AMM

HSuke

You're not doing Algorand any favors by under-reporting that. It was 8000 TPS with DeFi swaps on mainnet AMM Swap Benchmark: https://d13.co/benchmarking-algorand-amm-real-user-swap-performance/

whodisguy32

Lol I don't chase yield or use leverage. And I never will. The only thing I would **consider** is staking and less so pooling funds into an AMM, but even then I wouldn't do that with all of my bags. Otherwise have buy targets and sell targets on holds. And set stop loss/risk mitigation strategy for trades. Everything else is noise.

croissant_auxamandes

Ummm. Did you read what I wrote? Bitcoin isn't going to replace the entire financial system - it's not possible to do flash loans, AMM, lending/borrowing, etc. Bitcoin is only good for store of value, and remittances. That's it.

theapplekid

>Think the protocol is a lot more centralized than it seems My bad I thought you were talking about the AMM protocol (which has little to do with governance). Didn't realize you were taking about their governance and am unaware of what protocols they use for that.

theapplekid

Uniswap's contracts are open source and lots of people fork them and deploy their own AMM liquidity pools based on them (their v3 contracts were closed for a while though, and v4 probably will be also when they come out) How exactly would you say their LPs are "centralized"? You can interact with them pseudonymously on the blockchain. People can even deploy their own pseudonymously. Most pools just distribute swap fees to the liquidity providers. *Some* pools also distribute a portion of swap fees to UNI token holders also (this is optional and a parameter of the pool set at deployment)

R4ID

After following the SEC v Ripple case very, very closely. the following is my speculation on why the SEC is going after Uniswap The SEC is going to claim that even tho ETH may be "sufficiently decentralized" Uniswap who built an AMM on ETH via a smart contract, Still controls and can edit the smart contract. Therefore the SEC is going to claim it is centralized and are going after Uniswap because they are an "unregulated broker dealer" Anyone who buys, sells and solicits orders for a counter party is a "Broker dealer" which the SEC specifically regulates. so think Robinhood, they are submitting orders on your behalf. the SEC is going to claim Uniswap is essentially doing this illegally. This key of this issue is going to have to break down to if Uniswap has control over peoples orders and facilitates them (via their AMM smart contract) Uniswap is gonna say they are decentralized, they dont control orders its just the procotol so they cant be a broker dealer. Again that is entirely speculation on my part, we dont know what the SEC is going after Uniswap for atm and wont for probly another 30ish days.

R4ID

the XRPL DEX, it was the first ever created, it has the lowest possible fees, it has the more currency pairs than any other exchange/dex, not a lot of people know about it or use it correctly so there's often a lot of opportunity's for arbitrage, You can exchange and redeem profits for real world value IOU's; IE I convert some of my trading profits into an IOU that represents XAU(Gold) and redeem them to get them mailed to me IRL. with the AMM launch about 24 hrs away, Autobridging and EVM sidechains now paired up with it, as well as Ripples Stablecoin expected later this year (probly around Oct/Nov "Swell" timeline) its crazy to me that more people dont use it.

CointestMod

#DEX Pro-Arguments Below is a DEX pro-argument written by Shippior. > A Decentralized Exchange, often abbreviated to DEX, is an exchange that does not belong to a central entity and all transactions happen on a blockchain. The three largest DEXs by [Total Value Locked](https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter) (TVL) are [Curve Finance](https://curve.fi/#/ethereum/swap), [Uniswap](https://uniswap.org/) and [PancakeSwap](https://pancakeswap.finance/). For a full list of DEXs see this [dashboard](https://defillama.com/protocols/Dexes). > > The largest difference between a CEX and a DEX is the way that liquidity is provided. Most CEXs use an [order book](https://learn.bybit.com/trading/order-book-explained-for-beginners/_ style ) for transactions. Most DEXs employ [Auto Mated Market Making](https://blog.0x.org/market-making-in-defi/) (AMM). These type of transactions are essential for operating an exchange with low liquidity. The supply and demand are matched by a protocol to prevent orders from not being fulfilled for a long time as there are generally less transaction offers available when there is lower liquidity. > > AMM works by users "lending" their crypto as collateral for others to trade. This is done by depositing tokens in a [liquidity pool](https://www.moonpay.com/learn/defi/what-are-liquidity-pools). Users are often provided incentive by the protocol to deposit their tokens by receiving a fixed interest rate on the crypto that they deposit. Therefore users who wanted to hold their crypto for the long term can actually put them in a pool via a smart contract to earn interest on this crypto without having to trade it whereas it would be collecting dust on an CEX. APRs are as high at 100%+ on larger DEXs like [Curve](https://curve.fi/#/ethereum/pools) and higher than 250% for smaller DEXs like [Crescent](https://app.crescent.network/farm). > > Trading fees of DEXs are mostly rather straightforward. Uniswap take a flat 0.3% trading fee, just like [Osmosis](https://osmosis.zone/) on each trade on top of the network transaction fee. Transaction fees can go as low as 0.02% for Curve Finance. These swap fees are provided to the people providing liquidity in the pool as an incentive for putting in their crypto. > > All trades made on a DEX are available as they can be found on the blockchain. Therefore it is possible to base your trading activity on the activities of other people. This also means that you can verify that your assets are where you think they are at all time. Your assets can not be lended to other people without you knowing of it and in most cases without you agreeing to it through the use of a smart contract. > > Compared to a CEX (with the exception of Coinbase) it is possible to own a part of the DEX. Many DEX have their own tokens. For example Curve Finance has [Curve DAO](https://coinmarketcap.com/currencies/curve-dao-token/) and Uniswap has [UNI](https://coinmarketcap.com/currencies/uniswap/). These tokens are used to pay for transaction fees on the DEX, they can be just held on to in the hope of them increasing in value but most important of all these tokens can be used to participate in governance. Everyone can put a proposal for improving a DEX, see the [Curve DAO](https://gov.curve.fi/) as an example for this, up for vote and everyone that owns the token of the DEX can vote (mostly 1 token = 1 vote) to determine how to go forward. Thus one can decide how to go forward to make the DEX even better. Something that is almost entirely impossible with a CEX. > > Privacy on a DEX is much better than on a CEX. On most DEXs no Know Your Customer (KYC) is required, a wallet that can not be linked to the person that is using it is sufficient. > > DEXs can have all assets on their platform that are available on the blockchain itself of made available through wrapped assets by [bridges](https://blog.liquid.com/blockchain-cross-chain-bridge). In theory the number of bridges that can be made between blockchains is infinite thereby the number of assets that can be listed on a DEX is also infinite. In reality though there are only bridges between the major blockchains available at the moment. This still provides plenty to chose from. According to Coinmarketcap there are currently [935 coins](https://www.coingecko.com/en/exchanges/uniswap#:~:text=Currently%2C%20there%20are%20938%20coins,a%2024h%20volume%20of%20%24319%2C357%2C719.14.) available to be traded on Uniswap and [3,223 coins](https://www.coingecko.com/en/exchanges/pancakeswap) on PancakeSwap. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DEX) to find submissions for other topics.

R4ID

> If they have that many clients why is the price still at 50 cents. not all 500+ Ripplenet members are using XRP/ODL services. Ripplenet doesnt solely consist of "XRP" related transactions, their network product suite includes other options which dont require XRP. ODL is the cheaper and faster option with more overall features, but many regions have regulatory issues in regards to using digital assets atm. This is why you see such a big push from Ripple for regulatory clarity. The price rising effect also kicks in with overall volume as most ODL trasactions only have a minor effect (buying 100$ XRP and then selling 100$ XRP is almost neutral) If you're looking at just ODL payments, its double digit billions atm each year. with the onboarding of a few new members each week and some that can utilize XRP the magic really happens when overall Volume kicks in. Has to do with the velocity of value being exchanged has a greater effect the more that is moving. They also have Multiple different verticals now starting to develop which when they kick in, will add to the demand (AMM, EVM sidechains, ILP/Autobridging, stablecoin, CBDCs) etc. there's a reason Ripple is spending Millions on Other devs to develop use cases utilizing XRP. Once you've solved a single problem, going Wide has a multiplying effect. each of those verticals add a compounding demand for XRP which with a fixed, deflationary supply leads to price increases.

R4ID

> Active wallets XRP wallets function differently than on other networks, Wallets arent free and there is a Cost to activate/create a wallet. you also have the destination tag system which allows each wallet to create a sub wallet within itself. a Single XRP wallet can contain 2^32 unique accounts or (4,294,967,296) total users for a single wallet. This makes tracking total active users difficult as exchanges and many other places use a single wallet for hundreds of thousands of users. Total activated wallets passed 5 Million this year in Jan, its now at 5.135 Million in April, there is slow steady growth if you look at wallet activations. >txs have not increased on Ripple in the past 12 months average daily transactions atm is ~1.2 Million, 12 months ago it was ~900k. Not an insane growth I'd agree, but with AMM on the eve of relaunch in a few days, EVM sidechains now being online. Auto-bridging about to take effect and Ripples Stablecoin launch this year at some point (Id guess Around Swell, so Oct/Nov) Id say by December of this year it wouldnt be crazy to expect a rather large spike overall in network activity. > but how long before it drops out of the Top 10? LTC, BCH, EOS, TRON and XLM were top 10 coins 5 years ago. XRP has hasnt left the top 10 ever and its been around longer than BCH and EOS combined. in fact the only coin older than it that would be considered "still active" would be BTC and LTC. I think as far as "test of time" goes, XRP has passed just fine. >Continued steady decline in any project would leave me unwilling to bet on their future 20 years from now. there is no decline, only data and understanding how to read it. >ETH has name brand recognition now, but people always eventually move onto better options. Both Solana and Base have seen periods recently where overall activity has topped Ethereum, which is something new for this cycle, unimaginable last cycle. Say what you want about memecoins, but they are bringing new users to these chains and proving their usability. The memecoin casino game eventually does run out and isnt really "healthy" for the ecosystem (I would expect it to transition to some other blockchain next run and repeat again) It's issue tho is for every 1 user who makes insane profit, there are thousands that just experienced their first rug pull and will be turned sour to crypto as a whole forever. I will say one thing that I am rather surprised about is people are still interested in using SOL tho. Given the whole "failed transactions" debacle atm, I would of assumed people would prefer to use something that actually works.

