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## add_liquidity We'll quickly outline the function `add_liquidity` before we look at the code. The first step inside the `add_liquidity` function is to calculate the `imbalance_fee_multiplier`. This is how we discourage users from adding too much of one token, potentially causing the pool to become imbalanced. The function then calculates the `A` parameter, which is a parameter of the pool. Next, we calculate the current liquidity of the pool, which we refer to as `D0`. After this, the function transfers the tokens into the pool. Then the token balances are updated. At this stage, this happens in memory rather than updating the state variables, which saves gas. Next, we calculate the liquidity again, now with the transferred tokens added, and we call this `D1`. Now that we have `D0` and `D1`, we calculate the imbalance fee. After calculating the imbalance fee, we once again calculate the liquidity, this time after removing the imbalance fee, which we call `D2`. Finally, we update the token balances, this time updating the state variables, because we now have the final balances, and we need to update the pool's state. Finally, we calculate the LP shares for the liquidity provider and mint LP tokens. ## Code Block Examples Here's an example of the `D0` calculation: ```javascript function calculateLiquidityD0(tokens) { let D = 0; for (let i = 0; i < tokens.length; i++) { D = D + tokens[i]; } return D; } ``` And an example of the code that updates the token balances in the pool's storage: ```javascript function updateTokenBalances(tokenBalances, updatedBalances) { for (let i = 0; i < tokenBalances.length; i++) { tokenBalances[i] = updatedBalances[i]; } } ```
We'll quickly outline the function add_liquidity before we look at the code.
The first step inside the add_liquidity function is to calculate the imbalance_fee_multiplier. This is how we discourage users from adding too much of one token, potentially causing the pool to become imbalanced.
The function then calculates the A parameter, which is a parameter of the pool.
Next, we calculate the current liquidity of the pool, which we refer to as D0.
After this, the function transfers the tokens into the pool.
Then the token balances are updated. At this stage, this happens in memory rather than updating the state variables, which saves gas.
Next, we calculate the liquidity again, now with the transferred tokens added, and we call this D1.
Now that we have D0 and D1, we calculate the imbalance fee.
After calculating the imbalance fee, we once again calculate the liquidity, this time after removing the imbalance fee, which we call D2.
Finally, we update the token balances, this time updating the state variables, because we now have the final balances, and we need to update the pool's state.
Finally, we calculate the LP shares for the liquidity provider and mint LP tokens.
Here's an example of the D0 calculation:
And an example of the code that updates the token balances in the pool's storage:
A detailed breakdown of the add_liquidity function in StableSwap3Pool - This lesson walks through the steps of the add_liquidity function, covering calculations for imbalance fees, A parameter, and liquidity before and after adding tokens. It also explains how token balances are updated in memory and storage, and how liquidity provider shares are calculated and minted.
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Course Overview
About the course
AMM math for Curve Stableswap
How to calculate swap amount and liquidity
Curve Stableswap contracts
How to implement a swap function
How to implement the add and remove liquidity functions
How to quantify liquidity pools
How to control the flatness of the curve
Smart Contract Engineer
$100,000 - $150,000 (avg. salary)
Blockchain Financial Analyst
$100,000 - $150,000 (avg. salary)
Smart Contract Auditor
$100,000 - $200,000 (avg. salary)
Last updated on January 12, 2026
Duration: 14min
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Duration: 27min
Duration: 23min
Duration: 21min
Duration: 23min
Course Overview
About the course
AMM math for Curve Stableswap
How to calculate swap amount and liquidity
Curve Stableswap contracts
How to implement a swap function
How to implement the add and remove liquidity functions
How to quantify liquidity pools
How to control the flatness of the curve
Smart Contract Engineer
$100,000 - $150,000 (avg. salary)
Blockchain Financial Analyst
$100,000 - $150,000 (avg. salary)
Smart Contract Auditor
$100,000 - $200,000 (avg. salary)
Last updated on January 12, 2026