Arbitrage 50/50
50/50 BAL/ WETH Pool In-Given-Price problem and solution
Last updated
50/50 BAL/ WETH Pool In-Given-Price problem and solution
Last updated
Alternate Example:
We will utilize our 50/50 BAL / WETH pool (0.1% Swap fee) as a benchmark and will assume the external market spot price to be 0.0048 WETH / BAL. Please note this market for the purpose of the example is considered infinite in depth. This means as we sell our tokens, the price is not impacted.
In comparison to our previous example, the following pool is much less deep in terms of total liquidity. Due to the lack of depth, we can expect to create a larger price impact using lower amounts of capital.
| Pool (Wo / Wi) | WETH Balance (Bi) | BAL Balance (Bo) |
|---|---|---|
50/50
135.9922
30,158
