Uniswap: Profit of the automated 3D FOMO pricing mechanism success or failure

Welcome to Uniswap

Don’t worry. The first one is free ;)

What are Decentralized Exchanges and Uniswap

https://uniswap.org/
  • Formal verification of the core smart contracts
  • Code review of core smart contracts
  • Numerical error analysis
  • Code review of periphery smart contracts (during ongoing development)

Passive income with Uniswap Liquidity Pools

Uniswap pool

Cash-out Uniswap LP tokens profits

Trades change the balance of reserves resulting in a new price.

Uniswap Automated Market-making (AAM) 3D FOMO pricing mechanism

Constant Product Market Makerx * y = kwhere x is token x quantity 
y is token y quantity
and k = constant
x * p = k10 * 1000 = 10 000price
ETH = y/x = 1000 / 10 = 100
DAI = x/y = 10 / 1000 = 0.01

If you are skimming this article, GFY now.

(10-1) * (1000 + x) = 10000
9 * (10000+x) = 10000
1000 + x = 10000 / 9
10000 / 9
= 1000 + x = 1111.11
x = 1111 - 1000
= $111
The price of ETH is now changed $111
x*y=k
10 * 1000 = 10000by buying 1 ETH, your impact on the price will be 10%
but if there's more tokens in the pool
10000*100000 = k
K is much larger
This would have an impact of less than 1% of the price
Increased liquidity reduces price slippage.

Why does Impermanent Loss occur?

https://twitter.com/Fiskantes/status/1314524664484503555

Impermanent loss calculations

Constant Product Market Makerx * y = kx is token x quantity 
y is token y quantity
k = constant
x * y = k
100 * 10000 = 1000000
k = 1000000
x as Ethereum tokens
y as USDT tokens
ETH_pool * USDT_pool = constant
ETH_price = ETH_pool / USDT_pool
ETH_price = 10000 / 100
ETH_price = 100
With this formula we calculated back the ETH price on uniswap by only knowing the 2 different assets in the pool (ETH and USDT)
ETH_pool = sqrt(constant_product / eth_price)
USDT_pool = sqrt(constant_product * eth_price)
ETH_pool = sqrt(1000000 / 100)
ETH_pool = 100
USDT_pool = sqrt(1000000 * 100)
USDT_pool = 10000
ETH_pool = sqrt(constant_product / eth_price)
ETH_pool = sqrt(1000000 / 120)
ETH_pool = 91.2870929175
USDT_pool = sqrt(constant_product * ETH_price)
USDT_pool = sqrt(1000000 * 120)
USDT_pool = 10954.4511501
0.9129 * 120 = 109.548
1 ETH which is $120 and our orginal $100 in USDT is $220

How to avoid rug pulls

Rug pulled
Effect of the rug pull
Show delta
FTX Suhi perpetual swap
High IQ Rug Pull Mechanics

Profit from Uniswap by investing or shorting UNI Token

0.069% to advisors with 4 years vesting
17.80% to investors with 4 years vesting
21.51% to team members with 4 years veting
60% to community members
4 years release schedule
+10 years UNI inflation
UNI chart.
UNI/BNB

How to make money out of Uniswap markets with FTX Uniswap Perpetual swap Index

Now we can cash in on the potential success.

Uniswap Conclusion

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