@tr1ck23
Unpacking AMM liquidity pools. Ever wondered about impermanent loss? It's the risk of your deposited assets being worth less than if you'd just held them, due to price divergence. But here's the flip side: capital efficiency. AMMs allow for deeper liquidity with less capital compared to traditional order books. Understanding this balance is key to smart liquidity provision.
0 reply
0 recast
0 reaction