All Collections
SynFutures V1
Advanced Topics
How is SynFutures’s market trading price, or fair price determined?
How is SynFutures’s market trading price, or fair price determined?
S
Written by SynFutures
Updated over a week ago

For fair price SynFutures follows a Constant Product Formula model. Market prices are determined by the amount of sAMM’s asset position in a pool with function: xy=k, where x and y are the amount of AMM’s Quote and Base asset positions of a trading pair, and k is a constant number. To maintain kk, the balances are adjusted during the execution of the trade, therefore changing the price.

Did this answer your question?