No need to place orders—but how do decentralized exchanges set prices?
AMMs don't need buyers and sellers to be matched one by one. Users trade directly with a pair of tokens in a liquidity pool.
When trading on a DEX, set your slippage tolerance carefully. If it's too high, you could lose extra funds to a sandwich attack.
$UNI is the governance token for Uniswap, the protocol that popularized AMMs.
If you learned something, drop a 1. If you're still confused, ask in the comments.
NFA, DYOR.
AMMs don't need buyers and sellers to be matched one by one. Users trade directly with a pair of tokens in a liquidity pool.
When trading on a DEX, set your slippage tolerance carefully. If it's too high, you could lose extra funds to a sandwich attack.
$UNI is the governance token for Uniswap, the protocol that popularized AMMs.
If you learned something, drop a 1. If you're still confused, ask in the comments.
NFA, DYOR.