Hello
I have a token with a liquidity pool on Pancakeswap.
I was wondering what will happen if I create a liquidity pool in another Exchange, e.g. Ape Swap or own Exchange with LP.
On Pancakeswap or Uniswap the price it determined over the reserveres x and y. How does the other exchange know the reserves of Pancakeswap. I’ve checked for example GMR token and the price at Pancakeswap and Ape Swap are similar. Are they accessing the same router?
The price is determined by the reserves on the pool, if different markets have different prices, it’s an arbitrage opportunity. The price doesn’t “automatically” move, it’s moved by market forces
Ok, but how it is possible that for example gmr.finance use ape swap and pancakeswap but the ratio or price is similar?
Arbitrage. if the price for token X on exchange A has a big discrepancy with the price on exchange B there is “free money on the table”. buy on the exchange where token X is cheaper, sell on the other one. There is plenty of people running arbitrage bots
I understand what you mean. If I have two exchanges with different prices then I could buy where it is cheaper and sell it where the price is higher. But it does not answer my question.
I guess that ApeSwap is accessing the token over the pair address. Not sure how they swap bidirectional if they will need the approve() for the pancakeswap router for the token.
My idea was to create own Exchange with Liquidity pool but my problem is I have already a liquidity pool in Pancakeswap. I need a solution how I can use or connect with my exchange.