AMM Crypto with tool tips
AMM Price Impact Simulator
🔍 Detailed Explanation of Each Result
🪙 1. [COIN] Sold to Reach $[Target Price]
What it means:
This is the estimated number of [COIN] tokens purchased from the AMM pool to raise the price from the initial price to the target price, using AMM dynamics.
How it’s calculated:
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Based on the constant product formula
x * y = k - As price increases, the pool gives out fewer tokens per dollar
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We calculate how many tokens were removed from the pool by solving:
tokens sold=x0−x1\text{tokens sold} = x_0 – x_1tokens sold=x0−x1
where:
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x₀= initial token reserve -
x₁= final token reserve needed to support the target price
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Why it matters:
This helps investors understand how much buying pressure is needed to move a token’s price under AMM mechanics — which is non-linear, meaning more volume is needed as price rises.
💵 2. Estimated USD Invested
What it means:
An estimate of the total money spent by buyers to raise the price from the initial to the target value.
How it’s calculated (approx): Estimated USD Invested≈Tokens Purchased×(Initial Price+Target Price2)\text{Estimated USD Invested} \approx \text{Tokens Purchased} \times \left( \frac{\text{Initial Price} + \text{Target Price}}{2} \right)Estimated USD Invested≈Tokens Purchased×(2Initial Price+Target Price)
Why it’s approximate:
The actual price rises non-linearly in an AMM, but using the average price gives a good ballpark. For precise analysis, an integral over the price curve is needed.
Why it matters:
It shows the capital requirement for significant price movement — key insight for both traders and tokenomics planners.
🏦 3. Final [COIN] Reserve
What it means:
The number of [COIN] tokens left in the AMM pool after the price is raised to the target level.
How it’s calculated: x1=k/Target Pricex_1 = \sqrt{k / \text{Target Price}}x1=k/Target Price
This is the new token reserve that matches the constant k at the new price.
Why it matters:
AMMs always maintain a balance such that x * y = k. This value shows how liquidity drains from the token side of the pool as price increases.
🏛️ 4. Final USD Reserve
What it means:
The total USD liquidity now held in the pool after all the buying has occurred.
How it’s calculated: USD reserve=x1×Target Price\text{USD reserve} = x_1 \times \text{Target Price}USD reserve=x1×Target Price
Why it’s important:
This is not how much money was spent — it’s what’s left in the pool to maintain the current price. The rest of the invested USD has been “spent” buying tokens and driving the price up.
📈 5. Market Cap at $[Target Price]
What it means:
The total market capitalization of the token if the price reaches the target level.
How it’s calculated: Market Cap=Circulating Supply×Target Price\text{Market Cap} = \text{Circulating Supply} \times \text{Target Price}Market Cap=Circulating Supply×Target Price
Why it matters:
Market cap reflects the perceived total value of a project at a given price. This field shows how much value would be assigned to the token network if the price climbed to the target, assuming circulating supply is unchanged.
