Ethereum: How to calculate sqrtPricex96 for uniswap pool creation?

/in /by

Calculation of SQRTPRICEX96: A guide for the creation of a uniswap pool

As an ERC-20 rods, creating a swimming pool with your swapping and your weth on Sepolia can be a lucrative business. However, a crucial step is to calculate the sqrtpricex96 ” value, which determines the minimum price to which you can create a pool. In this article, we will explore how to calculate sqrtpricex96 for uniswap v3.

** What is SQRTPRICEX96?

The value SQRTPRICEX96 'reflects the square root of the minimum price required to create a Uniswap swimming pool with 96 liquidity tokens (the pools have a maximum of 100 liquidity tokens). This value helps traders and investors to determine the minimum price to which they can enter a pool to collect rewards.

** Why calculate SQRTPRICEX96?

The calculation ofsqrtPricex96 ‘is essential for several reasons:

  • Creation of swimming pool

    Ethereum: How to calculate sqrtPricex96 for uniswap pool creation?

    : With an SQRTPRICEX96 '' precise, you will know the minimum price required to create a Uniswap swimming pool, ensuring that you do not pay too much or sub-passé.

  • Risk management : Knowing the minimum price helps you manage risks by setting realistic expectations and avoiding unnecessary losses.

  • Trading strategies : Understanding the valueSQRTPRICEX96 ‘can shed light on trading strategies, such as input points, stop-loss and the dimensioning of the position.

How to calculate sqrtpricex96

To calculate sqrtPricex96 ‘, you will have to follow these steps:

  • Find the current price of the pool

    : Get the current price of your escape in Weth on Sepolia.

  • Determine the size of the minimum liquidity pool : The Uniswap V3 pools have a maximum liquidity pool size of 100 tokens, but this value can be adjusted by the protocol. For more simplicity, we will assume a size of fixed pool or 96 tokens.

  • Calculate sqrtpricex96" : Use the formula:sqrtPricex96 = SQRT ((Pool price × 10 ^ 18) / Liquidity of the swimming pool)

Here is an example of calculation:

| | Current Pool Prize (Weth) | Fixed pool size (100) |

| --- | --- | --- |

| A | $ 10.00 | $ 1,0000 WETH |

Calculation

Sqrtpricex96 = sqrt ((10.00 × 10 ^ 18) / 100)

Sqrtpricex96 ≈ sqrt (10 ^ {19})

Sqrtpricex96 ≈ 1017.31 ‘

As you can see, “SQRTPRICEX96” is approximately equal to 1,017 times the current price of the pool.

Conclusion

The calculation of `SQRTPRICEX96 ‘is a crucial scooter in the creation of Uniswap V3 swimming pool. By following the thesis steps and understanding how to calculate this value, you will be better equipped to manage your risks and optimize your trading strategies. Do not forget to always check the accuracy of your CALCS with the documentation of the Sepolia protocol and the official APIs.

Additional resources

If you need more advice or because to explore alternative approaches, plan to check the following resources:

  • Documentation of the Sepolia API (

  • Uniswap v3 Protocol Documentation (

  • Official blog and sushiwap tutorials

Stay informed, stay in advance!