Ethereum: How to calculate swap_out amount from DEXes with sqrtPrice?

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

    Ethereum: How to calculate swap_out amount from DEXes with sqrtPrice?

    : 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 thetotalAmountOutparameter 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 sqrtPrice

swap_out_amount = (amount_in / output_token_price) * total_liquidity

returned_swap_out_amount


Example usage:

input_token_price = 1,000

in wei

output_token_price = 500

in wei

total_liquidity_v3 = 10e18

in wei

sum_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 library

from 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 wei

tokens_number = 1000

in wei

price_of_base_token_v2 = 20e3

in wei

output_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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