Solana: How to accurately calculate the token price using connection curves?
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I can provide you with an article on how to accurately calculate token prices using bond curves.
Accurate Token Price Calculation Using Bond Curves
Binding curves are a critical tool for Solana developers to manage liquidity and ensure the stability of their tokens. In this article, we will explore how to accurately calculate token prices using bond curves.
Introduction to Bond Curves
A bond curve is a mathematical function that maps an input value (such as the price of a token) to an output value (such as the current market price of the token). The bond curve is designed to provide a reliable and efficient way to manage liquidity and prevent price shocks.
Token Price Calculation Using Bond Curves
To accurately calculate the token price using a bond curve, you need to follow these steps:
Step 1: Retrieve Account Information
First, you need to retrieve the account information for the user who wants to calculate the token price. You can use the construct
library to parse the user’s public key.
from construct import Struct, Int64ul
import solana.rpc
Define the bonding curve structclass BondingCurveStruct(Struct):
def __init__(self, symbol, min_price, max_price):
self.symbol = symbol
self.min_price = min_price
self.max_price = max_price
Get the account information for the user who wants to calculate the token pricesolaris_key = "YOUR_SOLARIUS_KEY"
Replace with your Solana keyuser_pubkey = solaris_key.public_key()
bonding_curve = BondingCurveStruct(
symbol="SOL",
Define the bonding curve symbolmin_price=1000,
Define the minimum price of the bonding curvemax_price=20000
Define the maximum price of the bonding curve curve)
account_info = solana.rpc.fetch_account_info(user_pubkey, bonding_curve)
Step 2: Parse the account information
Once you have retrieved the account information, you need to parse it to extract the information you need. You can use the built-in parsing functions of the construct
library to convert the account data into a structured format.
Parse account information into a structured formataccount_info_struct = account_info.data
bonding_curve_info = account_info_struct.account_info
Extract minimum and maximum prices from bonding curve informationmin_price = bonding_curve_info.price.min
max_price = bonding_curve_info.price.max
Step 3: Calculate the token price using the bonding curve
Now that you have extracted the necessary information, you can calculate the token price using the bonding curve. You can use a simple linear interpolation or a more complex algorithm to achieve accuracy.
Define token symbol and minimum and maximum pricestoken_symbol = "SOL"
min_price_token = 1000
max_price_token = 20000
Calculate token price using bonding curvebonding_curve_struct = BondingCurveStruct(token_symbol, min_price_token, max_price_token)
token_price = (min_price - min_price_token) / (max_price - min_price_token) * (max_price - max_price_token) + min_price_token
Step 4: Print the result
Finally, you can print the calculated token price.
Print the resultprint("Token price:", token_price)
Example use case
Here is an example of how to use this code to calculate the token price for a specific user:
“`python
solaris_key = “YOUR_SOLARIUS_KEY”
Replace with your Solana key
user_pubkey = solaris_key.public_key()
bonding_curve = BondingCurveStruct(
symbol=”SOL”,
Define the bonding curve symbol
min_price=1000,
Define the minimum bonding curve price
max_price=20000
Define the maximum bonding curve price
)
account_info = solana.rpc.fetch_account_info(user_pubkey, bonding_curve)
Parse the account information into a format structured
account_info_struct = account_info.