🗒️ DeFi|AMM Automated Market Maker
· Definition: LPs deposit two tokens according to the price ratio in the pool and earn a share of the trading fees.
· How to understand it: The deeper the liquidity pool, the less impact a trade of the same size has on the quoted price. This is often summed up as “the deeper the liquidity, the lower the cost.”
· Note: When swapping on a DEX, set your slippage tolerance carefully. If it’s too high, you may lose more to sandwich attacks.
$UNI 6.903(-6.4%)
#UNI
For record-keeping only; not investment advice.
· Definition: LPs deposit two tokens according to the price ratio in the pool and earn a share of the trading fees.
· How to understand it: The deeper the liquidity pool, the less impact a trade of the same size has on the quoted price. This is often summed up as “the deeper the liquidity, the lower the cost.”
· Note: When swapping on a DEX, set your slippage tolerance carefully. If it’s too high, you may lose more to sandwich attacks.
$UNI 6.903(-6.4%)
#UNI
For record-keeping only; not investment advice.