Let’s talk about AMMs (automated market makers).
Uniswap V3 introduced concentrated liquidity, allowing LPs to provide liquidity only within the price ranges they choose.
One thing that’s easy to overlook: the deeper the pool, the smaller the price impact of a trade of the same size. That’s what people mean when they say, “More liquidity means lower costs.”
When trading on a DEX, set your slippage tolerance carefully. If it’s too high, you could lose the price difference to a sandwich attack.
$UNI is the governance token of Uniswap, which popularized AMMs.
#UNI
Uniswap V3 introduced concentrated liquidity, allowing LPs to provide liquidity only within the price ranges they choose.
One thing that’s easy to overlook: the deeper the pool, the smaller the price impact of a trade of the same size. That’s what people mean when they say, “More liquidity means lower costs.”
When trading on a DEX, set your slippage tolerance carefully. If it’s too high, you could lose the price difference to a sandwich attack.
$UNI is the governance token of Uniswap, which popularized AMMs.
#UNI