R4ID

> Both those projects look weaker now than they have in previous cycles. Ripple has gone from 300+ Ripplenet customers to 500+ ripplenet customers. with EVM sidechains, The AMM and now the stable coin announcement. its been nothing but growth and improvement from last cycle to this one. that doesnt even include all the devs now developing on the XRPL from last cycle to now. XRP has only grown cycle to cycle. >I meant that another project can come along and improve on what ETH is doing, in turn replacing it. Some are already close. Many already can do what "ETH does" better than it currently, but if they dont get that "name brand" recognition, it wont matter. VHS/Betamax right? >Aside from Bitcoin, I'd say that every single project is replaceable. Others that look too strong to die might become the crypto equivalent of AOL or MySpace. I mean, just looking at the top 10, I could really only see that for say USDT, BNB and USDC. and each would require something catastrophic to happen to their main org. Some sort of major depeg from the stablecoins could shake trust in them and cause problems for sure. and Maybe something crazy happens to Binance which would def hurt BNB. but again, they each require something pretty major to happen to make them not a thing anymore.

R4ID

I mean, XRP because it JUST launched the AMM. it had Zero TVL. in the first day it had more TVL than Uniswap had after its first 3 months. now with Ripple planning a stablecoin launch, EVM sidechains being live. Autobridging and the unique AMM features will skyrocket its TVL.

AsbestosDude

I regularly leverage positions for higher yield between indigo protocol and liqwid finance typically using iUSD and USDm to increase my exposure. I look for lending opportunities on levvy and lenfi snce they tend to give pretty good yields I look for arbitrages between Dexhunter which aggregates all the AMM swaps and Axo trade since it's an orderbook and not connected yet to the aggregator. I have a spread market making strategy running on Axo which automatically trades the stablecoins when there is a depeg greater than 1 cent. other than that just I just play around with a few gamified staking dapps and move around positions to yield farm on various Dexs

gr8ful4

You are new to atomic swaps, P2P markets, DEX like bisq or Haveno, AMM like Serai or simple insta swap exchanges?

CointestMod

#DEX Pro-Arguments Below is a DEX pro-argument written by Shippior. > A Decentralized Exchange, often abbreviated to DEX, is an exchange that does not belong to a central entity and all transactions happen on a blockchain. The three largest DEXs by [Total Value Locked](https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter) (TVL) are [Curve Finance](https://curve.fi/#/ethereum/swap), [Uniswap](https://uniswap.org/) and [PancakeSwap](https://pancakeswap.finance/). For a full list of DEXs see this [dashboard](https://defillama.com/protocols/Dexes). > > The largest difference between a CEX and a DEX is the way that liquidity is provided. Most CEXs use an [order book](https://learn.bybit.com/trading/order-book-explained-for-beginners/_ style ) for transactions. Most DEXs employ [Auto Mated Market Making](https://blog.0x.org/market-making-in-defi/) (AMM). These type of transactions are essential for operating an exchange with low liquidity. The supply and demand are matched by a protocol to prevent orders from not being fulfilled for a long time as there are generally less transaction offers available when there is lower liquidity. > > AMM works by users "lending" their crypto as collateral for others to trade. This is done by depositing tokens in a [liquidity pool](https://www.moonpay.com/learn/defi/what-are-liquidity-pools). Users are often provided incentive by the protocol to deposit their tokens by receiving a fixed interest rate on the crypto that they deposit. Therefore users who wanted to hold their crypto for the long term can actually put them in a pool via a smart contract to earn interest on this crypto without having to trade it whereas it would be collecting dust on an CEX. APRs are as high at 100%+ on larger DEXs like [Curve](https://curve.fi/#/ethereum/pools) and higher than 250% for smaller DEXs like [Crescent](https://app.crescent.network/farm). > > Trading fees of DEXs are mostly rather straightforward. Uniswap take a flat 0.3% trading fee, just like [Osmosis](https://osmosis.zone/) on each trade on top of the network transaction fee. Transaction fees can go as low as 0.02% for Curve Finance. These swap fees are provided to the people providing liquidity in the pool as an incentive for putting in their crypto. > > All trades made on a DEX are available as they can be found on the blockchain. Therefore it is possible to base your trading activity on the activities of other people. This also means that you can verify that your assets are where you think they are at all time. Your assets can not be lended to other people without you knowing of it and in most cases without you agreeing to it through the use of a smart contract. > > Compared to a CEX (with the exception of Coinbase) it is possible to own a part of the DEX. Many DEX have their own tokens. For example Curve Finance has [Curve DAO](https://coinmarketcap.com/currencies/curve-dao-token/) and Uniswap has [UNI](https://coinmarketcap.com/currencies/uniswap/). These tokens are used to pay for transaction fees on the DEX, they can be just held on to in the hope of them increasing in value but most important of all these tokens can be used to participate in governance. Everyone can put a proposal for improving a DEX, see the [Curve DAO](https://gov.curve.fi/) as an example for this, up for vote and everyone that owns the token of the DEX can vote (mostly 1 token = 1 vote) to determine how to go forward. Thus one can decide how to go forward to make the DEX even better. Something that is almost entirely impossible with a CEX. > > Privacy on a DEX is much better than on a CEX. On most DEXs no Know Your Customer (KYC) is required, a wallet that can not be linked to the person that is using it is sufficient. > > DEXs can have all assets on their platform that are available on the blockchain itself of made available through wrapped assets by [bridges](https://blog.liquid.com/blockchain-cross-chain-bridge). In theory the number of bridges that can be made between blockchains is infinite thereby the number of assets that can be listed on a DEX is also infinite. In reality though there are only bridges between the major blockchains available at the moment. This still provides plenty to chose from. According to Coinmarketcap there are currently [935 coins](https://www.coingecko.com/en/exchanges/uniswap#:~:text=Currently%2C%20there%20are%20938%20coins,a%2024h%20volume%20of%20%24319%2C357%2C719.14.) available to be traded on Uniswap and [3,223 coins](https://www.coingecko.com/en/exchanges/pancakeswap) on PancakeSwap. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DEX) to find submissions for other topics.

Comicksands

Lol. If you read you’ll know why it’s different from Uniswap. AMM vs order book has been a long discussion for years. They seem to have been able to solve order book chain at scale for the first time

R4ID

> Late to the game the concept of Stablecoins were created via the XRPL. the first ever was invented on the XRPL.... they arent late to the game. they are improving their newest features being an EVM sidechain and AMM amendment LP pools.

R4ID

>bad for XRP as it clearly shows that the company is pivoting away from XRP. XRP and stablecoins dont solve the same problem, they arent competing. you dont understand how either work if you think this is bad for either. >Why do they even launch on ethereum if they believe in XRPL? the EVM sidechain has launched, and AMM amendment just passed.

R4ID

>Good for Ripple. Not so much for XRP. its good for both. > The intended utility of XRP (as an optional token for its real-time gross settlement system) is continually narrowing because of stable coins and other emerging solutions. Stablecoins and XRP do not compete, they do not solve the same problem in the same way. you dont understand Either if you think they do. >It makes sense that Ripple would pivot into a proven model of stable coin issuance. They have EVM sidechains that are now linked to ETH and just had the AMM launch. they want a high quality stablecoin instead of relying on 3rd parties which they have been doing since 2012 when they INVENTED the first stablecoin ever. >But their new stable coin will indirectly compete with the XRP token. they dont solve the same problem, so no, no they will not.

R4ID

ITT people dont understand how XRP solves problems. Stablecoins Were not only invented by Ripple in 2012 but they have existed on chain in almost every currency for the XRPL, it is just now Ripple is going to back one instead of relying on 3rd party stablecoins. This coin is going to be a dual issuance, one ERC-20 version on ETH and another on the XRPL. This is most likely because of the recent AMM amendment to help provide more liquidity with more currency pairs as well as to bridge the EVM sidechains between ETH and XRP. Can't wait for every comment in here to be just absolutely clueless with potato IQ takes on this news tho.

CryptoNerdSmacker

Here come all the galaxy brained takes on Ripple, XRP, etc. Interesting to see how this all plays out. Right on time with the AMM update too. Worth keeping an eye on.

john-larry

Delistings from CEX are the best avenue for attacking Monero. So far we can still rely on Kraken but who knows for how long. Fortunately we have many DEX options on the horizon. Monero is already the most traded on Bisq despite it being expensive to use. We have localmonero.co where you can also buy p2p. Atomic swaps are already live and can be used through eg. BasicSwapDex or unstoppableswap.net . Within likely the next year we will also have Haveno and SeraiDEX. Haveno is a fork of bisq that is based on Monero instead of Bitcoin. It will make it way more user friendly and cheap to use. SeraiDEX will be a crypto to crypto automated market maker (AMM) similar to uniswap. This means that trades can be facilitated way faster than through most other options because you don’t have to wait for a vendor to accept your offer. Point being, Monero will be fully tradeable on DEXs in the future. The current issue is liquidity but with more and more delistings, liquidity will move to DEXs. Currently Monero is very cheap due to the delisting / banning fears but there will be a time where this won’t matter. Now is the time to accumulate.

Necessary_Petals

Aerodrome Finance is a next-generation AMM designed to serve as Base's central liquidity hub; Aerodrome accounts for nearly half of Base’s TVL

parvashasan12

Huge news in the DeFi world! Aerodrome (AERO), the next-gen AMM and liquidity hub for Base chain, is getting listed on Bitget. Can't wait to start providing liquidity and earning those juicy incentives.

wateerrrr

It’s part of the OP ecosystem. They are both developed in it but Velo is for AMM for Optimism

