- Base/Quote Amount: Quantum of inventory. This can be expressed in two ways
- Base/Quote Percentage: This is the relative percentage between Base and Quote amounts, normalized by your mid-price. (basePct + quotePct = 1)
- Base/Quote Amount: This is an absolute amount of tokens expressed as atoms
- Price Factor: Basis points added to the swap based on the value of inventory
- Interpolation: Shape of the curve between two base/quote points
Examples
Risk Curves
Example Three: Mixed curve with inventory curve logic
Let’s take the same curve as before and add an inventory skew curve to this 5 point mixed curve.
Risk curves have three input values:
Let’s now visualize these curves - try dragging the inventory slider: