I’d be happy to help you calculate the swap amount from DECA (derivative currencies) using the ‘sqrtPrice’ method for Uniswap V3 and 2:00 AM.
Calculating Swap Amount: A Step-by-Step Guide
The ‘sqrtPrice’ function is a key part of Uniswap’s liquidity pool. It calculates the swap amount for a given input token (‘inputToken’) based on the output token (‘outputToken’, which can be derived from a DEX), the price of the output token, and the total liquidity of the pool.
To calculate the swap-out amount using sqrtPrice' with Uniswap V3, follow these steps:
1. Define the input parameters
- inputToken: The input token to be swapped.
- outputToken
: The token you want to receive in exchange for the input token (can be derived from a DEX).
- priceOfOutputToken: The price of the output token (outputToken
) at the time of the swap.
- poolLiquidity: Total liquidity of the pool, represented by thetotalAmountOut
parameter in Uniswap V3.
2. Calculate the swap-out amount
ThesqrtPricefunction can be used to calculate the swap amount as follows:
def calculate_swap_out(amount_in, output_token_price, total_liquidity):
Calculate the swap-out amount using sqrtPriceswap_out_amount = (amount_in / output_token_price) * total_liquidity
returned_swap_out_amount
Example usage:input_token_price = 1,000
in weioutput_token_price = 500
in weitotal_liquidity_v3 = 10e18
in weisum_in = 1e15
in wei (example value)swap_out_amount = calculate swap_out(amount_in, output_token_price, total_liquidity_v3)
print(f"The swapped amount is {swap_out_amount}wei")
3. Emit the output token
You can use a library such as OpenZeppelin's ERC20Token’ to derive the output token from a DEX, or you can use your own logic to calculate the output token.
For example, if you have a DEX that provides the following parameters:
| Parameter | Description |
| — | — |
| baseToken | The input token used for the derivation. |
| numTokens | The number of tokens in each group. |
| priceOfBaseToken | The price of the input token at the time of derivation. |
You can calculate the output token like this:
def derive_output_token(base_token, num_tokens, base_token_price):
Calculate the output token using the OpenZeppelin ERC20Token libraryfrom openzeppelinrc import ERC20Token
output_token = ERC20Token(
base_token,
num_tokens,
_base_token_price * (number_of_tokens - 1)
)
return_token
Example usage:base_token_price = 10e6
in weitokens_number = 1000
in weiprice_of_base_token_v2 = 20e3
in weioutput_token = derived_output_token(base_token_price, token_number, base_price_of_token_v2)
print(f"Output token is: {output_token.name}")
4. Calculate swap-out using sqrtPrice using Uniswap V2 and AMM
You can use a similar approach as above to calculate the swap amount for Uniswap V2 and AMM.
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