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## Pool Shares In this lesson, we will derive an equation to calculate how many pool shares we need to mint when we add liquidity to a Uniswap V2 pool. We will use the following variables: * **S = shares to mint** * **T = total shares** * **L1 = liquidity after adding liquidity** * **L0 = liquidity before adding liquidity** We know that the ratio of tokens we provide when adding liquidity (dY / dX) must equal the spot price. This relationship can be expressed as: ``` L1 - L0 / L0 = dX / X0 = dY / Y0 ``` This equation indicates that the change in liquidity (L1 - L0) relative to the initial liquidity (L0) is equivalent to the amount of token X (dX) we provide divided by the initial amount of token X (X0). Similarly, it's equal to the amount of token Y (dY) we provide divided by the initial amount of token Y (Y0). Using this information, we can derive the following equation for the number of shares to mint: ``` S = (L1 - L0 / L0) * T ``` This equation tells us the number of shares (S) we need to mint based on the change in liquidity (L1 - L0), the initial liquidity (L0), and the total number of shares (T). We will explore this equation in more detail in future lessons.
A practical equation to calculate pool shares to mint - This lesson will teach you how to combine two previous equations to derive the amount of shares you would need to mint when you provide some amount of tokens to an AMM.
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Course Overview
About the course
How to use Uniswap v2 dex and contracts
Interacting with the Uniswap v2 router and factory
How to create Uniswap v2 liquidity pools
How to add liquidity to Uniswap v2 pools
Swaps, flash swaps, flash swap arbitrage, and time-weighted average price (TWAP)
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Last updated on October 9, 2024
Solidity Developer
Uniswap V2Duration: 14min
Duration: 1h 20min
Duration: 10min
Duration: 54min
Duration: 25min
Duration: 26min
Duration: 1h 03min
Duration: 59min
Course Overview
About the course
How to use Uniswap v2 dex and contracts
Interacting with the Uniswap v2 router and factory
How to create Uniswap v2 liquidity pools
How to add liquidity to Uniswap v2 pools
Swaps, flash swaps, flash swap arbitrage, and time-weighted average price (TWAP)
Security researcher
$49,999 - $120,000 (avg. salary)
Smart Contract Auditor
$100,000 - $200,000 (avg. salary)
Smart Contract Engineer
$100,000 - $150,000 (avg. salary)
Web3 developer
$60,000 - $150,000 (avg. salary)
Web3 Developer Relations
$85,000 - $125,000 (avg. salary)
Last updated on October 9, 2024
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