CryptoBankSignals

Aerodrome: A DeFi Powerhouse Poised for Takeoff in a Bull Market Don't worry about the short term and focus on what this project actually is. It's a DEX backed by Coinbase. It's here to stay for possibly forever. Hope you find this write-up helpful. Disclaimer: I own about 1.3 million AERO (see my screenshot/video proof in profile or AERO subreddit) so my analysis is obviously pro AERO "Time in the market is better than trying to time the market" The decentralized finance (DeFi) landscape is brimming with innovation, and Aerodrome, the native AMM DEX on the optimistic Ethereum L2 scaling solution, Base, is poised for a meteoric rise in a potential bull market. Here's a breakdown of the bullish factors propelling Aerodrome towards a future of explosive growth: **Base Network: The Rocket Fuel** * **Ethereum's Scaling Savior:** Ethereum, the dominant smart contract platform, suffers from scalability issues. Base, with its faster transaction speeds and lower fees, positions itself as a frontrunner in solving Ethereum's woes. This mass exodus to L2 solutions could drive immense user growth for Base. * **Early Mover Advantage on Base:** Aerodrome stands as the first mover DEX on Base. This prime position allows it to capture a significant share of liquidity and user activity as the Base network flourishes. **Aerodrome's Technical Prowess** * **AMM Efficiency:** Aerodrome leverages an automated market maker (AMM) model, facilitating seamless token trading without the complexities of order books. This user-friendly approach attracts both experienced DeFi veterans and newcomers. * **Vote-locking Rewards:** AERO holders can lock their tokens to earn rewards and participate in governance decisions. This incentivizes holding and fosters a strong community around Aerodrome. **Projecting Aerodrome's Market Cap in a Bull Run** Predicting market caps with absolute certainty is impossible, but here's a glimpse into a possible future fueled by a DeFi bull market: * **The Base Effect:** If Base captures even a **10% share** of Ethereum's current TVL (around $300 billion), it would translate to a $30 billion TVL for Base. Assuming Aerodrome captures a dominant **50% share** of this Base TVL, its market cap could reach a staggering **$15 billion**. (This assumes a conservative 0.5 market cap to TVL ratio, which can be higher for DEXes during bull runs) This means a 49x from current price of $0.842 meaning each AERO reaches $41± (assuming no change in total circulating supply) * **The Network Effect Multiplier:** In a bull market, network effects become amplified. As more users flock to Aerodrome for its efficiency and Base's scalability, liquidity deepens, attracting even more users, creating a snowball effect. This could push Aerodrome's market cap even higher. **Synergistic Factors:** * **Base's Feature Integration:** Potential future integrations between Base and Aerodrome, such as native fiat on-ramps or novel security mechanisms, could further solidify Aerodrome's position within the Base ecosystem. * **A Flourishing DeFi Ecosystem:** A bull market typically fuels the entire DeFi space. Rising valuations across the DeFi sector would likely positively impact Aerodrome's market cap. **Aerodrome: A compelling Investment Opportunity** Aerodrome presents a compelling opportunity for investors seeking exposure to the potential explosion of the Base network and the broader DeFi market. Its innovative features, strong community focus, and first-mover advantage on Base position it for substantial growth. **Important Considerations:** * **Market Volatility:** The cryptocurrency market is inherently volatile. Bull markets can be followed by corrections. * **Base Network Adoption:** The success of Aerodrome hinges on Base network adoption. **Aerodrome: A Front-Seat Ticket to the DeFi Future** While the future is uncertain, Aerodrome offers a captivating proposition for investors with a bullish outlook on DeFi. With its strategic positioning and feature-rich platform, Aerodrome is well-equipped to become a dominant player in the Base network and a major force within the ever-evolving DeFi landscape. **Disclaimer:** This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions.

coinfeeds-bot

tldr; RippleX, the developer arm behind the XRP Ledger (XRPL), has detected a technical glitch affecting certain Automated Market Maker (AMM) pools on the XRPL, leading to transaction disruptions. Users are advised against depositing funds into the affected pools and urged to withdraw their liquidity provider (LP) tokens until the issue is resolved. The glitch has prompted mixed reactions within the XRPL community, with some concerned about network reliability and others praising RippleX's transparency. Several XRPL-based projects have temporarily suspended connections to the affected AMM pools in response. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

coinfeeds-bot

tldr; RippleX, Ripple's development division, has identified a technical glitch affecting Automated Market Maker (AMM) pools on the XRP Ledger, leading to incorrect transaction processing. This issue impacts a limited number of AMM pools, which are crucial for decentralized exchanges by allowing direct asset swaps without traditional order books. RippleX advises users to avoid depositing funds into the affected pools and to redeem any liquidity provider tokens they hold. The technical team is actively working to resolve the issue and has urged the community to follow official updates for further information. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

CointestMod

#DEX Pro-Arguments Below is a DEX pro-argument written by Shippior. > A Decentralized Exchange, often abbreviated to DEX, is an exchange that does not belong to a central entity and all transactions happen on a blockchain. The three largest DEXs by [Total Value Locked](https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter) (TVL) are [Curve Finance](https://curve.fi/#/ethereum/swap), [Uniswap](https://uniswap.org/) and [PancakeSwap](https://pancakeswap.finance/). For a full list of DEXs see this [dashboard](https://defillama.com/protocols/Dexes). > > The largest difference between a CEX and a DEX is the way that liquidity is provided. Most CEXs use an [order book](https://learn.bybit.com/trading/order-book-explained-for-beginners/_ style ) for transactions. Most DEXs employ [Auto Mated Market Making](https://blog.0x.org/market-making-in-defi/) (AMM). These type of transactions are essential for operating an exchange with low liquidity. The supply and demand are matched by a protocol to prevent orders from not being fulfilled for a long time as there are generally less transaction offers available when there is lower liquidity. > > AMM works by users "lending" their crypto as collateral for others to trade. This is done by depositing tokens in a [liquidity pool](https://www.moonpay.com/learn/defi/what-are-liquidity-pools). Users are often provided incentive by the protocol to deposit their tokens by receiving a fixed interest rate on the crypto that they deposit. Therefore users who wanted to hold their crypto for the long term can actually put them in a pool via a smart contract to earn interest on this crypto without having to trade it whereas it would be collecting dust on an CEX. APRs are as high at 100%+ on larger DEXs like [Curve](https://curve.fi/#/ethereum/pools) and higher than 250% for smaller DEXs like [Crescent](https://app.crescent.network/farm). > > Trading fees of DEXs are mostly rather straightforward. Uniswap take a flat 0.3% trading fee, just like [Osmosis](https://osmosis.zone/) on each trade on top of the network transaction fee. Transaction fees can go as low as 0.02% for Curve Finance. These swap fees are provided to the people providing liquidity in the pool as an incentive for putting in their crypto. > > All trades made on a DEX are available as they can be found on the blockchain. Therefore it is possible to base your trading activity on the activities of other people. This also means that you can verify that your assets are where you think they are at all time. Your assets can not be lended to other people without you knowing of it and in most cases without you agreeing to it through the use of a smart contract. > > Compared to a CEX (with the exception of Coinbase) it is possible to own a part of the DEX. Many DEX have their own tokens. For example Curve Finance has [Curve DAO](https://coinmarketcap.com/currencies/curve-dao-token/) and Uniswap has [UNI](https://coinmarketcap.com/currencies/uniswap/). These tokens are used to pay for transaction fees on the DEX, they can be just held on to in the hope of them increasing in value but most important of all these tokens can be used to participate in governance. Everyone can put a proposal for improving a DEX, see the [Curve DAO](https://gov.curve.fi/) as an example for this, up for vote and everyone that owns the token of the DEX can vote (mostly 1 token = 1 vote) to determine how to go forward. Thus one can decide how to go forward to make the DEX even better. Something that is almost entirely impossible with a CEX. > > Privacy on a DEX is much better than on a CEX. On most DEXs no Know Your Customer (KYC) is required, a wallet that can not be linked to the person that is using it is sufficient. > > DEXs can have all assets on their platform that are available on the blockchain itself of made available through wrapped assets by [bridges](https://blog.liquid.com/blockchain-cross-chain-bridge). In theory the number of bridges that can be made between blockchains is infinite thereby the number of assets that can be listed on a DEX is also infinite. In reality though there are only bridges between the major blockchains available at the moment. This still provides plenty to chose from. According to Coinmarketcap there are currently [935 coins](https://www.coingecko.com/en/exchanges/uniswap#:~:text=Currently%2C%20there%20are%20938%20coins,a%2024h%20volume%20of%20%24319%2C357%2C719.14.) available to be traded on Uniswap and [3,223 coins](https://www.coingecko.com/en/exchanges/pancakeswap) on PancakeSwap. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DEX) to find submissions for other topics.

CryptoBankSignals

First of all I'm all in. I have around $1,000,000 USD invested, so this might be biased. Aerodrome.Finance (AERO) and it's first mover advantage Aerodrome, an AMM aggregator built on Base, a Layer 2 scaling solution for Coinbase, is considered a promising project with potential for significant growth. Here's a breakdown of the bullish points: * **Early mover advantage:** Aerodrome is the first AMM on Base, positioning it to benefit from the growth of the Base ecosystem. * **Sustainable model:** Unlike many projects, Aerodrome has a locked token supply and doesn't rely on venture capital, reducing sell pressure. It also incentivizes users through veNFT rewards for participation. * **Strong growth:** Aerodrome's TVL has been growing rapidly, indicating increasing user adoption. * **Integration with Velodrome:** Participation in Velodrome's Slipstream is expected to bring significant trading volume to Aerodrum. * **Reduced fees:** With recent Ethereum upgrades lowering transaction fees, Aerodrum on Base is poised to attract more users. * **Potential for high APY:** Aerodrome offers high yields for liquidity providers. To me, Aerodrome presents an attractive opportunity due to its first-mover advantage, sustainable economic model, and the growth potential of the Base ecosystem. Price predictions: It's currently hovering at about $0.71± with a recent pullback after making new highs. This is so cheap compared to what it will likely be as the market cap is only currently around $250± Million. Whereas similar DEX platforms like Uniswap is currently at $10.5 Billion. To catch up to Uniswap which seems easy due to the broad customer base of Coinbase and BASE, it could easily surpass Uniswap in this bull run. If it just manages to catch up to Uniswap at CURRENT market caps, it'll be a 42x±. Which means a $30 AERO. When UNI was at its peak market cap during last bull run, it was at $33.86 Billion MC, that would be an 135x AERO equivalent to $97 per AERO. Let's not get hasty but it's safe to say that $5-$10 AERO is an easy target. We are just at the beginning of the bull run and this is still a tiny market cap coin that has managed to fly under the radar. We are in exciting times people. Let's make some money together! ------- (Not financial advice, this is just my personal opinion)

CryptoBankSignals

First of all I'm all in. I have around $1,000,000 USD invested, so this might be biased. Aerodrome.Finance (AERO) and it's first mover advantage Aerodrome, an AMM aggregator built on Base, a Layer 2 scaling solution for Coinbase, is considered a promising project with potential for significant growth. Here's a breakdown of the bullish points: * **Early mover advantage:** Aerodrome is the first AMM on Base, positioning it to benefit from the growth of the Base ecosystem. * **Sustainable model:** Unlike many projects, Aerodrome has a locked token supply and doesn't rely on venture capital, reducing sell pressure. It also incentivizes users through veNFT rewards for participation. * **Strong growth:** Aerodrome's TVL has been growing rapidly, indicating increasing user adoption. * **Integration with Velodrome:** Participation in Velodrome's Slipstream is expected to bring significant trading volume to Aerodrum. * **Reduced fees:** With recent Ethereum upgrades lowering transaction fees, Aerodrum on Base is poised to attract more users. * **Potential for high APY:** Aerodrome offers high yields for liquidity providers. To me, Aerodrome presents an attractive opportunity due to its first-mover advantage, sustainable economic model, and the growth potential of the Base ecosystem. Price predictions: It's currently hovering at about $0.71± with a recent pullback after making new highs. This is so cheap compared to what it will likely be as the market cap is only currently around $250± Million. Whereas similar DEX platforms like Uniswap is currently at $10.5 Billion. To catch up to Uniswap which seems easy due to the broad customer base of Coinbase and BASE, it could easily surpass Uniswap in this bull run. If it just manages to catch up to Uniswap at CURRENT market caps, it'll be a 42x±. Which means a $30 AERO. When UNI was at its peak market cap during last bull run, it was at $33.86 Billion MC, that would be an 135x AERO equivalent to $97 per AERO. Let's not get hasty but it's safe to say that $5-$10 AERO is an easy target. We are just at the beginning of the bull run and this is still a tiny market cap coin that has managed to fly under the radar. We are in exciting times people. Let's make some money together! ------- (Not financial advice, this is just my personal opinion)

