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RE: An Example How Uniswap Calculate The Price Of The Tokens and What Happens When A Swap Is Made

in LeoFinance4 years ago

Informative and very well written. Thanks.
How would the token price impact how much you need to invest when you enter the Liquidity pool? How does the total value rebalance when you have lesser amount on one of the coins? For example on wLEO- ETH pair, if all wLEO tokens are swapped to ETH and we don't have enough wLEO, what happens then?
I don't know, if I know what I am asking here :P

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When you enter a pool you invest 50/50 token/eth at the curent price.

If someone is buying leo, swapping eth for leo he will push the price up. The he buys the higher the price. At some point leo will become extremly expensive, sp buying it all will be hard/stupid :). The same goes the other way.