For the same token, why does the average price get higher when you buy more at once?
Uniswap V2 uses a constant-product model: excluding fees, the product of the quantities of the two tokens in the liquidity pool stays the same before and after a swap.
Pay attention: If a token has a shallow pool, check the displayed price impact before making a large trade. If needed, split it into several smaller trades.
$UNI is the governance token of Uniswap, which popularized AMMs. Currently 7.78.
Every potential return comes with corresponding risks. Think about the worst-case scenario first.
#UNI
Uniswap V2 uses a constant-product model: excluding fees, the product of the quantities of the two tokens in the liquidity pool stays the same before and after a swap.
Pay attention: If a token has a shallow pool, check the displayed price impact before making a large trade. If needed, split it into several smaller trades.
$UNI is the governance token of Uniswap, which popularized AMMs. Currently 7.78.
Every potential return comes with corresponding risks. Think about the worst-case scenario first.
#UNI
