Coder Social home page Coder Social logo

Ticks in V2? about docs HOT 2 OPEN

0xJepsen avatar 0xJepsen commented on June 21, 2024
Ticks in V2?

from docs.

Comments (2)

Florian-S-A-W avatar Florian-S-A-W commented on June 21, 2024 1

Hi @0xJepsen
This refers to the general trading term Tick Size and has nothing to do with what Uniswap calls "Ticks" in the V3 Protocol.
While the AMM model Uniswap uses is continuous, every Token has a discrete minimum unit. Lets look at ETH and its minimum unit Wei which is 10^(-18) ETH. You can't provide anything smaller than 1 Wei in liquidity to a Pair.
Let's imagine you deploy a Token with only 6 decimals like USDC with a very low supply. That could make one minimum unit of it worth a significant value, lets say 1000 USD. If you deploy a Pair with 10 units of this token, the minimum price ratio change you could achieve would be around 10% while the Pair has a liquidity of over 20.000 USD.
Obviously this is an exaggerated example but the same concept is true for any coin. By enforcing a minimum liquidity of 1000 minimum units of the Token, the initial Tick Size i.e. minimum price ratio change is always below 0.1%.

from docs.

0xJepsen avatar 0xJepsen commented on June 21, 2024

That makes sense, i think the way it is worded in the documentation is confusing since V3 has a very specific definition of a tick struct. Might be worth rewording to make more clear to users.

from docs.

Related Issues (20)

Recommend Projects

  • React photo React

    A declarative, efficient, and flexible JavaScript library for building user interfaces.

  • Vue.js photo Vue.js

    🖖 Vue.js is a progressive, incrementally-adoptable JavaScript framework for building UI on the web.

  • Typescript photo Typescript

    TypeScript is a superset of JavaScript that compiles to clean JavaScript output.

  • TensorFlow photo TensorFlow

    An Open Source Machine Learning Framework for Everyone

  • Django photo Django

    The Web framework for perfectionists with deadlines.

  • D3 photo D3

    Bring data to life with SVG, Canvas and HTML. 📊📈🎉

Recommend Topics

  • javascript

    JavaScript (JS) is a lightweight interpreted programming language with first-class functions.

  • web

    Some thing interesting about web. New door for the world.

  • server

    A server is a program made to process requests and deliver data to clients.

  • Machine learning

    Machine learning is a way of modeling and interpreting data that allows a piece of software to respond intelligently.

  • Game

    Some thing interesting about game, make everyone happy.

Recommend Org

  • Facebook photo Facebook

    We are working to build community through open source technology. NB: members must have two-factor auth.

  • Microsoft photo Microsoft

    Open source projects and samples from Microsoft.

  • Google photo Google

    Google ❤️ Open Source for everyone.

  • D3 photo D3

    Data-Driven Documents codes.