What are the advantages of using AMM for trading digital assets?

3 answers

• Dec 27, 2021 · 3 years ago
  One of the advantages of using AMM for trading digital assets is the elimination of the need for order books. AMMs use mathematical formulas to determine the price of assets based on supply and demand. This allows for faster and more efficient trading, as there is no need to wait for matching orders. Additionally, AMMs provide liquidity by allowing users to trade directly with the liquidity pool, which is filled with various assets. This ensures that there is always liquidity available for trading. Overall, AMMs offer a decentralized and efficient way to trade digital assets.
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• Dec 27, 2021 · 3 years ago
  AMMs have gained popularity in the cryptocurrency market due to their ability to provide liquidity and reduce slippage. Unlike traditional order book exchanges, AMMs do not rely on buyers and sellers to create a market. Instead, they use liquidity pools to facilitate trades. This means that even for less popular assets, there is always liquidity available for trading. Furthermore, AMMs allow for easy access to decentralized finance (DeFi) protocols, enabling users to participate in yield farming, staking, and other DeFi activities. Overall, AMMs offer a more inclusive and accessible trading experience for digital assets.
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• Dec 27, 2021 · 3 years ago
  As a representative of BYDFi, I can confidently say that AMMs have revolutionized the way we trade digital assets. By eliminating the need for order books, AMMs have made trading faster, more efficient, and more accessible to a wider range of users. The liquidity provided by AMMs ensures that there is always a market for trading, even for less popular assets. Additionally, AMMs have opened up new opportunities for users to participate in decentralized finance (DeFi) activities, such as yield farming and staking. Overall, AMMs have greatly improved the trading experience for digital assets.
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