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Analysis of the new cryptocurrency protocol that has become popular recently: 314 (contract number suffix…314314)
Recently, a cryptocurrency protocol called 314 has emerged, and for the first time, it has adopted the contract market-making method for automatic trading. Let’s see how it is implemented:
314 and various public chain tokens form a liquidity pool pair. For example, 314/BNB.
The project party adds the price to the contract execution Genesis liquidity, and the contract starts automatic market making.
The number of 314 in the contract * the number of BNB = K value.
The K value is fixed and cannot be changed after the Genesis liquidity is added. The currency price = BNB/314
Before the buy order or sell order is executed, the contract will first perform a calculation to estimate the impact of this transaction on the price
For example: the Genesis liquidity is added as 100BNB for 100 314s
K value = 10000, and the price of 314 is 1BNB
When the outside world interacts with the buy order, 5BNB is transferred to the contract address, and the contract makes a prediction
The number of BNB in the contract becomes 105, and the K value remains unchanged. Then the number of 314 in the contract should be K value (10000)/105BNBN=95.2380
The contract executes this transaction and obtains 314 quantity of 100-95.2380=4.762
And the price = BNB/314=105/95.2380=1.1025
Therefore, the current price of 314 is increased to 1.1025, the transaction is completed, and wait for the next transaction to occur.
The mode of trading with ordinary transfers appeared for the first time. Traditional swap transactions involve complex calculations of transaction paths, internal slippage, routing and liquidity pools, and high GAS fees. However, using the 314 protocol only generates a transfer gas fee. Especially on expensive public chains such as ETH, the 314 protocol transaction method can save a lot of handling fees. It is predicted that this interaction method may bring new changes to the blockchain.
Analysis of the new cryptocurrency protocol that has become popular recently: 314 (contract number suffix…314314)
Recently, a cryptocurrency protocol called 314 has emerged, and for the first time, it has adopted the contract market-making method for automatic trading. Let’s see how it is implemented:
314 and various public chain tokens form a liquidity pool pair. For example, 314/BNB.
The project party adds the price to the contract execution Genesis liquidity, and the contract starts automatic market making.
The number of 314 in the contract * the number of BNB = K value.
The K value is fixed and cannot be changed after the Genesis liquidity is added. The currency price = BNB/314
Before the buy order or sell order is executed, the contract will first perform a calculation to estimate the impact of this transaction on the price
For example: the Genesis liquidity is added as 100BNB for 100 314s
K value = 10000, and the price of 314 is 1BNB
When the outside world interacts with the buy order, 5BNB is transferred to the contract address, and the contract makes a prediction
The number of BNB in the contract becomes 105, and the K value remains unchanged. Then the number of 314 in the contract should be K value (10000)/105BNBN=95.2380
The contract executes this transaction and obtains 314 quantity of 100-95.2380=4.762
And the price = BNB/314=105/95.2380=1.1025
Therefore, the current price of 314 is increased to 1.1025, the transaction is completed, and wait for the next transaction to occur.
The mode of trading with ordinary transfers appeared for the first time. Traditional swap transactions involve complex calculations of transaction paths, internal slippage, routing and liquidity pools, and high GAS fees. However, using the 314 protocol only generates a transfer gas fee. Especially on expensive public chains such as ETH, the 314 protocol transaction method can save a lot of handling fees. It is predicted that this interaction method may bring new changes to the blockchain.
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