🗂️ Today’s key concept: AMM (Automated Market Maker)
Liquidity providers deposit a pair of tokens according to the price ratio in the pool and earn a share of the trading fees.
For tokens in shallow pools, check the displayed slippage before making a large one-time swap; split it into several transactions if necessary.
Knowledge can help you avoid some pitfalls, but it can’t replace risk management.
$UNI is the protocol governance token of Uniswap, which popularized AMMs.
#UNI
Liquidity providers deposit a pair of tokens according to the price ratio in the pool and earn a share of the trading fees.
For tokens in shallow pools, check the displayed slippage before making a large one-time swap; split it into several transactions if necessary.
Knowledge can help you avoid some pitfalls, but it can’t replace risk management.
$UNI is the protocol governance token of Uniswap, which popularized AMMs.
#UNI