Here are a few practical tips I've put together about AMMs (automated market makers).
Uniswap V2 uses the x × y = k model: ignoring fees, the product of the quantities of the two tokens in the pool remains unchanged before and after a swap. For tokens with shallow liquidity, check the estimated slippage before making a large swap, and split it into several smaller trades if necessary.
$UNI is the governance token of Uniswap, which brought AMMs into the limelight.
Markets are always full of surprises, so decide in advance what you'll do if your view turns out to be wrong.
You bear the risk yourself—just sharing some thoughts.
Uniswap V2 uses the x × y = k model: ignoring fees, the product of the quantities of the two tokens in the pool remains unchanged before and after a swap. For tokens with shallow liquidity, check the estimated slippage before making a large swap, and split it into several smaller trades if necessary.
$UNI is the governance token of Uniswap, which brought AMMs into the limelight.
Markets are always full of surprises, so decide in advance what you'll do if your view turns out to be wrong.
You bear the risk yourself—just sharing some thoughts.