CryptoBankSignals

First of all I'm all in. I have around $1,000,000 USD invested, so this might be biased. Aerodrome.Finance (AERO) and it's first mover advantage Aerodrome, an AMM aggregator built on Base, a Layer 2 scaling solution for Coinbase, is considered a promising project with potential for significant growth. Here's a breakdown of the bullish points: * **Early mover advantage:** Aerodrome is the first AMM on Base, positioning it to benefit from the growth of the Base ecosystem. * **Sustainable model:** Unlike many projects, Aerodrome has a locked token supply and doesn't rely on venture capital, reducing sell pressure. It also incentivizes users through veNFT rewards for participation. * **Strong growth:** Aerodrome's TVL has been growing rapidly, indicating increasing user adoption. * **Integration with Velodrome:** Participation in Velodrome's Slipstream is expected to bring significant trading volume to Aerodrum. * **Reduced fees:** With recent Ethereum upgrades lowering transaction fees, Aerodrum on Base is poised to attract more users. * **Potential for high APY:** Aerodrome offers high yields for liquidity providers. To me, Aerodrome presents an attractive opportunity due to its first-mover advantage, sustainable economic model, and the growth potential of the Base ecosystem. Price predictions: It's currently hovering at about $0.71± with a recent pullback after making new highs. This is so cheap compared to what it will likely be as the market cap is only currently around $250± Million. Whereas similar DEX platforms like Uniswap is currently at $10.5 Billion. To catch up to Uniswap which seems easy due to the broad customer base of Coinbase and BASE, it could easily surpass Uniswap in this bull run. If it just manages to catch up to Uniswap at CURRENT market caps, it'll be a 42x±. Which means a $30 AERO. When UNI was at its peak market cap during last bull run, it was at $33.86 Billion MC, that would be an 135x AERO equivalent to $97 per AERO. Let's not get hasty but it's safe to say that $5-$10 AERO is an easy target. We are just at the beginning of the bull run and this is still a tiny market cap coin that has managed to fly under the radar. We are in exciting times people. Let's make some money together! ------- (Not financial advice, this is just my personal opinion)

CryptoBankSignals

Aerodrome.Finance (AERO) and it's first mover advantage Aerodrome, an AMM aggregator built on Base, a Layer 2 scaling solution for Coinbase, is considered a promising project with potential for significant growth. Here's a breakdown of the bullish points: * **Early mover advantage:** Aerodrome is the first AMM on Base, positioning it to benefit from the growth of the Base ecosystem. * **Sustainable model:** Unlike many projects, Aerodrome has a locked token supply and doesn't rely on venture capital, reducing sell pressure. It also incentivizes users through veNFT rewards for participation. * **Strong growth:** Aerodrome's TVL has been growing rapidly, indicating increasing user adoption. * **Integration with Velodrome:** Participation in Velodrome's Slipstream is expected to bring significant trading volume to Aerodrum. * **Reduced fees:** With recent Ethereum upgrades lowering transaction fees, Aerodrum on Base is poised to attract more users. * **Potential for high APY:** Aerodrome offers high yields for liquidity providers. To me, Aerodrome presents an attractive opportunity due to its first-mover advantage, sustainable economic model, and the growth potential of the Base ecosystem. Price predictions: It's currently hovering at about $0.71± with a recent pullback after making new highs. This is so cheap compared to what it will likely be as the market cap is only currently around $250± Million. Whereas similar DEX platforms like Uniswap is currently at $10.5 Billion. To catch up to Uniswap which seems easy due to the broad customer base of Coinbase and BASE, it could easily surpass Uniswap in this bull run. If it just manages to catch up to Uniswap at CURRENT market caps, it'll be a 42x±. Which means a $30 AERO. When UNI was at its peak market cap during last bull run, it was at $33.86 Billion MC, that would be an 135x AERO equivalent to $97 per AERO. Let's not get hasty but it's safe to say that $5-$10 AERO is an easy target. We are just at the beginning of the bull run and this is still a tiny market cap coin that has managed to fly under the radar. We are in exciting times people. Let's make some money together! ------- (Not financial advice, this is just my personal opinion)

coachhunter2

The XRP ledger now has native AMM capability. No smart contracts required.

CryptoBankSignals

Aerodrome.Finance (AERO) and it's first mover advantage Aerodrome, an AMM aggregator built on Base, a Layer 2 scaling solution for Coinbase, is considered a promising project with potential for significant growth. Here's a breakdown of the bullish points: * **Early mover advantage:** Aerodrome is the first AMM on Base, positioning it to benefit from the growth of the Base ecosystem. * **Sustainable model:** Unlike many projects, Aerodrome has a locked token supply and doesn't rely on venture capital, reducing sell pressure. It also incentivizes users through veNFT rewards for participation. * **Strong growth:** Aerodrome's TVL has been growing rapidly, indicating increasing user adoption. * **Integration with Velodrome:** Participation in Velodrome's Slipstream is expected to bring significant trading volume to Aerodrum. * **Reduced fees:** With recent Ethereum upgrades lowering transaction fees, Aerodrum on Base is poised to attract more users. * **Potential for high APY:** Aerodrome offers high yields for liquidity providers. To me, Aerodrome presents an attractive opportunity due to its first-mover advantage, sustainable economic model, and the growth potential of the Base ecosystem. Price predictions: It's currently hovering at about $0.71± with a recent pullback after making new highs. This is so cheap compared to what it will likely be as the market cap is only currently around $250± Million. Whereas similar DEX platforms like Uniswap is currently at $10.5 Billion. To catch up to Uniswap which seems easy due to the broad customer base of Coinbase and BASE, it could easily surpass Uniswap in this bull run. If it just manages to catch up to Uniswap at CURRENT market caps, it'll be a 42x±. Which means a $30 AERO. When UNI was at its peak market cap during last bull run, it was at $33.86 Billion MC, that would be an 135x AERO equivalent to $97 per AERO. Let's not get hasty but it's safe to say that $5-$10 AERO is an easy target. We are just at the beginning of the bull run and this is still a tiny market cap coin that has managed to fly under the radar. We are in exciting times people. Let's make some money together! ------- (Not financial advice, this is just my personal opinion)

chintokkong

David Schwartz has been testing a bot like that of XRPL’s AMM trading SOL on a CEX: https://x.com/joelkatz/status/1770852455670063172?s=61&t=Onf0L7P1MHOIzAlYQrg04g

Shakalaka8006

Celer's liquidity pool-based bridge employs a StableSwap AMM curve to calculate the bridge rate which makes sure the bridge rate is always close to or at 1 unless there is significant liquidity imbalance between the two pools. Anyone can add liquidity and earn some yield as incentives similar to how one would get returns on the liquidity provided on DEXes.

crashbdx

Thanks for the kind words, right now the token is not yet circulating, we just started the private sale round that is open until March 31. After that, we'll have a marketing campaign prior to the public sale that will be end of April. Then we will start listing on AMM and Exchanges from there.

shadowdax

Do you even know what TVL is? It is a concept that didn't exist until Ethereum. No one in traditional finance talks about TVL. To provide liquidity on Ethereum you have to lock your funds into a liquidity pool and then trust in an AMM (automated market maker) with the world's dumbest market making algorithm (xy=k) and then they rebrand adverse selection as "impermanent loss". These things are a laughing stock to any modern electronic market maker. They only exist because Ethereum is too slow to offer a limit order book. Can you imagine using a limit order book on Ethereum? Every time you inserted or deleted a limit order you'd pay $50. You'd wait 11 seconds for it to update. I too would lock my capital if it were too expensive to move, and I would delegate my liquidity provision to a dumb uniswap curve if it were too expensive to place orders myself. No one particularly needs to lock liquidity on Solana, because dexes like Phoenix can use LOBs, and you can move capital for a fraction of a cent. It's over for you. You should be scared. - 44 days since last outage (19hrs) - 11 outages in 2 years It is 8 outages in 4 years. Last outage was February 6th and lasted 5 hours, not 19 hours. I thought you never made mistakes? I've been there for most all of them, and each has been rectified along the way. There has now been one in the last 13 months, despite facing the largest traffic any blockchain has ever handled. Besides that, I genuinely couldn't care less about the outages. I care about it like I care about SpaceX blowing up a rocket. I do not want Solana to be an ossified stack of rotting technical debt. I fully expect them to keep pushing aggressively until they hit the limits of commodity hardware, which is still at least a 10x speedup from here. * inflated like a memecoin \~70% inflation in 3 yrs You're allowed to look up the Ethereum inflation schedule in the first few years. You can see it here: [https://ethresear.ch/t/analysis-and-projection-of-ethers-inflation-rate/10341](https://ethresear.ch/t/analysis-and-projection-of-ethers-inflation-rate/10341) This is pretty standard for a newly launched L1?

