What is sqrtPriceX96 in Uniswap V3 Pools | Napkin Math to get Price from sqrtRatioX96 / sqrtPriceX96

[@blockmancodes]

Learn to use all of Uniswap's swap and liquidity functionality with code. bit.ly/3JkXYqL

[@kangChihLun]

Thank you for the tutorial , that is more clear than official doc!

[@blockmancodes]

Glad it's helpful!

[@azhar0406]

One of the best Uniswap V3 tutorial video I have ever seen. Giga Chad Bro

[@blockmancodes]

Thanks brother

[@st4rgard3n42]

You are a gentleman and a scholar ser. Thank you

[@blockmancodes]

Thank you ser

[@blockmancodes]

What Uniswap V3 math do you want to understand next?

[@veliea5160]

can you please explain the reason why Uniswap v3 keeps track of square root of price. In V3 core pdf in (6.7 equation) it derives an equation from (6.6. eq) which holds square root of price but I could not understand how it derived. i tried to work on derivate to get a meaningful reason but could not figure out

[@mahdikarimi8444]

can you talk about concentrated liquidity and tick spacing ?

[@blockmancodes]

@@veliea5160 I'll do a video on "why" uniswap uses square roots. Because Uniswap's explaination here, docs.uniswap.org/sdk/v3/guides/fetching-prices isn't very specific lol. I think your other question is about the calculation of liquidity right? It's a little complicated in V3. I'll do a video on that eventually

[@blockmancodes]

@@mahdikarimi8444 I can absolutely do a video on it

[@metamodern7648]

Hello, can you please tell why would one choose to calculate price/ratio using this Math rather than calling Quoter contract? Is it faster/cheaper to do this way? Thank in advance

[@not-high-on-life]

Wooo, thanks man! It all makes sense

[@followclout]

I'm confused. Why do the officials docs say to divide by 2^96 but you say to divide by 2^192?

[@androidtechsayed201]

Best devs ever🥰

[@sEYbaStIeNS]

It doesn't work for me. For example with the pool USDC / ETH 0.3% fees: 0x8ad599c3a0ff1de082011efddc58f1908eb6e6d8 sqrtPriceX96 is 1.97*10^33. And using that formula we get 6,19*10^8. Did I do something wrong ? Maybe we should somewhere include the decimals in the calculation since they are not the same for both tokens as in your example ? Thanks

[@followclout]

Yeah I think it has to do with different decimals. That's the one thing I'm also trying to figure out

[@followclout]

I got it, You have to divide your final answer by 10^-12 (which is the difference between the decimals for usdc 10^6 and ETH 10^18)

[@aemde]

perfect

[@hodlertiny3352]

Thanks for sharing. My questions is, sqrtPriceX96 doesn't consider slippage? In AMM v2, price are based on input amount which will impact pool reserve and it is easy to understand. But in v3, sqrtPriceX96 doesn't consider input amount?

[@blockmancodes]

sqrtPriceX96 is literally the price ratio between the 2 tokens. If you want to accurately estimate slippage in V3 you need to take into account the liquidity at every tick

[@st4rgard3n42]

@@blockmancodes That's most definitely what I am trying to figure out right now. That's what brought me here - so I am going to go ahead and start pouring over your existing vids - thanks again

[@hodlertiny3352]

@@blockmancodes Sir, is it possible to calculate Uniswap V3 output off-chain? In Uniswap V2, with Reserve A, Reserve B, fee rate R, and input amount C, the output can be easily calculated off-chain. Wondering if it is possible in V3? Thanks ahead.

[@nanowormer4278]

I really helped, thanks!

[@blockmancodes]

Glad it helped!!

[@outgrown3094]