AMM

About this model

This diagram represents a complex token and cryptocurrency exchange system, integrating elements for simulating buying, selling, and liquidity management of tokens and cryptocurrency. At its core, it models the dynamic relationship between tokens and cryptocurrency within an exchange, including how token price in cents and crypto-related transactions impact the overall ecosystem. It includes mechanisms for adding and removing liquidity, as well as calculating the price of tokens based on current crypto holdings and the impact of sold or bought tokens on the ecosystem.

Registers are employed to compute various critical metrics such as tokens bought, tokens sold, crypto bought, crypto sold, and the token price in cents, using predefined formulas that account for the system's state at any given point. Pools are used to represent different entities such as tokens in cycle, token rewards, and crypto rewards, maintaining the system's state across transactions. The system also includes mechanisms to calculate new user contributions and to simulate trading activities (buying and selling behaviors) through source nodes that inject resources into the system. Overall, this diagram offers an intricate view of a token-crypto exchange, illustrating the flow of assets and the impact of transactions on token prices and liquidity.

"AMM" is a public Machinations diagram shared in the Community by Alexey Stepanenko, with 130 components.

It was created in March 2023 and last edited in September 2023.

Open the diagram in the Machinations app and press Play to watch the resources move, adjust its values to test how the system responds, or remix it to make an editable copy in My diagrams.