How is the pool price of the token calculated in a Dynamic AMM?

Meteora's Dynamic AMM Pools are similar to constant product pools that support token prices from 0 to infinity.

The price of your token in a Dynamic AMM (Volatile) Pool is based on the formula: x*y = k

• x and y are the quantities of the two tokens in the pool (e.g. JUP and USDC).

• k is a constant. As trades occur, the product of the amounts of the two tokens must remain the same.

• If someone buys JUP with USDC from your pool, the amount of JUP in your pool decreases, and the amount of USDC increases. The Dynamic AMM Pool adjusts the price based on the new token balances in the pool.