## The `get_virtual_price` Function In this lesson, we're going to break down the `get_virtual_price` function. We'll learn what the function calculates and how it uses other functions to achieve this. The function looks like this: ```javascript @view @external def get_virtual_price() -> uint256: """ Returns portfolio virtual price (for calculating profit) scaled up by 1e18 """ D: uint256 = self.get_D(self.xp(), self.A()) # D is in the units similar to DAI (e.g. converted to precision 1e18) # When balanced, D / N = x / u - total virtual value of the portfolio # token_supply: uint256 = self.token.totalSupply() return D * PRECISION / token_supply() ``` Let's break down what each line of code does. First, we see the function takes the value of `D`. In previous lessons, we learned that this value is calculated using the function `get_D`. We can use this knowledge to understand how the function works. `D` represents the liquidity of the AMM. When all the token balances inside the AMM are equal, the pool is perfectly balanced. We can say that if there are `N` tokens, then `D / N` will be the token balance for each token. Therefore, `D` is the liquidity of the pool. Next, the function retrieves the `token_supply`. This represents the amount of LP tokens that were minted. After obtaining the value of `D` and the `token_supply`, the function multiplies `D` by `PRECISION` and divides the result by the `token_supply`. This means that the function `get_virtual_price` is calculating the value of each LP token. In summary, the `get_virtual_price` function calculates the virtual price of each LP token within the AMM. It achieves this by first calculating the liquidity of the pool (`D`) and then dividing that value by the total amount of minted LP tokens.