Let's take a look at the `calc_token_amount` function in a StableSwap pool contract. This function takes in an array of token amounts and a boolean flag called `deposit`. If `deposit` is true, this means we're adding liquidity. Otherwise, we're removing liquidity. The function returns a single number, a `uint256`. However, this number does not directly represent the amount of tokens being minted or burned. This function is a simplified calculation of token supply. It does not take into account fees that might occur when the pool is imbalanced, whether this is from adding or removing liquidity. Here's a step-by-step breakdown of the function: 1. First, the function gets the current balance of the tokens in the pool and assigns it to the variable `balances`. 2. Next, it gets the parameter `A`. 3. The function then calculates the value for `D0`, which represents the initial liquidity in the pool. This is calculated from the current balance of tokens. 4. It then runs a loop to update the `balances` based on whether the input is a deposit or withdrawal. * If it is a deposit, the loop adds the input `amounts` to the current `balances`. * If it is a withdrawal, the loop subtracts the input `amounts` from the current `balances`. 5. After the loop has run, the function calculates the value for `D1`, representing the new liquidity in the pool, again based on the current token balances. 6. Finally, the function calculates the difference between `D1` and `D0`, and then divides this difference by the initial liquidity, `D0`. We multiply this by the total supply of LP tokens, to calculate the amount of LP tokens that will be either minted or burned. This calculation gives us an approximation of the LP tokens that will be minted or burned. It is a simplified calculation that does not take fees into account.
Let's take a look at the calc_token_amount function in a StableSwap pool contract. This function takes in an array of token amounts and a boolean flag called deposit. If deposit is true, this means we're adding liquidity. Otherwise, we're removing liquidity. The function returns a single number, a uint256. However, this number does not directly represent the amount of tokens being minted or burned.
This function is a simplified calculation of token supply. It does not take into account fees that might occur when the pool is imbalanced, whether this is from adding or removing liquidity.
Here's a step-by-step breakdown of the function:
First, the function gets the current balance of the tokens in the pool and assigns it to the variable balances.
Next, it gets the parameter A.
The function then calculates the value for D0, which represents the initial liquidity in the pool. This is calculated from the current balance of tokens.
It then runs a loop to update the balances based on whether the input is a deposit or withdrawal.
If it is a deposit, the loop adds the input amounts to the current balances.
If it is a withdrawal, the loop subtracts the input amounts from the current balances.
After the loop has run, the function calculates the value for D1, representing the new liquidity in the pool, again based on the current token balances.
Finally, the function calculates the difference between D1 and D0, and then divides this difference by the initial liquidity, D0. We multiply this by the total supply of LP tokens, to calculate the amount of LP tokens that will be either minted or burned.
This calculation gives us an approximation of the LP tokens that will be minted or burned. It is a simplified calculation that does not take fees into account.
A simplified Solidity function to calculate token amounts - This function calculates the amount of liquidity tokens to be minted or burned, taking into account whether liquidity is being added or removed. It does not consider the fees that might occur when the pool is imbalanced.
Previous lesson
Previous
Next lesson
Next
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 August 11, 2025
Duration: 14min
Duration: 32min
Duration: 26min
Duration: 23min
Duration: 20min
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 August 11, 2025