could anyone explain 1 thing about uniswap price forming : Example - lets take any token, like let it be API3, when i enter 1 eth to buy token it shows 540 tokens , when i enter 10 eth, it shows 5367 , if i enter 100 eth, it shows 49958 . So price of the token drops when i enter the amount and not after transaction is made, so how do i calculate the price depending on the amount of ETH im going to spend, what is the formula ? Many Thanks in advance !!!
Jan 12, 2021, 4:57 PM
Price is based on liquidity
Jan 12, 2021, 5:37 PM
i know, but price changes when u enter amount of tokens u want to buy, how pool knows what price to form ?
Jan 12, 2021, 5:39 PM
Its like
Suppose pool have 100 token and 100 eth
So price is 1 eth = 1 token
Now you want to buy 10 token
So pool would be 90 token, and new price will be 100/90= 1.11 eth per token
But if you are buying only 1 token, price would be 100/99 = 1.01 eth per token
Suppose pool have 100 token and 100 eth
So price is 1 eth = 1 token
Now you want to buy 10 token
So pool would be 90 token, and new price will be 100/90= 1.11 eth per token
But if you are buying only 1 token, price would be 100/99 = 1.01 eth per token
Jan 12, 2021, 5:50 PM