1.9 KiB
1.9 KiB
Proactive market making curve for token-swap
Add additional curve to token-swap program that support proactive market making.
The core of PMM is essentially calculating one integral and solving two quadratic equations. It is implemented in Dodo protocol described here.
As a part of PR please implement as described in [1] and [2].
For reference pricing formula is:
Where is defined to be the piecewise function below:
is the market price provided by an oracle, and
is a parameter in the range (0, 1).
The funding pool of PMM is described by four parameters:
: base token regression target - total number of base tokens deposited by liquidity providers
: quote token regression target - total number of quote tokens deposited by liquidity providers
: base token balance - number of base tokens currently in the pool
: quote token balance - number of quote tokens currently in the pool