FrankOfTomPads

You forgot to mention AERO or aerodrome finance which is backed by Coinbase ventures themselves. What is Aerodrome Finance? Aerodrome Finance is an automated market maker (AMM) built on the Base network. Think of an AMM as a platform where cryptocurrency trades happen automatically, without the need for a traditional order book. Aerodrome aspires to be the central hub for liquidity on Base, similar to how Uniswap is on Ethereum. Here are some key features: Liquidity Incentive Engine: This system aims to attract users by rewarding them with AERO tokens for providing liquidity (basically, adding funds to the trading pool). Vote-locked Governance: Holders of AERO can lock their tokens for a set period to gain voting rights on the protocol's future. The longer the lock-up period, the more voting weight a user has. Friendly User Experience: Aerodrome aims to be easy to use for newcomers to DeFi (Decentralized Finance). AERO Coin AERO is the utility token of Aerodrome Finance. Here's what you can do with it: Earn rewards: As mentioned earlier, you can earn AERO by providing liquidity. Governance: Lock your AERO to participate in voting on the protocol's development. Pros and Cons of Aerodrome Finance Pros: Base Network: Built on Base, which is a new network backed by Coinbase, a reputable name in the crypto world. This could give Aerodrome a boost in visibility and adoption. Focus on Liquidity: The incentive engine and governance model are designed to attract liquidity providers, which is crucial for a successful AMM. User-friendly Interface: If Aerodrome delivers on its promise of a user-friendly experience, it could attract more people to DeFi. Cons: New Project: Aerodrome is a relatively new project, launched in 2023. This means it has a shorter track record compared to established AMMs. Competition: The DeFi space is crowded with AMMs, each with its own features. Aerodrome needs to stand out to capture market share. Reliance on Base Network: Aerodrome's success is tied to the success of the Base network. If Base doesn't gain traction, it could impact Aerodrome. Here's some reasoning to consider for AERO's future value: If Base Network takes off: As Base gains users and adoption, Aerodrome, as its central liquidity hub, could benefit significantly. This could drive up the price of AERO. Overall DeFi market: The general sentiment towards DeFi will also play a role. If DeFi continues to grow, AERO could rise in value along with other DeFi tokens. Competition: How Aerodrome competes with other AMMs will be a key factor. If it can offer unique features or attract more liquidity, the price could go up. If Base Network experiences significant growth and adoption, Aerodrome, as its core AMM, could see a surge in usage. This rise in demand for AERO's liquidity providing and governance functions could drive the price up. Possible Price Range (This is not financial advice): In this scenario, AERO's price could reach anywhere between $5-10 by the end of 2024. This bull market will be insane. The coins that rise with Bitcoin and have utility with a strong community will change lives. It's currently hovering at about $0.71± with a recent pullback after making new highs. This is so cheap compared to what it will likely be as the market cap is only currently around $250± Million. Whereas similar DEX platforms like Uniswap is currently at $10.5 Billion. To catch up to Uniswap which seems easy due to the broad customer base of Coinbase and BASE, it could easily surpass Uniswap in this bull run. If it just manages to catch up to Uniswap at CURRENT market caps, it'll be a 42x±. Which means a $30 AERO. When UNI was at its peak market cap during last bull run, it was at $33.86 Billion MC, that would be an 135x AERO equivalent to $97 per AERO. Let's not get hasty but it's safe to say that $5-$10 AERO is an easy target. We are just at the beginning of the bull run and this is still a tiny market cap coin that has managed to fly under the radar. We are in exciting times people. Let's make some money together! ------- (Not financial advice, this is just my personal opinion)

TrueDreamchaser

I just don’t understand if people aren’t researching at all or don’t get how markets work. BOME was ISSUED with a market cap of basically $1b. They simply issued a massive supply, chose a price that would give them a high market cap, and then created an AMM to buy at that high price. This is what happens when you assign false value to something worthless. If you want to make gains, pay attention to the trajectory of the market cap, not how high it is. TLDR: Market cap isn’t real and can be manipulated. If an asset was launched with a high market cap, it doesn’t mean it’s actually worth the price it’s at.

Psykotixx

SEC case nearly wrapped up. XRPL AMM (Automated Market Maker) Update soon Automated Market Maker ISO 20022 Compliant. Ripple "working with over 28 countries and a prominent central bank" according to CBO of Zoniqx Utilization of XRPL for Tokenization. Tons of interoperability developments. Ripple never stopped because of SEC... They just had to stop talking about it. Let them sleep on it.

CointestMod

#DEX Pro-Arguments Below is a DEX pro-argument written by Shippior. > A Decentralized Exchange, often abbreviated to DEX, is an exchange that does not belong to a central entity and all transactions happen on a blockchain. The three largest DEXs by [Total Value Locked](https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter) (TVL) are [Curve Finance](https://curve.fi/#/ethereum/swap), [Uniswap](https://uniswap.org/) and [PancakeSwap](https://pancakeswap.finance/). For a full list of DEXs see this [dashboard](https://defillama.com/protocols/Dexes). > > The largest difference between a CEX and a DEX is the way that liquidity is provided. Most CEXs use an [order book](https://learn.bybit.com/trading/order-book-explained-for-beginners/_ style ) for transactions. Most DEXs employ [Auto Mated Market Making](https://blog.0x.org/market-making-in-defi/) (AMM). These type of transactions are essential for operating an exchange with low liquidity. The supply and demand are matched by a protocol to prevent orders from not being fulfilled for a long time as there are generally less transaction offers available when there is lower liquidity. > > AMM works by users "lending" their crypto as collateral for others to trade. This is done by depositing tokens in a [liquidity pool](https://www.moonpay.com/learn/defi/what-are-liquidity-pools). Users are often provided incentive by the protocol to deposit their tokens by receiving a fixed interest rate on the crypto that they deposit. Therefore users who wanted to hold their crypto for the long term can actually put them in a pool via a smart contract to earn interest on this crypto without having to trade it whereas it would be collecting dust on an CEX. APRs are as high at 100%+ on larger DEXs like [Curve](https://curve.fi/#/ethereum/pools) and higher than 250% for smaller DEXs like [Crescent](https://app.crescent.network/farm). > > Trading fees of DEXs are mostly rather straightforward. Uniswap take a flat 0.3% trading fee, just like [Osmosis](https://osmosis.zone/) on each trade on top of the network transaction fee. Transaction fees can go as low as 0.02% for Curve Finance. These swap fees are provided to the people providing liquidity in the pool as an incentive for putting in their crypto. > > All trades made on a DEX are available as they can be found on the blockchain. Therefore it is possible to base your trading activity on the activities of other people. This also means that you can verify that your assets are where you think they are at all time. Your assets can not be lended to other people without you knowing of it and in most cases without you agreeing to it through the use of a smart contract. > > Compared to a CEX (with the exception of Coinbase) it is possible to own a part of the DEX. Many DEX have their own tokens. For example Curve Finance has [Curve DAO](https://coinmarketcap.com/currencies/curve-dao-token/) and Uniswap has [UNI](https://coinmarketcap.com/currencies/uniswap/). These tokens are used to pay for transaction fees on the DEX, they can be just held on to in the hope of them increasing in value but most important of all these tokens can be used to participate in governance. Everyone can put a proposal for improving a DEX, see the [Curve DAO](https://gov.curve.fi/) as an example for this, up for vote and everyone that owns the token of the DEX can vote (mostly 1 token = 1 vote) to determine how to go forward. Thus one can decide how to go forward to make the DEX even better. Something that is almost entirely impossible with a CEX. > > Privacy on a DEX is much better than on a CEX. On most DEXs no Know Your Customer (KYC) is required, a wallet that can not be linked to the person that is using it is sufficient. > > DEXs can have all assets on their platform that are available on the blockchain itself of made available through wrapped assets by [bridges](https://blog.liquid.com/blockchain-cross-chain-bridge). In theory the number of bridges that can be made between blockchains is infinite thereby the number of assets that can be listed on a DEX is also infinite. In reality though there are only bridges between the major blockchains available at the moment. This still provides plenty to chose from. According to Coinmarketcap there are currently [935 coins](https://www.coingecko.com/en/exchanges/uniswap#:~:text=Currently%2C%20there%20are%20938%20coins,a%2024h%20volume%20of%20%24319%2C357%2C719.14.) available to be traded on Uniswap and [3,223 coins](https://www.coingecko.com/en/exchanges/pancakeswap) on PancakeSwap. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DEX) to find submissions for other topics.

Smiling_Jack_

The only coin on Ethereum is ETH itself. What you see as other coins are tokens, which are smart contracts that generally conform to the ERC-20 standard. DEXes tend to employ AMM pools, which pair two tokens with each other. ETH itself is not a token, so it doesn't sit in these pools (unless lots of extra programming is done). That's where WETH comes in. Since WETH is a token, it can be paired with other tokens in AMM pools.

CointestMod

#Algorand Pro-Arguments Below is a Algorand pro-argument written by a deleted user. > ####**Incredibly fast and high throughput** > > Algorand is arguably the fastest decentralized blockchain in the Top 50 > > The Algorand [v3.9.x update](https://github.com/algorand/go-algorand/pull/4506) in Sep 2022: > > * Increased block size 5x to a max throughput of ~6K TPS > * Decreased block time to ~4s (with deterministic finality). This is one of the few blockchains with finality fast enough to be used for Point of Sales. > > **Fastest swaps**: D13 recently performed a real AMM Swap benchmark where they reached **2881 swaps per second**. This easily [beats out every other L1](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581), including Polygon (by 60x), BSC (15x), Avalanche C-Chain (90x), and even Solana by 10x. Nothing else comes close. > > ####**Very cheap transaction fees** > > Algorand is among the cheapest networks to use. All basic transactions have a 0.001 ALGO fee, which is currently $0.00025. > > Smart contracts have a [700 opscode budget](https://developer.algorand.org/tutorials/understanding-teal-opcode-budget/) before they need to be split into multiple transactions. As such, swaps are equivalent to 4 basic transactions, which is still only $0.001 in transaction fees. > > ####**Energy-efficient** > > Like most PoS blockchains, Algorand has no mining. Even if it increased its participation node count to 4000 (currently 2500), it would be [~1 billion times more energy-efficient than Bitcoin](https://www.algorand.com/resources/blog/sustainable-blockchain-calculating-the-carbon-footprint) per transaction. > > ####**Using Governance for Marketing** > > Algorand heavily markets its Governance program, which is used to vote on how to distribute community rewards and whether DeFi dApps should get a rewards bonus. This boosts the popularity of Algorand as it provides quarterly community marketing. This also encourages Algorand holders to keep holding their ALGO in governance quarter after quarter (until the rewards run out). > > ####**Low staking barriers for participation nodes** > > Unlike Ethereum with its 32-ETH staking requirement, there are no staking requirements for joining as a participation node. In fact, the smallest-staking node only has [2 ALGO](https://metrics.algorand.org/#/decentralization/) (so small it probably has no chance of ever being selected for participation within a lifetime). ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Algorand) to find submissions for other topics.

EchoCollection

What's the difference between an aggregator and an AMM? Does JUP not have liquidity but scalps off the liquidity of radium?

