Constant Sum AMM Math | DeFi

[@smartcontractprogrammer]

0:00 - Intro 0:08 - What is an AMM? 0:28 - What can you do with an AMM? 3:23 - What is a constant sum AMM? 5:57 - Swap - How many tokens are returned in a trade? 8:49 - Add liquidity - How many shares to mint? 11:40 - Remove liquidity - How many tokens to withdraw? Notes github.com/t4sk/notes Take a course www.smartcontract.engineer/

[@aperson9991]

these videos are incredibly useful for a web3 developer, clear explanations of difficult concepts that are NOT available on any kind of website... keep going man, I learned a lot of stuff from your channel

[@MrCoreyTexas]

One thing that may catch you off guard is that in the equation X+Y=K, K can actually change, but the relation still has to hold. So initially the liquidity pool will contain 0 A Tokens and 0 B Tokens, so K=0+0=0. Later on there could be 100 A tokens and 100 B tokens, so K=100+100=200. Since it's called "K" you might associate that in your head with "unchanging / immutable constant" but it does change as tokens go in and out, but every time that happens the relation must hold.

[@user-sv1vw6fo7x]

I cant wait to learn this when i have the chance

[@salem232]

awesome as usual !! 😍

[@marcopiccioli8691]

Another great video, congrats! I am wondering if you ever made a video about Balancer constant mean formula.

[@smartcontractprogrammer]

I think Balancer is constant product for more than 2 tokens and with weights, so math is more complex but the ideas are the same as Uniswap V2

[@marcopiccioli8691]

@@smartcontractprogrammer thanks for your reply, As far as I know, it should be something like (x*y*z)^(1/3) = k

[@din7834]

On 4:09 there's an equation "X+Y=K", but the constant product is based on the multiplication, not the sum, so it's a mistake? It should be "X*Y=K", isn't?

[@smartcontractprogrammer]

It's correct. This video is about constant sum

[@Johaoriginal]

Admit that 1X = 5Y and there are 500X and 7500Y in a pool constant sum AMM with K = 10000. What is the equation ? And I would like to know how to solve the equation if I add 500X in the pool and withdraw Y. Thx if you make new video with examples.

[@vermabharat]

Can you do constant product market maker plz

[@cryptoknight7256]

Can you pls address the “burning tokens makes the price go up” myth? Thanks!

[@smartcontractprogrammer]

LUNA / UST

[@cryptoknight7256]

@@smartcontractprogrammer kzbin.info/www/bejne/qYS1iWlpYs1jpac

[@Lopol2010]

lol, strange why you go from hardest math such as curve to easiest ones instead of vice-versa haha, anyway looks good

[@jackchong0828jc]

constant k actually changes though!

[@smartcontractprogrammer]

Not during a swap

[@jackchong0828jc]

@@smartcontractprogrammer but after a swap, it affects the second swap right?