The platform uses an algorithm to determine exchange rates... - Deepstash
<p>The platform uses an algori...

The platform uses an algorithm to determine exchange rates based on the liquidity in the pool.

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The risks of liquidity pools

  • If you provide liquidity to an AMM, you’ll need to be aware of a concept called impermanent loss. In short, it’s a loss in dollar value compared to HODLing. If you’re providing liquidity to an AMM, you’re probably ex...

How do liquidity pools work?

How do liquidity pools work?

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...

What are liquidity pools used for?

Pooling liquidity is a profoundly simple concept, so it can be used in a number of different ways.

  • One of these is yield farming or liquidity mining. Liquidity mining has been one of the more successful approaches. The tokens are distributed algorithmically to ...

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