How does Jointer's Reserve achieve infinite liquidity with slippage?
Slippage is traditionally used to provide price discovery without a counter-party but the price discovered may not be the exact price at which the trade is executed because of slippage. The slippage on a trade is the variance between the expected price which is discovered before the transaction is executed and the final, exact price at which the trade executes.
Depending on the size of the trade and the available liquidity, each transaction will have different slippage. The larger a given withdrawal is compared to the liquidity in the pools, the higher the price slippage on the transaction will be.
Here is the simple slippage calculation:= Reserve Ratio = Reserve Token Balance / (Continuous Token Supply x Continuous Token Price)
From a mathematical perspective, this makes the liquidity unlimited and provides the ability to restore JNTR’s face value after any event. The entire process is automated and processed on public blockchains which means JNTR’s face value can increase value but can never decrease.
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