Post
Topic
Board Announcements (Altcoins)
Merits 1 from 1 user
Re: 🔷 Waves Tech - a powerful blockchain-agnostic ecosystem
by
hopenotlate
on 05/03/2021, 10:52:29 UTC
⭐ Merited by coco23 (1)
-snip-

4) One last question about swop.fi. This looks like a great addition to the Waves platform and it also has a nice FAQ. However, I couldn't find how are prices made? The trading doesn't seem to go over the Waves.exchange directly (or does it? the prices don't match with the waves exchange orderbook though). For instance if I buy a huge amount of BTC for USDN on swop.fi, what exactly happens with the LP-pool? How does it balance the USDN and BTC amounts after the purchase? As there is the (deterministic?) AMM algorithm behind I wonder if this algorithm could be abused in some sort of attack, especially for the pairs with at least 1 non-stablecoin, for instance in a flash crash or sudden price jumps?


Swop token price is determined as the number of USDN divided by the number of SWOP in SWOP/USDN pool : the same way as for all CPMM pools.

Maybe this medium article will help you clear some doubtc about swop.fi pricing and risks https://medium.com/swop-fi/swop-fi-pricing-5f89ab8766ac