About AMMs (automated market makers):
Liquidity providers deposit a pair of tokens in proportion to the prices in the pool and earn a share of the trading fees.
The deeper the liquidity pool, the lower the price impact of a trade of the same size—hence the saying, “the deeper the liquidity, the lower the slippage.”
$UNI 7.174(-2.96%)
Liquidity providers deposit a pair of tokens in proportion to the prices in the pool and earn a share of the trading fees.
The deeper the liquidity pool, the lower the price impact of a trade of the same size—hence the saying, “the deeper the liquidity, the lower the slippage.”
$UNI 7.174(-2.96%)