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Version: 2.0

Ticks

Ticks are the fundamental unit of accounting within the dex. Each tick is an integer between 352437 and -352437. All tradeable liquidity, in the form of either `PoolReserves` or `LimitOrderTranche`s is stored at a specific tick. The price of liquidity being stored at tick is determined by the function:

p(i)=1.0001ip(i) = 1.0001^{i}

Some examples:

  • Price of tick 0:0: p(0)=1.00010=1p(0) = 1.0001^0 = 1
  • Price of tick 11: p(−4000)=1.00014000≈1.4917p(-4000) = 1.0001^{4000} \approx 1.4917​
  • Price of tick 2: ​p(−4000)=1.0001−4000≈0.6703p(-4000) = 1.0001^{-4000} \approx 0.6703

More specifically price refers to the rate at which Token1 can be converted to Token0. Logically, the converse rate for converting Token0 to Token1 can be expressed as:

price0To1(i)=1/1.0001iprice0To1(i) = 1/1.0001^{i}