HyperSwap Docs
  • šŸ”Ž| HyperSwap
  • šŸ”—| Official Links
  • ā“| How to Start ?
    • Create a Wallet
    • How to Bridge on HyperEVM ?
  • PROTOCOL CONCEPTS
    • 🌐| Overview
    • šŸŠLiquidity Pool
      • AMM Standard Liquidity Position
      • Concentrated Liquidity Position
      • ⚔Single Asset ZAP
    • šŸ“| Constant Factor AMM
    • šŸ’²| Dynamic Fees
    • āœ‰ļø| Partner Referral
  • Points
    • šŸ’Ž| Point Program
  • Token Design
    • ā›ļø| Liquidity Mining
    • šŸ”„| Conversion and Redemption
    • šŸ¤| Revenues Sharing Model
    • šŸ’°| Protocol Earnings
    • šŸ”„| Deflationary mechanisms
  • TOKENS
    • šŸŖ™| $SWAP
    • šŸ”“| $xSWAP
  • Contracts
    • šŸ“œ| Hyper EVM
      • V2
      • V3
      • 🧰Tools
    • šŸ“œ| Testnet
      • V2
      • V3
    • šŸ–Øļø| Integrations
      • āÆļøTemplates & Use Cases
      • šŸƒQuick Start
        • V2
          • Swap with V2
          • Add liquidity with V2
          • Functions
        • V3
          • Swap with V3
        • Single Asset ZAP
          • Provide Liquidity With V2
          • Provide Liquidity With V3
          • Functions
  • REFERENCES
    • | Audits
    • šŸ“–| Glossary
    • šŸŽØ| Media Kit
Powered by GitBook
On this page
  1. PROTOCOL CONCEPTS
  2. Liquidity Pool

AMM Standard Liquidity Position

PreviousLiquidity PoolNextConcentrated Liquidity Position

Last updated 26 days ago

Each pool on Hyperswap holds reserves of two tokens, and the price of the tokens is determined by the ratio of these reserves. This system is designed to maintain a balance between the two tokens. Whenever a trade is made, the price of the tokens is updated based on the new ratio of reserves in the pool, following the constant product formula:

xāˆ—y=kx*y = kxāˆ—y=k

Where: - x = quantity of Token A in the pool - y = quantity of Token B in the pool - k = constant product This formula ensures that large trades significantly impact the token price, leading to slippage.

šŸŠ