Continuous Liquidity Pools
The algorithm for processing assets swaps is given by: y = (x * Y * X) / (x + X)^2, where x = input, X = Input Asset, Y = Output Asset, y = output
The fee paid by the trader is given by: fee = ( x^2 * Y ) / ( x + X )^2
The slip-based fee model has the following benefits:
    Resistant to manipulation
    A proxy for demand of liquidity
    Asymptotes to zero over time, ensuring pool prices match reference prices
    Prevents Impermanent Loss to liquidity providers
Staking The stake units awarded to a liquidity provider is given by: stakeUnits = ((R + T) * (r * T + R * t))/(4 * R * T), where r = SXP Staked, R = SXP Balance, T = Token Balance, t = Token Staked
This allows them to stake asymmetrically since it has no opinion on price.
Last modified 3mo ago
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