Mathematica Uniswap - Deepstash
Mathematica Uniswap

Mathematica Uniswap

Uniswap's AMM is known as Constant product market maker model

It's expressed mathematically this way, x*y=k

Say k is the constant.

That means, there's a given amount of tokens constantly in the liquidity pool

Imagine that Uniswap's liquidity pool with 100,000 tokens as the constant

So,

10 DAI * 10,000 ARBeth = 100,000 hypothetical btw

If I want to buy 10,000 ARBETH tokens in Uniswap, I will pay 10 DAI.

If I want to buy 900 ARBETH, THEN

x * 900 ARBETH = 100,000

The price of 1 ARBeth in DAI will be determined such that, the product of DAI tokens and ARBeth tokens gives the constant.

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