fintech-algorithms
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AMM Pricing

5 algorithms in Digital Assets and On-Chain Finance.

In this family#

  1. Constant-Product AMM contract

    The x · y = k curve behind Uniswap v2. Price is set by the reserve ratio, so every trade moves it — and the slippage a trade suffers is a deterministic function of its size relative to the pool.

    constantProductQuote(reserve0, reserve1, amount0In, feeRate)
  2. Constant-Sum AMM contract

    The x + y = k curve: zero slippage, and the pool can be fully drained of one asset. Never used alone for that reason — it is the component that makes stableswap flat near the peg.

    constantSumQuote(reserve0, reserve1, amount0In, feeRate)
  3. StableSwap Invariant contract

    Curve's invariant: nearly constant-sum near the peg, constant-product away from it. The amplification coefficient sets where that transition happens, and it is what lets a stablecoin pool quote size with almost no slippage until it suddenly cannot.

    stableSwapQuote(balances, amountIn, amplification, feeRate, inputIndex, outputIndex)
  4. Weighted-Product AMM contract

    Balancer's generalisation of constant product to arbitrary weights, so a pool can hold 80/20 rather than 50/50. The weights set both the target allocation and the slippage profile.

    weightedProductQuote(balanceIn, balanceOut, weightIn, weightOut, amountIn, feeRate)
  5. Concentrated-Liquidity Position contract

    Uniswap v3 positions: liquidity supplied only within a price range. Far more capital-efficient inside the range, and entirely one-sided outside it — a position whose price has left its range is holding only the losing asset.

    concentratedLiquidityPosition(liquidity, priceLower, priceUpper, currentPrice)

What they share#

Every topic here is a record-transform, so once you have called one the rest follow the same shape. Import paths differ only in the final segment:

ts
import { constantProductQuote } from "fintech-algorithms/digital-assets-and-on-chain-finance/amm-pricing/constant-product-amm";
import { constantSumQuote } from "fintech-algorithms/digital-assets-and-on-chain-finance/amm-pricing/constant-sum-amm";

Read them in the order above — the sequence is pedagogical, not alphabetical.

Where this sits#

Digital Assets and On-Chain Finance collects 10 algorithms across 2 families. For the concept behind this family rather than the call signatures, see the concept guides.