From 9d587e7a87f2215d5cbba2245096f3e42826ad20 Mon Sep 17 00:00:00 2001 From: Tom Date: Thu, 6 Jun 2024 18:27:49 +0100 Subject: [PATCH] feat: Fixing vAMM equation (#2297) * feat: Tweak to vamm equation --- non-protocol-specs/0014-NP-VAMM-bounds-estimations.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/non-protocol-specs/0014-NP-VAMM-bounds-estimations.md b/non-protocol-specs/0014-NP-VAMM-bounds-estimations.md index 30802a298..9641f7ad6 100644 --- a/non-protocol-specs/0014-NP-VAMM-bounds-estimations.md +++ b/non-protocol-specs/0014-NP-VAMM-bounds-estimations.md @@ -46,7 +46,7 @@ $$ where $p_u$ is the price at the upper end of the range (`upper price` for the upper range and `base price` for the lower range) and $p_l$ is the corresponding lower price for the range. With this, the average entry price can be found to be $$ -p_a = L_u p_u (1 - \frac{L_u}{L_u + p_u}) , +p_a = L_u \sqrt{p_u} (1 - \frac{L_u}{L_u + \sqrt{p_u}}) , $$ where $p_a$ is the average execution price across the range and other values are as defined above. Finally, the risk factor which will be used for calculating leverage at bounds