Single Sided Deposits

How does a single sided deposit work?

The pool tokens issued to a depositor of a single asset can be determined by utilizing the change in the value function (invariant) of the pool. As seen in the whitepaperarrow-up-right the ratio of the change in the value function will yield the number of tokens issued. This information will become even more important when discussing multi-asset deposits:

This can be simplified for our purpose of a single sided deposit where all other tokens in a pool maintain constant balances. The token which we are investing into a pool will be denoted with the letter “t”. Amount in (At), Balance-In (Bt), Weight-In (Wt) and the pool token supply will be the variables in concern. When simplified the equation is as follows:

Pissued=Psupply((1+AtBt)Wt1)P_{issued}=P_{supply} * \Bigg(\bigg(1+ {\frac {A_{t}}{B_{t}}} \bigg)^{W_{t}}-1 \Bigg)

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