feat: allowed empty AMM levels#2358
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feat: apply refactor feedback Co-authored-by: David Siska <62546419+davidsiska-vega@users.noreply.github.com>
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| n\cdot\Delta{p} \geq {p_u} - (\frac{L\cdot\sqrt{p_u}}{L + \Delta{P}\cdot \sqrt{p_u}})^2 |
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| n\cdot\Delta{p} \geq {p_u} - (\frac{L\cdot\sqrt{p_u}}{L + \Delta{P}\cdot \sqrt{p_u}})^2 | |
| n\cdot\Delta{p} \geq {p_u} - \bigg(\frac{L\cdot\sqrt{p_u}}{L + \Delta{P}\cdot \sqrt{p_u}}\bigg)^2 |
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| n\cdot\Delta{p} \geq (p_u - p_{bb}) | ||
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Summary
Currently core rejects any AMM pool which does not provide at least one unit of volume between every tick in the AMM's range. PR updates spec with a new market parameter$allowedEmptyAmmLevels$ which defines the maximum size of a range in which an AMM is allowed to quote no volume. This range is measured in ticks.
As a guide of what this change means for mainnet markets, the below plot shows the value$allowedEmptyAmmLevels$ should be set to for the smallest commitment to be valid when the specific parameters are selected.
e.g. to allow$leverageAtLowerBounds=5$ for a $lowerBound$ offset 2% from the $basePrice$ , $allowedEmptyAmmLevels\geq1600$
The PR also gives equations for calculating the best-bid / best-ask to avoid core iterating over the range to find the price at which an AMM provides at least one unit of volume.
Notes