CointestMod

#Algorand Pro-Arguments Below is a Algorand pro-argument written by a deleted user. > ####**Incredibly fast and high throughput** > > Algorand is arguably the fastest decentralized blockchain in the Top 50 > > The Algorand [v3.9.x update](https://github.com/algorand/go-algorand/pull/4506) in Sep 2022: > > * Increased block size 5x to a max throughput of ~6K TPS > * Decreased block time to ~4s (with deterministic finality). This is one of the few blockchains with finality fast enough to be used for Point of Sales. > > **Fastest swaps**: D13 recently performed a real AMM Swap benchmark where they reached **2881 swaps per second**. This easily [beats out every other L1](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581), including Polygon (by 60x), BSC (15x), Avalanche C-Chain (90x), and even Solana by 10x. Nothing else comes close. > > ####**Very cheap transaction fees** > > Algorand is among the cheapest networks to use. All basic transactions have a 0.001 ALGO fee, which is currently $0.00025. > > Smart contracts have a [700 opscode budget](https://developer.algorand.org/tutorials/understanding-teal-opcode-budget/) before they need to be split into multiple transactions. As such, swaps are equivalent to 4 basic transactions, which is still only $0.001 in transaction fees. > > ####**Energy-efficient** > > Like most PoS blockchains, Algorand has no mining. Even if it increased its participation node count to 4000 (currently 2500), it would be [~1 billion times more energy-efficient than Bitcoin](https://www.algorand.com/resources/blog/sustainable-blockchain-calculating-the-carbon-footprint) per transaction. > > ####**Using Governance for Marketing** > > Algorand heavily markets its Governance program, which is used to vote on how to distribute community rewards and whether DeFi dApps should get a rewards bonus. This boosts the popularity of Algorand as it provides quarterly community marketing. This also encourages Algorand holders to keep holding their ALGO in governance quarter after quarter (until the rewards run out). > > ####**Low staking barriers for participation nodes** > > Unlike Ethereum with its 32-ETH staking requirement, there are no staking requirements for joining as a participation node. In fact, the smallest-staking node only has [2 ALGO](https://metrics.algorand.org/#/decentralization/) (so small it probably has no chance of ever being selected for participation within a lifetime). ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Algorand) to find submissions for other topics.

sahilwadekar

u can able to connect all DEX markets with AMM pools to span different decentralized exchanges and provide Best Token Price.

sahilwadekar

u can able to connect all DEX markets with AMM pools to span different decentralized exchanges and provide Best Token Price.

R4ID

> How can I obtain the token without buying it? You cannot > Can I mine it? It doesnt use PoW so no, it has no mining >Can I stake it? There is on chain "stayking" which is a different from of staking that has been live for a few years atm. The XRPL AMM is currently set to launch on march 22nd so, that would give you the option to stake via LP pools on the DEX. >What mechanism is used to issue new tokens? There are no new tokens that can be created. the same code rules(and some others) that limit BTC to 21million are in place on the XRPL which limit it to no more than 100 Billion. Fees are burned so every day there are less and less XRP left in the world. https://github.com/XRPLF/rippled/commit/f0e3383856a8923e55b0f10e7822de9031b7159e They were all created on June 2nd 2012. Anyone could of taken as much or as little as they liked from the genesis wallet. The remnants of the private key for this genesis wallet can still be seen today in the public code base. https://github.com/XRPLF/rippled/blob/ffd453f7dd091b0499fd6ab964880c8268deead4/src/ripple/app/misc/NetworkOPs.cpp#L852-L854 Again Im asking you to prove its centrally controlled. So far youve asked a bunch of irrelevant questions, curious if you can prove its centrally controlled or not?

crashbdx

We do plan to have liquidity pools on different AMM on Waves, BNB and Polygon at token launch, which is planned around april, we have not decided exactly yet where for each network but are open to suggestions from the community.

Fornicatinzebra

There are many different pairs that could be added to the ledger. Imagine someone makes two brand new coins at the same instant right now. Until they get added to the ledger, there is 0 AMM for that pair. Once a pool is created for the pair there is 1.

13toros13

thanks! do you think XRP/Ripple AMM and Binance AMM are the same or is there some code differences that make it necessary to really find the different outcomes?

13toros13

I get the meaning of it now. Im just saying that using that phrase is poor writing. If you want to get further into the grammar and meaning of it, I might point out that saying: "For any given pair of assets, there can be up to one AMM in the ledger." indicates a form of presence or being for zero on the ledger. "There can be up to" means there can be zero on the ledger. Zero is a null set and an absence of being; therefore there is no need to point out that it is possible. Would you say "On the table the lunch available can be up to one" no. That would mean that you are saying that zero lunch is available on the table, which is a contradiction in one sense and stupid thing to say on the other hand, because the speaker has most likely already asked where the hell lunch is, and already knows there is a concept whereby none is on the table. Thats why they asked.

asdafari12

It rather seems like you are new to defi in crypto. The text and how the AMM works is nothing special. An informed user would get what they mean, they aren't writing to novices that need an "explain-like-I-am-five-explanation".

Sir_Sushi

It's clearly said in the next sentence that you can create the AMM if it does not exist yet. So at the beginning, there is 0 AMM for a pair until someone creates it and after that there is 1. If it already exists, you can't create another one so it can't exist 2 AMM for a pair. That's the definition of "up to 1"

systembreaker

It's literally describing what an AMM is. It's not describing how it actually works, though.

13toros13

look it still is a clumsy bit of writing. Especially when the writer hasnt clarified well enough what the AMM is and what isnt. Pool and AMM are being used interchangeably. Good night

pseudoHappyHippy

You are leaving out the first half of your own post's quote: "**For any given pair of assets,** there can be up to one AMM in the ledger." When you include the first half of the sentence, yes, it means exactly what I said. For any one asset pair, there can be either 0 or 1 AMM on the DEX.

pseudoHappyHippy

The quote in your post is "For any given pair of assets, there can be up to one AMM in the ledger." So, one AMM per asset *pair*, not per asset. For example, if there is already an AMM for the XRP/XLM pair on their DEX, then there cannot be another one for that pair. However, if nobody has launched an AMM contract for XRP/XLM pair yet, then that pair won't be tradeable on the DEX unless someone does. Hence 0 or 1, or "up to one".

13toros13

"there can only be one AMM per particular asset"

13toros13

By the way, for the record, this is what was written "there can be up to one AMM in the ledger" Which is nonsensical. Has nothing to do with what you just said, and would never be used by someone intending to mean what you described. They would describe it as you have, not as they did. That my only point. Institutional writing should be accessible to more than a few people.

pseudoHappyHippy

No, it is saying for any any given trading pair you can come up with, there is either one pool for that pair on their DEX, or none. There can't be two. There could well be zero. If nobody has decided to launch an AMM contract for some particular pair, then it won't exist, and you won't be able to trade that pair. It's not like a pool for every possible pair automatically exists; people have to deploy those pool contracts and then others need to add liqudity to them. If that doesn't happen, then that pool doesn't exist. Hence 0 or 1 AMMs per asset pair. Honestly, just about everything in your post seems to be a reading comprehension issue on your part.

13toros13

gotcha. blinkOneEightyBewb actually answered it - the writer evidently was using some strange math jargon (again, exactly my point) to say that a users can create an AMM (0) or use a previously existing one (1). again, I rest my case

13toros13

If philosophical questions are to be avoided by the reader, then the responsible writer should not elicit them. As someone else referred to, the "0 or 1" appears to be mathematics jargon. Part of the problem. Unnecessarily weird and therefore confusing. The text already had made the point about creating a new AMM....

blinkOneEightyBewb

Those are philosophical questions that do not require an answer when defining what an AMM is.

13toros13

how would a currency or value or token exchange function without an AMM? The paragraph is explaining an AMM, and then saying that an AMM actually isnt necessary in an AMM exchange pool? how would that work

13toros13

Please explain how a pool swap scenario like the one they appear to be describing would work without an AMM between the two assets? 0 or 1. How would having 0 even work? Jeez man. We are now dealing not with reading comprehension but comprehension itself

Dramatic-Jackfruit-4

1) Why does having one pool with two tokens or two pools matter? You swap one token for another token anyway. Your definition of liquidities are confusing to me, because they seem to mean the same thing. For uniswap, arbitrager will trade so the price in AMM is equal to market price. 2) poor choice of words but you understand what they mean

smellybarbiefeet

Erm… as an example you could have just googled AMM there’s tons of articles. If you’re having issues understanding stuff… I hate to say this, but it seems like a skill issue in reading comprehension.

systembreaker

Tbh the post was tldr but maybe it's more you not them. For example this sentence from your example makes perfect sense > Automated Market Makers (AMMs) are smart contracts that provide liquidity in the XRP Ledger's decentralized exchange. Each AMM holds a pool of two assets and enables users to swap between them at an exchange rate set by a formula.

CointestMod

#Algorand Pro-Arguments Below is a Algorand pro-argument written by a deleted user. > ####**Incredibly fast and high throughput** > > Algorand is arguably the fastest decentralized blockchain in the Top 50 > > The Algorand [v3.9.x update](https://github.com/algorand/go-algorand/pull/4506) in Sep 2022: > > * Increased block size 5x to a max throughput of ~6K TPS > * Decreased block time to ~4s (with deterministic finality). This is one of the few blockchains with finality fast enough to be used for Point of Sales. > > **Fastest swaps**: D13 recently performed a real AMM Swap benchmark where they reached **2881 swaps per second**. This easily [beats out every other L1](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581), including Polygon (by 60x), BSC (15x), Avalanche C-Chain (90x), and even Solana by 10x. Nothing else comes close. > > ####**Very cheap transaction fees** > > Algorand is among the cheapest networks to use. All basic transactions have a 0.001 ALGO fee, which is currently $0.00025. > > Smart contracts have a [700 opscode budget](https://developer.algorand.org/tutorials/understanding-teal-opcode-budget/) before they need to be split into multiple transactions. As such, swaps are equivalent to 4 basic transactions, which is still only $0.001 in transaction fees. > > ####**Energy-efficient** > > Like most PoS blockchains, Algorand has no mining. Even if it increased its participation node count to 4000 (currently 2500), it would be [~1 billion times more energy-efficient than Bitcoin](https://www.algorand.com/resources/blog/sustainable-blockchain-calculating-the-carbon-footprint) per transaction. > > ####**Using Governance for Marketing** > > Algorand heavily markets its Governance program, which is used to vote on how to distribute community rewards and whether DeFi dApps should get a rewards bonus. This boosts the popularity of Algorand as it provides quarterly community marketing. This also encourages Algorand holders to keep holding their ALGO in governance quarter after quarter (until the rewards run out). > > ####**Low staking barriers for participation nodes** > > Unlike Ethereum with its 32-ETH staking requirement, there are no staking requirements for joining as a participation node. In fact, the smallest-staking node only has [2 ALGO](https://metrics.algorand.org/#/decentralization/) (so small it probably has no chance of ever being selected for participation within a lifetime). ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Algorand) to find submissions for other topics.

coinfeeds-bot

tldr; GMX V2, launched six months ago, has integrated several updates including Chainlink data streams, adaptive funding rates, and more for a faster trading experience. Future plans involve incremental changes like a leaderboard and contract improvements. A proposed bridging protocol could enhance GMX's bridging needs, supporting cross-chain governance and liquidity. Additionally, the PvP AMM model, enabling markets without liquidity requirements, is under consideration. GMX aims to remain on Arbitrum and Avalanche, exploring new protocol types without launching a new chain. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

gr8ful4

You came to crypto for making more fiat money and without understanding the first principle. Do not trust third parties hence always control your own keys. There are plenty of better however still more inconvenient solutions that are preferable over using KYC/CEX: Exchange method | Exchanges| Trust level ---|---|---- DEX | bisq, Haveno | ✅ escrow P2P | LocalMonero. AgoraDesk, Robosats, Zapit, Peach Bitcoin| ✅ escrow Atomic swaps | Samourai Wallet, UnstoppableSwap.net, AtomicMonero, BasciSwapDEX | ✅ trustless AMM (automatic market makers) | SeraiDEX, Maya, Thorchain | low for users / medium for liquidity providers (hacks) Electricity | XMRrig, Monero GUI, Grupax | ✅ trustless Earning | any products or services | low - ⚠️ high (scams)

DeQQster

>you decided to go with a random no-name dapp with 90% of your crypto holdings ... I mean, why? It was not a random no name option, they created the first AMM which Uniswap later copied and improved. It was considered one of the safest places for passive income and the go to place to stake LINK. But things went downhill with Bancor v3. So it wasn't as obvious as it is now, crypto OGs who never got scammed in 7 years of crypto got caught by Bancor.

