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  1. Liquidity provider

Shares

When you deposit liquidity in a strategy pool you get an ERC20 token representing your share of the pool. The number of shares you receive is based on the following calculation:

F: extant shares of an existing liquidity management pool,

(x,y)(x,y) (x,y): the current pool composition and

(x0,y0)(x_0,y_0) (x0​,y0​): the capital user wants to deploy

(px,py)(p_x,p_y)(px​,py​): the price of token0/token1 in USD

fff is the number of shares that will be minted, such that:

f=Fāˆ—x0px+y0pyxpx+ypyf = F*\frac{x_0p_{x} + y_0p_{y}}{xp_{x} + yp_{y}} f=Fāˆ—xpx​+ypy​x0​px​+y0​py​​

User will get

fāˆ—(1āˆ’p+m100)f*(1 - \frac{p+m}{100}) fāˆ—(1āˆ’100p+m​)

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Last updated 3 years ago

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