βͺοΈInvariant Curve
With the above definition in mind, Wombatβs invariant curve is defined as follows:
= coverage ratio of token x
= amplification factor
During a swap, the right-hand side of the invariant remains constant.
The invariant has some favorable properties, including:
The number of assets in a pool is unlimited. One can add and remove assets on the fly.
The weight of assets is flexible. A protocol can emit more rewards to a token in the pool with higher buy pressure to selectively deepen liquidity.
Users can provide single-sided liquidity.
Dynamic Pool
Dynamic pool supports tokens with distinct prices, as supplied by external price oracles, the invariant curve is defined as follows:
= oracle price of token x
More details could be found here
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