# Invariant Curve

With the above definition in mind, Wombat’s invariant curve is defined as follows:

$\sum{L_x (r_x - \frac{A}{r_x})} = D$

$rₓ$

= coverage ratio of token x$A$

= 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 supports tokens with distinct prices, as supplied by external price oracles, the invariant curve is defined as follows:

$\sum{L_xp_x (r_x - \frac{A}{r_x})} = D$

$p_x$

= oracle price of token x

Last modified 4mo ago