http://localhost:8000 as a custom network in Freighter
• Troubleshooting: "port already in use", "contract deployment fails", "Freighter can't connect to local node"
• Resetting the local stack: how to wipe all state and start fresh

Key Files to Reference:

• docker-compose.yml
• backend/.env.example
• frontend/.env.example
• README.md

Constraints:

• All commands verified on a clean Docker environment
• Docker Compose version requirements specified
• Local Stellar node setup uses stellar-cli network start if available

PR Must Include:

• docs/guides/LOCAL_STACK.md (min 2000 words)
• Any missing .env.example entries discovered during documentation
• Troubleshooting section with at least 5 common issues

---

[DammyAji]

@DammyAji has applied to work on this issue as part of the Stellar Wave Program's 7th wave.

Hi can I work on this please?

ℹ️ Repo Maintainers: To accept this application, review their application or assign @DammyAji to this issue.

[drips-wave]

Congratulations, @DammyAji! 🎉 Your application was accepted by the repo's maintainers, and the issue is due on July 30, 2026.

🧑‍💻 @DammyAji: Please resolve the issue such that the repo's maintainers have enough time to review your contribution before the due date. You'll earn Points for completing the issue on-time, which will make you eligible for a share of the Stellar Wave Program's reward pool.

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[drips-wave]

This issue has been completed by @DammyAji as part of the Stellar Wave Program's 7th Wave 🥳

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