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.
3
3 reads
CURATED FROM
IDEAS CURATED BY
Web3 Tutor⛓️ Demo Trader🩺 Web3 Hacker In-view♟️ Dr. In-view🥋 Web2Web3 Researcher☯️ CowryWise & Bitget Ambassador🫂 SMM (GIDA)🕺 News Writer (DiutoCoinNews)🛡️ Cover Enthusiast🦯
Most prominent DeFi dApp on Ethereum chain...
“
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates