Cryptocurrency Q&A
What is the formula for AMM price?
What is the formula for AMM price?
Tommaso
Wed Nov 20 2024
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7
answers
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I'm trying to find out the formula used to calculate the AMM price. I've heard about Automated market Makers and understand they play a crucial role in determining asset prices, but I'm not sure how the actual pricing formula works.
7 answers
KpopStarlet
Fri Nov 22 2024
This process involves the utilization of mathematical formulas, which serve as the backbone of AMMs.
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Enrico
Fri Nov 22 2024
One of the most prevalent formulas employed is the Constant Product Formula.
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AmyDavis
Fri Nov 22 2024
The Constant Product Formula is represented mathematically as x*y=k.
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charlotte_wright_coder
Fri Nov 22 2024
Automated market Makers (AMM) operate on a unique mechanism to ascertain asset prices within a liquidity pool.
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JejuSunrise
Fri Nov 22 2024
In this equation, 'x' signifies the quantity of one type of token present in the liquidity pool.
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