Market makers ensure that buyers and sellers can trade assets, be they stocks, currencies, or commodities, at optimal prices. They achieve this by being willing to step in as the go-to buyer for an asset at prevailing market prices.
The rise of AMMs can be attributed to several factors, including their simplicity, affordability in terms of fees, and user-friendliness. The heart of an AMM is its pricing formula. This adjusts an asset's price based on its availability in a pool relative to its trading counterpart.
To stay updated on market trends, AMMs often utilize price oracles that fetch the real-time prices of assets from centralized exchanges. If there's a discrepancy in the price of a digital asset in the AMM and its market price on a centralized platform, it paves the way for arbitrage opportunities.
Also known as a majority attack. When one or a group of miners control greater than 50% of the network's mi...
An Initial DEX Offering (IDO) is a type of blockchain fundraising method. It’s a public token sale conducte...
A temporary crypto wallet for potentially risky interactions.