📈A VISUAL REPRESENTATION OF THE FORMULAS

A VISUAL REPRESENTATION OF THE FORMULAS

To maintain constant liquidity in the pools, mathematical formulas are utilized.

Below is a visual comparison of the pricing equations used for Stable (red) and Variable (green) liquidity pools, where:

  • x is the amount of first asset in the pool

  • y is the amount of second asset in the same pool

  • k is a fixed constant

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