How does Price Slippage work?
The DeFi market is becoming more vibrant and attracting a lot of new users
The DeFi market is becoming more vibrant and attracting a lot of new users
Automated Market Makers (AMMs) allow digital assets to be traded automatically and without permission through liquidity pools. Unlike the traditional transaction between buyers and sellers, AMM users provide liquidity to the pools with their crypto tokens, and constant mathematical formulas determine their price.
Impermanent loss (IL) is when a liquidity provider has a temporary loss of funds
Why is low liquidity a problem? As we mentioned in the previous articles in DeFi 101 Series;
What is Decentralized Finance (DeFi)? Before getting to DeFi, we should start with CeFi
