Weighted Pools

Blizzard.finance offers weighted pools like those on Balancer.fi, allowing users to control exposure ratios to various assets. The swap math used by weighted pools is only slightly more complicated than traditional 50/50 pools, with the spot price \(SP_i\) being calculated following the equation:

\[ SP_i = \frac{\frac{B_i}{Wi}}{\frac{B_o}{W_o}} \]

Where:

• \(B_i\) - is the amount of base currency that is being swapped
• \(W_i\) - is the weight of the base currency
• \(B_o\) - is the amount of base currency that is being swapped
• \(W_o\) - is the weight of the quote currency

This adjusted exchange ensures that due to market forces and the exchange rate curve, the token supply in the pool will always reach market equilibrium at the ratio specified by the pool weights .