AMM Tx Fee 5%

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This diagram models a complex automated market-making (AMM) system specifically tailored for a cryptocurrency trading platform, incorporating liquidity pools, token economics, and automated trading behaviors. It simulates various critical operations of a crypto exchange such as adding and removing liquidity, buying and selling tokens with cryptocurrency, calculating token price dynamically, and managing transaction fees. The system uses pools to represent different assets (e.g., Tokens, Crypto, Token Rewards) and their states within the market; automations, effected through gates and sources, to mimic market activities like trading and liquidity management; and drains to represent the removal or consumption of assets from the market (e.g., fees or tokens traded out of the AMM).

Key components include registers with formulas that calculate values such as the number of tokens bought, the crypto bought, and token prices, reflecting the complex formulas used in real-world AMMs to determine prices based on liquidity and trading volumes. The diagram meticulously tracks the exchange's liquidity by aggregating liquidity added and removed. It employs resource and state connections to represent flows of value and triggers that adjust according to market activities, illustrating how these various elements interplay dynamically within the ecosystem to affect token circulation, crypto reserves, and liquidity. This elaborate simulation could serve as a valuable tool for understanding the inner workings of AMMs, optimizing trading strategies, or exploring the effects of different market conditions on liquidity and token price volatility.