🧭 DeFi｜AMM Automated Market Maker
· Definition: The more of a token is swapped out of a liquidity pool, the scarcer the remaining supply becomes and the higher its quoted price—so large trades cause greater price impact.
· How to understand it: An AMM’s price is determined solely by the ratio of the quantities of the two tokens in the pool. When it diverges from the external market price, arbitrageurs push the pool price back toward the external price.
· Reminder: For illiquid tokens, check the estimated slippage before making a large swap. If necessary, split it into several smaller trades.
$UNI 6.989（-6.63%）
· Definition: The more of a token is swapped out of a liquidity pool, the scarcer the remaining supply becomes and the higher its quoted price—so large trades cause greater price impact.
· How to understand it: An AMM’s price is determined solely by the ratio of the quantities of the two tokens in the pool. When it diverges from the external market price, arbitrageurs push the pool price back toward the external price.
· Reminder: For illiquid tokens, check the estimated slippage before making a large swap. If necessary, split it into several smaller trades.
$UNI 6.989（-6.63%）