Automated Market Maker (AMM) Simulator

A Python implementation of an Automated Market Maker (AMM) using the constant product formula (( x \cdot y = k )) to simulate decentralized trading.

Features

• Trade two assets: apples and potatoes.
• Dynamic # based on the constant product formula.
• Tracks liquidity pool state and price changes.

Usage

1. Clone the repository and run the script:

   git clone https://github.com/easyhat/AMM-algo.git
   cd AMM-algo
   python amm.py

2. Example output:

   Initial Pool: Apples: 100.00, Potatoes: 100.00
   Traded 10 apples for 9.09 potatoes.
   Updated Pool: Apples: 110.00, Potatoes: 90.91
   

API

• trade_apples_for_potatoes(amount): Trade apples to get potatoes.
• trade_potatoes_for_apples(amount): Trade potatoes to get apples.
• get_price(): Get the current price of apples in potatoes.

Future Enhancements

• Add fees for trades.
• Support liquidity management.
• Extend to multi-token pools.