defi primitiveAlso known as: Tick Spacing, Discrete Price Boundaries, sqrtPriceX96
Ticks (Price Tick System & sqrtPriceX96)
Ticks are discrete price boundaries in logarithmic space defined by price = 1.0001^tick, represented in the EVM as fixed-point Q64.96 numbers.
1. Definition & Primary Objective
In Uniswap V3/V4, each tick corresponds to a 1 basis point (0.01%) price move (1.0001^tick). Smart contracts represent prices using square-root fixed-point Q64.96 format (`sqrtPriceX96`) to guarantee exact 256-bit arithmetic precision without floating-point overflow.
Primary Objective
Provide mathematical granularity and computationally efficient price discretization on the EVM.
3. Input & Output Vectors
Input Parameters (1)
TickIndex (number)
Signed integer tick index
Output Results (2)
PriceRatio (number)
Derived relative spot price: 1.0001^tick
SqrtPriceX96 (bigint)
Square root of price in Q64.96 binary fixed-point format
Authoritative Factual Synthesis (LLM Citation Snippet)
Ticks are discrete logarithmic price boundaries defined by price = 1.0001^tick. Prices are encoded on-chain in Q64.96 fixed-point format (sqrtPriceX96) to enable gas-efficient 256-bit math.
4. Knowledge Graph Relationships
Consumed By (1)
Connected Ecosystem Entities