chore: add chosing an exponentAtPriceOne docs

x/concentrated-liquidity/README.md

@@ -284,6 +284,43 @@ a) Preventing trade at a desirable spot price or
 b) Having the front end round the tick's actual price to the nearest
   human readable/desirable spot price
 
+## Chosing an Exponent At Price One Value
+
+The creator of a pool is required to choose an exponenetAtPriceOne as one of the input parameters. As explained previously, this value determines how much the spot price increases or decreases when traversing ticks. The following equation will assist in selecting this value:
+
+$$exponentAtPriceOne=log_{10}(\frac{D}{P})$$
+
+$$P=(\frac{baseAssetInUSD}{quoteAssetInUSD})$$
+
+$$D=P-(\frac{baseAssetInUSD}{quoteAssetInUSD+desiredIncrementOfQuoteInUSD})$$
+
+### Example 1
+
+SHIB is trading at $0.00001070 per SHIB
+BTC is trading at $28,000 per BTC
+
+We want to create a SHIB/BTC concentrated liquidity pool where SHIB is the baseAsset (asset0) and BTC is the quoteAsset (asset1). In terms of the quoteAsset, we want to increment in 10 cent values.
+
+$$P=(\frac{0.00001070}{28,000})=0.000000000382142857$$
+
+$$D=(0.000000000382142857)-(\frac{0.00001070}{28,000+0.10})=0.0000000000000013647910441136$$
+
+$$exponentAtPriceOne=log_{10}(\frac{0.0000000000000013647910441136}{0.000000000382142857})=-5.447159582$$
+
+We can therefore conclude that we can use an exponent at price one of -5 (slightly under precise) or -6 (slightly over precise) for this base/quote pair and desired price granularity.
+
+### Example 2
+
+Flipping the quoteAsset/baseAsset, for BTC/SHIB, lets determine what the exponentAtPriceOne should be. For SHIB as a quote, centralized exchanges list prices at the 10^-8, so we will set our desired increment to this value.
+
+$$P=(\frac{28,000}{0.00001070})=2616822429$$
+
+$$D=(2616822429)-(\frac{28,000}{0.00001070+0.00000001})=2443345$$
+
+$$exponentAtPriceOne=-log_{10}(\frac{2443345}{2616822429})=-3.0297894598783$$
+
+We can therefore conclude that we can use an exponent at price one of -3 for this base/quote pair and desired price granularity.
+
 ## Concentrated Liquidity Module Messages
 
 ### `MsgCreatePosition`
@@ -490,7 +527,7 @@ is associated with the `concentrated-liquidity` pool, the swap is routed
 into the relevant module. The routing is done via the mapping from state that was
 discussed in the "Pool Creation" section.
 
-### Liquidity Provision
+## Liquidity Provision
 
 > As an LP, I want to provide liquidity in ranges so that I can achieve greater
 capital efficiency
@@ -591,7 +628,7 @@ func (k Keeper) withdrawPosition(
 }
 ```
 
-### Swapping
+## Swapping
 
 > As a trader, I want to be able to swap over a concentrated liquidity pool so
 that my trades incur lower slippage
@@ -1462,16 +1499,14 @@ This listener executes after a swap in a concentrated liquidity pool.
 
 At the time of this writing, it is only utilized by the `x/twap` module.
 
-### State
+## State
 
 - global (per-pool)
 
 - per-tick
 
 - per-position
 
-### Placeholder
-
 ## Terminology
 
 We will use the following terms throughout the document: