How to Calculate the Price of Trade on Uniswap: AMM Math Explained

In this video, I go into detail on an example of AMM and Uniswap, so that you can make sound decisions when dealing with AMM.

1) How is the invariant calculated?
2) Using example of $LISA (does not exist!) and $ETH
3) How the formula works when a trade happens? E.g. someone buys $LISA using $ETH
4) How to calculate the trade (without fees)
5) What happens to the tokens inside the liquidity pool after the trade happens?
6) How does that affect the invariant? (Before and after trade, using numbers)
7) The price change in each trade. How and why? Explaining with numbers.

Want more in-depth content? Join our patreon for premium content at www.patreon.com/economicsdesign

🔥 Listen on Podcast: https://bit.ly/ED-podcast

📚 TLDR on Substack: https://economicsdesign.substack.com
👉🏻 Nerd out on https://www.economicsdesign.com/
😎 Level up with #TokenEconomics course: https://education.economicsdesign.com/

Disclaimer
This is not financial advice. Information shared is found publicly on the internet. All analysis and opinions are my own. The purpose of sharing the information is for education and knowledge sharing. The information shared is accurate at the time of recording. Purchasing cryptocurrencies poses a considerable risk of loss. Past performance does not indicate future results.

#economicsdesign #tokeneconomics #tokenomics #DeFi #uniswap #amm #dex #defimath #casestudy #bondingcurve #invariant #defitrade #math