How does AMM pricing work? Don’t panic, your class rep is here:
AMMs don’t need to match buyers and sellers one by one. Traders trade directly with the two tokens in the liquidity pool.
The larger the pool, the smaller the price impact of a trade of the same size. That’s what people mean when they say, “Better liquidity means lower slippage.”
No homework for this lesson, but the market may spring a surprise quiz.
$UNI 6.928（-6.15%）
#UNI
AMMs don’t need to match buyers and sellers one by one. Traders trade directly with the two tokens in the liquidity pool.
The larger the pool, the smaller the price impact of a trade of the same size. That’s what people mean when they say, “Better liquidity means lower slippage.”
No homework for this lesson, but the market may spring a surprise quiz.
$UNI 6.928（-6.15%）
#UNI