📈A VISUAL REPRESENTATION OF THE FORMULAS

A VISUAL REPRESENTATION OF THE FORMULAS

The mathematical formulas are used to keep the total pool liquidity the same at all times.

Below, you can find a visual comparison between the stable (red) and volatile (green) AMM pricing equations, 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