Price

Tidal AMM gives two prices:

  • Marginal price of symToken/Token - The price of the highest price bin that has liquidity in it. This would be the execution price of a tiny swap order from leverage buyers.

  • System average price of symToken/Token - The weighted average price of all liquidity on Tidal AMM.

Formula for the system average price:

P0=SUM(S1āˆ—P1+......+Snāˆ—Pn)SUM(S1+......+Sn)P_0=\frac{SUM(S_1*P_1+......+S_n*P_n)}{SUM(S_1+......+S_n)}\\

where:

S=Sizeā€‰ofā€‰liquidityā€‰position(Token)P=Binā€‰priceā€‰ofā€‰liquidityā€‰positionā€‰(symToken/Token)P0=Systemā€‰averageā€‰priceS= Size\,of\,liquidity\,position(Token)\\ P= Bin\,price\,of\,liquidity\,position\, (symToken/Token)\\ P_0= System\,average\,price

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