Price Definition

  • Each token pair has an LP price, which is equal to the amount of quote tokens in the liquidity pool divided by the amount of base tokens
  • Each transaction will generate a transaction price, and the transaction price is determined by the ratio of the amount of input tokens to the amount of output tokens in a transaction
  • Each order will have an expected price, which is determined by the amount of tokens input in the order and the amount of outputs after the order is fully filled

Price formula

Assuming that the number of tokenA (base tokens) in LP is x, the number of tokenB (quote tokens) is y, the current LP price is P0=y/x, and the input of tokenA and the output of tokenB when the price of LP is changed from P0 to P1 Calculated as follows:
Last modified 1yr ago