search
Ctrlk

Key Properties of the Price Data Structure

hashtag
1. Data Type

  • UINT 256:

    • Price values are stored as a 256-bit unsigned integer, ensuring sufficient precision for complex computations.

    • This representation supports extremely large values while maintaining compatibility with Ethereum’s architecture.

  • Not Scaled Integers:

    • Prices are expressed as raw integers, avoiding scaling complexities common in floating-point arithmetic.

hashtag
2. ERC-20 Scaling Standard

  • Scale Integer (10¹⁸):

    • Prices follow the same scale as ERC-20 tokens (e.g., 1 ETH = 10¹⁸ units). This ensures consistency across decentralized applications and simplifies integration with other DeFi protocols.

hashtag
3. Binary Representation

  • Q128.128 Format:

    • Prices are stored using a binary fixed-point representation:

      • The first 128 bits represent the integer portion of the price.

      • The last 128 bits represent the fractional (decimal) portion of the price.

    • This format ensures precision for both whole and fractional values, avoiding rounding errors in calculations.

hashtag
4. Optimized Storage

  • Single-Sided Price Storage:

    • The protocol only keeps one price (e.g., X) instead of storing both sides of a pair (e.g., X and Y).

    • Using a single price reduces storage requirements and computational overhead while enabling the calculation of the second value when needed.