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i come across a scenario that a we will be enabling people to mint their ERC20 and on one page we will show them the total price in USD for their ERC20. a few question in my mind,

  1. if uniswap is the source of truth of price, does it mean that if the new ERC20 didn't have a LP on Uniswap then api will return nothing?
  2. assuming someone now enlist a new LP $ERC20-$USDC at 1:100 with a total of USD200 TVL (without any trading vol.), will the api return the price of $ERC20 at $100 accordingly?

since this seems to be quite an edge case specific for new token, so hope you dont mind i rise my questions here. much appreciated.

Cheers.

1 Answer 1

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To fetch price from uniswap you usually calculate it from the LP's reserves through the getReserves() function. If there isn't a LP contract, you obviously can't call this function.

To calculate the price using fixed constant product rule, 1 * 100 = $100 so yes, the price would be $100.

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