PumpaNomics

PumpaNomics uses the Constant Product Formula, which is the basis for many decentralized exchanges like Uniswap V2 and their forks. Here's how it works:

PumpaNomics Accuracy: For more realistic results, PumpaNomics uses combined liquidity across all onchain pools in its calculations, accounting for factors like arbitrage and market depth.

Key Insight: The constant product formula exhibits a quadratic relationship between liquidity and price. Doubling the liquidity (100% increase) results in a 4X price increase. This quadratic nature means that price changes are more dramatic than linear relationships. Here's why:

Understanding Results: The calculator shows how an injection of capital into a liquidity pool affects the token price. The result is displayed as both a percentage increase and an "X" multiplier.

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