Why The Recent Price Pump?

Hello everyone, Carlos here, today we experienced an unexpected price pump which confuses a lot of people (me included), here I’ll share what happened, and how it affect our holders.

Coingecko listing price exchanges

How does this affect to Liquidity Providers?

In the following example, I’ll expose a random transaction in which liquidity was added to the SPORE-USDC pool, as you can see (comparing the 50/50 amounts of each asset), the calculation that the swap made is based on the Pancake v1 price (and not from Coingecko), meaning that all staking and swap operations remain the same, they are not affected by this price change (even thought BSCScan uses the contract price to display it).

TX: https://bscscan.com/tx/0x6b7777ef5811dc2e864d6f20f2bfa38e67f2311309f5f52da73db1a943406730

Final notes

This is a normal behavior (it just took us by surprise), more markets will be joining eventually (or chains/networks), making the price to always be changing, but you have to remember that you can only trade an asset by a certain price in the market that its listed at that price and no other (for example, you can’t sell at $16 on pancake), then arbitrage will regulate the market itself once volume increases.

Official Links

Blockchain & Crypto | https://spore.engineering