Price Impact; 100,000 BAL
Last updated
Last updated
Pool token spot price (Assume A(t) = 1 BAL):
Then, we must calculate the ratio of the pool’s invariant before and after the exchange of 100,000 BAL.
Using the invariant ratio, we can determine the new total number of pool tokens and in the same stroke, calculate the amount of pool tokens which we received for the exchange.
Knowing the amount of BAL, we needed to invest and the pool tokens we received in exchange we can determine the effective price of a pool token to compare with our spot price:
