wenomechainsama (billytheg)

wenomechainsama

learning the onchain ways

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Assume 1E is 1000 USDC, we LP 1E and 1000 USDC. The total balance of tokens in the pool is 10E and 10,000 USDC. If the value of ETH doubles to 2000 USDC, the value of the pool stays the same (20,000 USDC) but the token balance changes due to arbitrageurs. It becomes 6E and 12,000 USDC.

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recast:farcaster://casts/0x3ec594c6c3f5bbabdb00258ca10a54957482c994e5ce7086243874699e55d7b5

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