Automated market makers (AMM) have changed this game. As no direct counterparty is needed to execute trades, traders can get in and out of positions on token pairs that likely would be highly illiquid on order book exchanges.
When you’re executing a trade on an AMM, you don’t have a counterparty in the traditional sense. Instead, you’re executing the trade against the liquidity in the liquidity pool. For the buyer to buy, there doesn’t need to be a seller at that particular moment, only sufficient liquidity in the pool.
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A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending and many more functions.
Pooling liquidity is a profoundly simple concept, so it can be used in a number of different ways.
Popular cryptocurrencies like Bitcoin have caught the imagination of the world, even as they remain highly volatile.
Many think of these emerging technologies like crypto coins and Blockchain as the ultimate solution to end the corporatization of the internet, along with being the means to end government intervention on liberty, currency and privacy.
A group of people in the crypto community, led by crypto investment firm Paradigm’s research partner Sam Sun , may have just prevented SushiSwap’s token fundraising platform Miso from losing more than $350 million worth of ether (ETH, -5.98%) , after discovering and fixing a bug on the platform in under just five hours.
In a Dutch auction, investors place bids reflecting the maximum amount that they are willing to pay. Once the bids are collected, the highest bid is declared the winner. After the auction is finalized, unsuccessful bids are returned to their owners.
Polkadot is a network protocol that allows arbitrary data —not just tokens— to be transferred across blockchains.
This interoperability seeks to establish a fully decentralized and private web, controlled by its users, and simplify the creation of new applications, institutions and services.
Polkadot can transfer this data across public, open, permissionless blockchains as well as private, permissioned blockchains.
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