CyberPunkMetalHead

Sure, here's a blurb I wrote for the description: ​ Daniel Rosen started Bitcoin mining while keeping a garage gym warm during the cold winter months. By setting up a single ASIC miner, Daniel not only managed to maintain a cozy temperature of 55 degrees Fahrenheit but also turned a neat profit every month. There are just so many untapped use cases to be explored when it comes to Bitcoin mining and it's exciting to see people using ASICS to warm up garages, greenhouses and other buildings. Bhutan's Secret Crypto Operation While personal stories of innovative mining solutions are pretty cool to listen to, entire nations are making strategic moves into the mining scene. Bhutan, a small Himalayan kingdom known for measuring Gross National Happiness, has been quietly mining Bitcoin since 2019. This move isn't just about adding to the national coffers; it's a strategic decision to leverage Bhutan's renewable energy resources, demonstrating how countries can adopt crypto mining within their economic and environmental frameworks. Luxor and Bitcoin Mining Luxor are Bitcoin and Asic mining specialists that offer a suite of specialized services, including a mining pool that is responsible for about 3.5% of all mining hashing power. Luxor's approach includes a focus on derivatives and financial products tailored for the crypto mining sector with the purpose of enabling miners to hedge their risk. For instance miners are able to lock in a certain hashrate and get paid 6 months in advance for that compute. Luxor operates as an AMM or automated market-maker allowing users to buy and sell hash rate. The case for Ordinals When ordinals came out, I called them a fad, and a nuisance on the Bitcoin blokchain. I mean, with 7TPS why would you want to add more strain on this system? Daniel managed to change my mind on it. As Block rewards decrease with every Bitcoin halving, transaction rewards become more important for rewarding miners for their work. On a 6.25 BTC block reward, the current transaction fee reward sits at an average of 0.3-0.4 BTC/ block. Post April, this will account for about 10% of the total reward. During the ordinals boom, we saw this increase by 10x temporarily making up nearly half of the block reward. Miners being incentivized to secure the network is a good thing, so ordinals are a good thing too.

CointestMod

#Algorand Pro-Arguments Below is a Algorand pro-argument written by a deleted user. > ####**Incredibly fast and high throughput** > > Algorand is arguably the fastest decentralized blockchain in the Top 50 > > The Algorand [v3.9.x update](https://github.com/algorand/go-algorand/pull/4506) in Sep 2022: > > * Increased block size 5x to a max throughput of ~6K TPS > * Decreased block time to ~4s (with deterministic finality). This is one of the few blockchains with finality fast enough to be used for Point of Sales. > > **Fastest swaps**: D13 recently performed a real AMM Swap benchmark where they reached **2881 swaps per second**. This easily [beats out every other L1](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581), including Polygon (by 60x), BSC (15x), Avalanche C-Chain (90x), and even Solana by 10x. Nothing else comes close. > > ####**Very cheap transaction fees** > > Algorand is among the cheapest networks to use. All basic transactions have a 0.001 ALGO fee, which is currently $0.00025. > > Smart contracts have a [700 opscode budget](https://developer.algorand.org/tutorials/understanding-teal-opcode-budget/) before they need to be split into multiple transactions. As such, swaps are equivalent to 4 basic transactions, which is still only $0.001 in transaction fees. > > ####**Energy-efficient** > > Like most PoS blockchains, Algorand has no mining. Even if it increased its participation node count to 4000 (currently 2500), it would be [~1 billion times more energy-efficient than Bitcoin](https://www.algorand.com/resources/blog/sustainable-blockchain-calculating-the-carbon-footprint) per transaction. > > ####**Using Governance for Marketing** > > Algorand heavily markets its Governance program, which is used to vote on how to distribute community rewards and whether DeFi dApps should get a rewards bonus. This boosts the popularity of Algorand as it provides quarterly community marketing. This also encourages Algorand holders to keep holding their ALGO in governance quarter after quarter (until the rewards run out). > > ####**Low staking barriers for participation nodes** > > Unlike Ethereum with its 32-ETH staking requirement, there are no staking requirements for joining as a participation node. In fact, the smallest-staking node only has [2 ALGO](https://metrics.algorand.org/#/decentralization/) (so small it probably has no chance of ever being selected for participation within a lifetime). ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Algorand) to find submissions for other topics.

CointestMod

#Algorand Pro-Arguments Below is a Algorand pro-argument written by a deleted user. > ####**Incredibly fast and high throughput** > > Algorand is arguably the fastest decentralized blockchain in the Top 50 > > The Algorand [v3.9.x update](https://github.com/algorand/go-algorand/pull/4506) in Sep 2022: > > * Increased block size 5x to a max throughput of ~6K TPS > * Decreased block time to ~4s (with deterministic finality). This is one of the few blockchains with finality fast enough to be used for Point of Sales. > > **Fastest swaps**: D13 recently performed a real AMM Swap benchmark where they reached **2881 swaps per second**. This easily [beats out every other L1](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581), including Polygon (by 60x), BSC (15x), Avalanche C-Chain (90x), and even Solana by 10x. Nothing else comes close. > > ####**Very cheap transaction fees** > > Algorand is among the cheapest networks to use. All basic transactions have a 0.001 ALGO fee, which is currently $0.00025. > > Smart contracts have a [700 opscode budget](https://developer.algorand.org/tutorials/understanding-teal-opcode-budget/) before they need to be split into multiple transactions. As such, swaps are equivalent to 4 basic transactions, which is still only $0.001 in transaction fees. > > ####**Energy-efficient** > > Like most PoS blockchains, Algorand has no mining. Even if it increased its participation node count to 4000 (currently 2500), it would be [~1 billion times more energy-efficient than Bitcoin](https://www.algorand.com/resources/blog/sustainable-blockchain-calculating-the-carbon-footprint) per transaction. > > ####**Using Governance for Marketing** > > Algorand heavily markets its Governance program, which is used to vote on how to distribute community rewards and whether DeFi dApps should get a rewards bonus. This boosts the popularity of Algorand as it provides quarterly community marketing. This also encourages Algorand holders to keep holding their ALGO in governance quarter after quarter (until the rewards run out). > > ####**Low staking barriers for participation nodes** > > Unlike Ethereum with its 32-ETH staking requirement, there are no staking requirements for joining as a participation node. In fact, the smallest-staking node only has [2 ALGO](https://metrics.algorand.org/#/decentralization/) (so small it probably has no chance of ever being selected for participation within a lifetime). ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Algorand) to find submissions for other topics.

BanMeForNothing

Ya just super fast and cheap transactions, staking, liquid staking, tokens, spot/leverage trading on AMM or orderbooks, borrowing, lending, NFTs, stable coins. Can do basically anything a bank can do. So ya basically nothing is on Solana.

Elegant_Bad4995

I painfully waited from 26ish$ to the actual buy of an average of 4.5$ per DOT. I didn't FOMO this time. Staked it until i reached 1k DOT, after that I put the rewards for buying HydraDX. So far the best decision I ever made in a bear market. The idea behind it is what I've learned in the past (since 2017), you have to bet on the narrative and after that invest in the DEX of that narrative. That's why I'm in DOT (I'm betting on the next narrative to be scalability and interoperability aka internet of blockcahin) and HydraDX (biggest exchange on DOT with innovative AMM). More or less what happend to BNB and CAKE if you want to take a reference from last bullrun.

donjoe0

Strange infographic, AFAIK a liquidity pool primarily provides services to buyers and sellers, not lenders and borrowers, but OK. BTW, for those who want to wet their toes with "liquidity farming" without getting into the complexities of DeFi, DEXes and smart contracts, you can do it on CoinEx by just depositing or buying equal-value quantities of the 2 coins you want to put in the liquidity pool and clicking Add Liquidity on that trading pair's Exchange page, on the AMM tab. Then you just let the AMM do its thing and wait for your daily transaction fee earnings to come rolling in. It's a bit like having a mediocre - not great, not terrible - trading bot that sells more and more of the "active" coin when its price is rising and buys more and more of it when its price is dropping, plus you earn a chunk of the trading fees being paid by those who are actively trading that coin against the stablecoin or BTC you've got it paired with. Say you're keeping some SOL & USDT in a liquidity pool: \* Anytime there's a drop in SOL price vs. your entry price, your total value in the pool diminishes, but only half as much as it would've if you had used 100% of those funds to hodl SOL (I guess this could be called an "impermanent win", dunno why nobody talks about it in any liquidity pool guides). \* Anytime it rockets, again your total value in the pool will rise only by half as much as it would've if you had gone for the hodl (this is the oh-so-scary "impermanent loss", but the way it works is not much different from simply splitting your funds 50-50 between the active coin and USDT and just hodling). \* But on top of these you always get extra value added to your chunk of liquidity (both extra SOL and extra USDT) from other people's transaction fees as they keep buying an selling SOL for USDT. And these earnings can get pretty sweet, like 3x-10x the APR you would get from the usual staking offers from Top100 chains, if the market is agitated and there's a lot of excited trading going on (like now) and if you choose your coin pairs well (like... not if you're going only for memecoins that will just crash and never recover after some initial excitement). Overall, after some initial studying to carefully choose not-the-worst coins, you can treat it as a safe-ish low-effort way to make sure you're constantly earning without being under the constant stress of active trading, and you just accept that you will get only a little over half of the earnings an active trader would've got out of the same coins. And of course if you think some ATH has been reached, you can always take out your chunk of the AMM pool and sell all of the "active" coin at the best price of the cycle (locking time is only the fist 24h after you add funds to a pool).

CryptoNerdSmacker

This along with the AMM change coming up in a few weeks would be key pieces to that puzzle. The exchange market is a bit open for the US. Ripple’s been thoroughly examined and then some given the recent litigation. Maybe an exchange is the way for them to go, an exchange where they can offer clients lightning fast transactions with almost no fee. They could then bridge it to all kinds of things like DEX, Central Banks, FOREX, etc. You know they’ve always been on the horn about being one of the main players in moving value at the speed of information but I dunno why I never considered them having an official exchange. Interesting, they are for sure poised to go that route if they wanted.

