Pool initialization fix

onomyprotocol · Jun 6, 2024 · 8b379cc · 8b379cc
1 parent ffa5d54
commit 8b379cc
Showing 1 changed file with 8 additions and 1 deletion.
diff --git a/x/market/keeper/msg_server_create_pool.go b/x/market/keeper/msg_server_create_pool.go
@@ -2,6 +2,7 @@ package keeper
 
 import (
 	"context"
+	"math/big"
 	"strings"
 
 	sdk "github.com/cosmos/cosmos-sdk/types"
@@ -62,7 +63,13 @@ func (k msgServer) CreatePool(goCtx context.Context, msg *types.MsgCreatePool) (
 	}
 
 	// Drops define proportional ownership to the liquidity in the pool
-	drops := coinPair.AmountOf(denom1).Mul(coinPair.AmountOf(denom2))
+	// Constant Product Model
+	// f(x, y) = value of liquidity
+	// We will define f(x, y) = sqrt(xy)
+	// InitDrops = Sqrt(denom1.Amount * denom2.Amount)
+	tmp := big.NewInt(0)
+	tmp.Sqrt((coinPair.AmountOf(denom1).Mul(coinPair.AmountOf(denom2))).BigInt())
+	drops := sdk.NewIntFromBigInt(tmp)
 
 	leader := types.Leader{
 		Address: msg.Creator,