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JohnPlummer/constant_product_formula.py

Created March 6, 2024 20:15
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constant_product_formula.py
# Constants for the initial state of the liquidity pool
x_initial = 1000 # Initial amount of Token A
y_initial = 1000 # Initial amount of Token B
k = x_initial * y_initial # Constant product k
delta_x = 100 # Amount of Token A being swapped
# New amount of Token A in the pool
x_final = x_initial + delta_x
# Calculate the new amount of Token B using the constant product formula
y_final = k / x_final
# Amount of Token B received
delta_y = y_initial - y_final
delta_y
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