Category: 1. AMM Explained: Automated Market Makers

Automated Market Makers are evolving to address specific functional issues such as the problem of capital inefficiency. Uniswap 3.0 allows users to set price ranges where they want their funds to be allocated. This is creating a far more competitive market for liquidity provision and will likely lead to greater segmentation of DEXs. The options…

Why are AMMs popular? Choice of tokens – There is a huge and growing number of cryptocurrencies but only a tiny proportion are supported by centralised exchanges. AMMs fill the gap in the market as there are no restrictions on what coins can be listed so long as liquidity can be incentivised. No KYC – The DEX…

If you are looking for the best automated crypto trading platform there are a few key considerations which should look out for: Market depth The depth of the particular market you want to trade into – the available liquidity – will determine any slippage in the price as you execute an order. You can use…

The AMM model is the default for decentralised exchanges but given the composability of DEFI different applications have emerged. Uniswap Uniswap uses AMMs to incentivise liquidity provision of pairs of Ethereum-based tokens (generally in a 50/50 ratio) which enable other users to swap those tokens for a fee without an intermediary, custody of funds or…

A centralised cryptocurrency exchange will try and create efficient markets for coins and tokens by acquiring customers to generate liquidity. They might do this through a mixture of marketing and product features: Offering the widest range of tradeable pairs Competitive fees charged per transaction Promoting its credibility & regulated status Making depositing/withdrawing fiat (on-off ramps)…

Any exchange, whether trading crypto, commodities or stocks, is designed to match the demand from traders wanting to buy an asset at a specific price with someone willing to sell at that price, and to automate the process within a user-friendly interface such as a website or App.  The traditional model for doing this is…

An automated market maker, otherwise known as an AMM, is a means of offering cryptocurrency trading without the need for an intermediary. AMMs combine Smart Contracts and incentives for liquidity provision to automate cryptocurrency trading and disrupt the traditional centralised exchange model, replacing it with the DEX. A DEX is an abbreviation for Decentralised Exchange.…