Without an order book, how does a DEX quote prices?
Uniswap V2 uses the constant product model: ignoring fees, the product of the amounts of the two tokens in the liquidity pool remains unchanged before and after a trade.
Here's the key point: for tokens in shallow pools, check the displayed price impact before making a large swap. You can split it into several smaller trades.
$UNI is the governance token of Uniswap, which helped popularize AMMs. Current price: 6.99.
Understand how it works before trying it out. Don't place trades based on gut instinct.
#UNI
You bear the risk. Just chatting.
Uniswap V2 uses the constant product model: ignoring fees, the product of the amounts of the two tokens in the liquidity pool remains unchanged before and after a trade.
Here's the key point: for tokens in shallow pools, check the displayed price impact before making a large swap. You can split it into several smaller trades.
$UNI is the governance token of Uniswap, which helped popularize AMMs. Current price: 6.99.
Understand how it works before trying it out. Don't place trades based on gut instinct.
#UNI
You bear the risk. Just chatting.