Sell Trades

Purpose

The Sell function allows users to sell their shares of a specific outcome in exchange for a selected coin. The AMM dynamically adjusts the price based on the remaining pool liquidity.

Workflow

1. Input Parameters:

• Market ID.

• Outcome to sell.

• Number of shares the user wants to sell.

1. Price Calculation:

• The AMM calculates the amount of collateral the user will receive for the shares sold

1. pool Update:

• Shares are added back to the pool.

• Collateral is removed to maintain the constant product.

1. Collateral Transfer:

• The calculated collateral is transferred to the user.

1. Fee Deduction:

• A small fee is deducted and distributed to liquidity providers or the platform treasury.