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.
Segregated Witness, often abbreviated to SegWit, is an update to the Bitcoin protocol designed to address t...
An allotment of tokens or equity, that may be earned, purchased, or set aside for a certain investor, team,...
A small denomination of Ether. It is widely used as a measure of gas prices. 1,000,000,000 wei = 1 Giga wei...