Both are decentralized contracts, so why do some use order books while others use pools?
On-chain doesn’t mean risk-free: contract vulnerabilities, oracle failures, the cross-chain bridges used for deposits, and high slippage when liquidity is thin all need to be taken into account.
GMX uses a pool-based model: traders trade against the liquidity pool, and opening and closing prices come from oracle prices.
There’s no homework for today’s lesson, but the market may spring a pop quiz.
Understanding the principles helps you make more informed decisions; it’s not about predicting whether prices will rise or fall.
$HYPE 77.6 (-0.28%)
On-chain doesn’t mean risk-free: contract vulnerabilities, oracle failures, the cross-chain bridges used for deposits, and high slippage when liquidity is thin all need to be taken into account.
GMX uses a pool-based model: traders trade against the liquidity pool, and opening and closing prices come from oracle prices.
There’s no homework for today’s lesson, but the market may spring a pop quiz.
Understanding the principles helps you make more informed decisions; it’s not about predicting whether prices will rise or fall.
$HYPE 77.6 (-0.28%)