🔥 DeFi deep dive: AMM automated market makers
An AMM’s quotes are determined solely by the ratio of the two tokens in its liquidity pool. When its price differs from the broader market, arbitrage trades bring it back toward the external price.
For tokens with very low liquidity, check the displayed slippage before making a large trade. You can split it into several smaller trades.
$UNI is the governance token of Uniswap, the platform that popularized AMMs. Currently 7.738.
Save this if you found it useful, and come back to it later.
#UNI
An AMM’s quotes are determined solely by the ratio of the two tokens in its liquidity pool. When its price differs from the broader market, arbitrage trades bring it back toward the external price.
For tokens with very low liquidity, check the displayed slippage before making a large trade. You can split it into several smaller trades.
$UNI is the governance token of Uniswap, the platform that popularized AMMs. Currently 7.738.
Save this if you found it useful, and come back to it later.
#UNI