Question
Consider a AMM SWAP pool (under XYK model) has a ETH/SOME pair, with 100000 ETH and 20000000 SOME. i) If someone is using 100 ETH
Consider a AMM SWAP pool (under XYK model) has a ETH/SOME pair, with 100000 ETH and 20000000 SOME.
i) If someone is using 100 ETH for SOME, how many SOME can he get if there is no fees?
ii) Say the SWAP fee is 1%, how many SOME can he get?
iii) Knowing that an anonymous user requested 800 ETH for SOME, based on this information, can you maximized your profit given that you are able to control the sequence of transactions. (1% SWAP fee)
Use XYK model
Step by Step Solution
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Step: 1
i ETH 100000 SOME 20000000 SO 1ETH 2000000010...
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
