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8 docs tagged with "AMM"

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Impermanent Loss

Impermanent Loss happens when the price of your tokens drop compared to when you deposited them. The larger the change is, the bigger the loss.

Liquidity Pool

Liquidity Pools are the backbone of many decentralized exchanges (DEX).

Marketplaces

Marketplaces facilitate the peer-to-peer discovery and trading of assets. The asset traded usually takes the form of NFTs (Non-Fungible Tokens) whereby each asset is unique and therefore requires significant amount of information and price discovery.

Orderbook DEXes

Traditional orderbook trading process for swapping tokens. In addition to the traditional order matching, most orderbook DEXes will also search for opportunities for orders to be settled on AMM DEXes.

Slippage

When transactions are sent to Ethereum, the amount of gas given as a charge for performing each transaction determines the order in which they are executed.

Uniswap Tokenomics

Uniswap allows users to trustlessly trade (swap) ERC20 tokens or stablecoins.