# Virtual and Real Reserves in Uniswap v3

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This is great question. what are the real reserves and virtual reserves ?

The liquidity in Uniswap v3 is allocated within a **custom price range**.

**x**: The amount of x token

**y**:The amount of y token

L²: Liqudity

P= y/x ( This is price of x)

x*y=L²

Some boring math:

x*x*P=L²

x=L / sqrt(P) [ This is x]

y/P * y=L²

y= L * sqrt(P) [ This is y]

The liquidity was distributed uniformly along the price curve **between 0 and infinity** in Uniswap v1 and v2.

We understand that liquidity is allocated within a **custom price range. **We called it **“real reserves**” . Real reserves is only some part of the virtual reserves because reasl reserves is limited by maximum x minimum price(y maximum price) and y minimum price(x maximum price).

x-x(pb)=real reserves of x

y-y(pa)=real reserves of y

x(pb)= L / sqrt(pb)

**x(pb)** is the x amount in Pb price.

y(pa)= L * sqrt(pa)

**y(pa)** is the y amount in Pa price.

x virtual reserves=x real reserves +** x(pb)**

y virtual reserves= y real reserves + **y(pa)**