Smiling_Jack_

Nice try. DeFi volume is far more than folks locking away their funds in an AMM. You're barking up the wrong tree son.

vattenj

very little people have it, almost an AMM pool consists of swiss bankers

CointestMod

#DEX Pro-Arguments Below is a DEX pro-argument written by Shippior. > A Decentralized Exchange, often abbreviated to DEX, is an exchange that does not belong to a central entity and all transactions happen on a blockchain. The three largest DEXs by [Total Value Locked](https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter) (TVL) are [Curve Finance](https://curve.fi/#/ethereum/swap), [Uniswap](https://uniswap.org/) and [PancakeSwap](https://pancakeswap.finance/). For a full list of DEXs see this [dashboard](https://defillama.com/protocols/Dexes). > > The largest difference between a CEX and a DEX is the way that liquidity is provided. Most CEXs use an [order book](https://learn.bybit.com/trading/order-book-explained-for-beginners/_ style ) for transactions. Most DEXs employ [Auto Mated Market Making](https://blog.0x.org/market-making-in-defi/) (AMM). These type of transactions are essential for operating an exchange with low liquidity. The supply and demand are matched by a protocol to prevent orders from not being fulfilled for a long time as there are generally less transaction offers available when there is lower liquidity. > > AMM works by users "lending" their crypto as collateral for others to trade. This is done by depositing tokens in a [liquidity pool](https://www.moonpay.com/learn/defi/what-are-liquidity-pools). Users are often provided incentive by the protocol to deposit their tokens by receiving a fixed interest rate on the crypto that they deposit. Therefore users who wanted to hold their crypto for the long term can actually put them in a pool via a smart contract to earn interest on this crypto without having to trade it whereas it would be collecting dust on an CEX. APRs are as high at 100%+ on larger DEXs like [Curve](https://curve.fi/#/ethereum/pools) and higher than 250% for smaller DEXs like [Crescent](https://app.crescent.network/farm). > > Trading fees of DEXs are mostly rather straightforward. Uniswap take a flat 0.3% trading fee, just like [Osmosis](https://osmosis.zone/) on each trade on top of the network transaction fee. Transaction fees can go as low as 0.02% for Curve Finance. These swap fees are provided to the people providing liquidity in the pool as an incentive for putting in their crypto. > > All trades made on a DEX are available as they can be found on the blockchain. Therefore it is possible to base your trading activity on the activities of other people. This also means that you can verify that your assets are where you think they are at all time. Your assets can not be lended to other people without you knowing of it and in most cases without you agreeing to it through the use of a smart contract. > > Compared to a CEX (with the exception of Coinbase) it is possible to own a part of the DEX. Many DEX have their own tokens. For example Curve Finance has [Curve DAO](https://coinmarketcap.com/currencies/curve-dao-token/) and Uniswap has [UNI](https://coinmarketcap.com/currencies/uniswap/). These tokens are used to pay for transaction fees on the DEX, they can be just held on to in the hope of them increasing in value but most important of all these tokens can be used to participate in governance. Everyone can put a proposal for improving a DEX, see the [Curve DAO](https://gov.curve.fi/) as an example for this, up for vote and everyone that owns the token of the DEX can vote (mostly 1 token = 1 vote) to determine how to go forward. Thus one can decide how to go forward to make the DEX even better. Something that is almost entirely impossible with a CEX. > > Privacy on a DEX is much better than on a CEX. On most DEXs no Know Your Customer (KYC) is required, a wallet that can not be linked to the person that is using it is sufficient. > > DEXs can have all assets on their platform that are available on the blockchain itself of made available through wrapped assets by [bridges](https://blog.liquid.com/blockchain-cross-chain-bridge). In theory the number of bridges that can be made between blockchains is infinite thereby the number of assets that can be listed on a DEX is also infinite. In reality though there are only bridges between the major blockchains available at the moment. This still provides plenty to chose from. According to Coinmarketcap there are currently [935 coins](https://www.coingecko.com/en/exchanges/uniswap#:~:text=Currently%2C%20there%20are%20938%20coins,a%2024h%20volume%20of%20%24319%2C357%2C719.14.) available to be traded on Uniswap and [3,223 coins](https://www.coingecko.com/en/exchanges/pancakeswap) on PancakeSwap. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DEX) to find submissions for other topics.

CointestMod

#DEX Pro-Arguments Below is a DEX pro-argument written by Shippior. > A Decentralized Exchange, often abbreviated to DEX, is an exchange that does not belong to a central entity and all transactions happen on a blockchain. The three largest DEXs by [Total Value Locked](https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter) (TVL) are [Curve Finance](https://curve.fi/#/ethereum/swap), [Uniswap](https://uniswap.org/) and [PancakeSwap](https://pancakeswap.finance/). For a full list of DEXs see this [dashboard](https://defillama.com/protocols/Dexes). > > The largest difference between a CEX and a DEX is the way that liquidity is provided. Most CEXs use an [order book](https://learn.bybit.com/trading/order-book-explained-for-beginners/_ style ) for transactions. Most DEXs employ [Auto Mated Market Making](https://blog.0x.org/market-making-in-defi/) (AMM). These type of transactions are essential for operating an exchange with low liquidity. The supply and demand are matched by a protocol to prevent orders from not being fulfilled for a long time as there are generally less transaction offers available when there is lower liquidity. > > AMM works by users "lending" their crypto as collateral for others to trade. This is done by depositing tokens in a [liquidity pool](https://www.moonpay.com/learn/defi/what-are-liquidity-pools). Users are often provided incentive by the protocol to deposit their tokens by receiving a fixed interest rate on the crypto that they deposit. Therefore users who wanted to hold their crypto for the long term can actually put them in a pool via a smart contract to earn interest on this crypto without having to trade it whereas it would be collecting dust on an CEX. APRs are as high at 100%+ on larger DEXs like [Curve](https://curve.fi/#/ethereum/pools) and higher than 250% for smaller DEXs like [Crescent](https://app.crescent.network/farm). > > Trading fees of DEXs are mostly rather straightforward. Uniswap take a flat 0.3% trading fee, just like [Osmosis](https://osmosis.zone/) on each trade on top of the network transaction fee. Transaction fees can go as low as 0.02% for Curve Finance. These swap fees are provided to the people providing liquidity in the pool as an incentive for putting in their crypto. > > All trades made on a DEX are available as they can be found on the blockchain. Therefore it is possible to base your trading activity on the activities of other people. This also means that you can verify that your assets are where you think they are at all time. Your assets can not be lended to other people without you knowing of it and in most cases without you agreeing to it through the use of a smart contract. > > Compared to a CEX (with the exception of Coinbase) it is possible to own a part of the DEX. Many DEX have their own tokens. For example Curve Finance has [Curve DAO](https://coinmarketcap.com/currencies/curve-dao-token/) and Uniswap has [UNI](https://coinmarketcap.com/currencies/uniswap/). These tokens are used to pay for transaction fees on the DEX, they can be just held on to in the hope of them increasing in value but most important of all these tokens can be used to participate in governance. Everyone can put a proposal for improving a DEX, see the [Curve DAO](https://gov.curve.fi/) as an example for this, up for vote and everyone that owns the token of the DEX can vote (mostly 1 token = 1 vote) to determine how to go forward. Thus one can decide how to go forward to make the DEX even better. Something that is almost entirely impossible with a CEX. > > Privacy on a DEX is much better than on a CEX. On most DEXs no Know Your Customer (KYC) is required, a wallet that can not be linked to the person that is using it is sufficient. > > DEXs can have all assets on their platform that are available on the blockchain itself of made available through wrapped assets by [bridges](https://blog.liquid.com/blockchain-cross-chain-bridge). In theory the number of bridges that can be made between blockchains is infinite thereby the number of assets that can be listed on a DEX is also infinite. In reality though there are only bridges between the major blockchains available at the moment. This still provides plenty to chose from. According to Coinmarketcap there are currently [935 coins](https://www.coingecko.com/en/exchanges/uniswap#:~:text=Currently%2C%20there%20are%20938%20coins,a%2024h%20volume%20of%20%24319%2C357%2C719.14.) available to be traded on Uniswap and [3,223 coins](https://www.coingecko.com/en/exchanges/pancakeswap) on PancakeSwap. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DEX) to find submissions for other topics.

Normann1000

Depends what kind of LP you are. EVM and similar "defi" you probably only lose money but market making on atomic swap dexs or providing liquidity to Verus AMM is profitable.

Dylan7675

Watch out, the Algo haters will murder you. Honestly the Algo AMM DEXs are the best I've used.

gr8ful4

CEX are not your friend. Once you understand that you have plenty of options. * Use a P2P maret like LocalMonero/AgoraDesk * Use a DEX like bisq or Haveno * Or use trustless atomic swaps * Or use AMM's like Thorchain or SeraiDEX

chintokkong

No idea yet. But it's probably deliberately timed to thwart the XRP ledger upcoming launch of AMM in about a week's time. Even if it's difficult to enforce, perhaps the intention is to scare off potential liquidity providers away.

Smiling_Jack_

First of all, know that in DeFi each smart contract required for some given strat comes with risk. Minting an LSD? There's a chance that smart contract could be exploited. Bridging that LSD to another chain? There's a chance that smart contract could be exploited. Using that LSD as collateral for a loan? There's a chance that smart contract could be exploited. Depositing that loaned crypto into am AMM? There's a chance that smart contract could be exploited. All it takes is just one of these to fail and you've lost it all. Back to your question, there's a difference between redeeming an LSD from the smart contract you've minted it from (which should be 1:1 plus the accrued staking yield) and what the trading price for that LSD is going for on the open market.

Smiling_Jack_

The same thing applies to Decentralized exchanges, minus the exchanges themselves selling among each other. In fact you can see price differences between two AMM pools of the same asset pair on the same DEX, because each pool is its own little market.

lj26ft

99.8% of people in here are cluelessness personified. The AMM just passed validator vote

ashtegro

Most of the current DEXs are swap solutions based on an AMM model where the price discovery happens through a constant product formula. Out in the real trading world which is magnitudes bigger than the current DEX market, price discovery happens through an orderbook which has a list orders with the price people want to buy/sell at. Orderbooks are a lot more dynamic as market makers can quote continuously and respond to the price movement. However, a price change in an AMM can only happen if someone adds/pulls liquidity or performs trade to change the dual token composition. The only reason you see DEX prices similar to CEX prices is because of Arb bots who are running an arb strat between a centralized exchange and the liquidity pool. Additionally, you have JaredFromSubway and other leet guys who will consistently make profit off your trades by frontrunning your trades so you are always worse off than what you intended. With Tegro, we have a transparent orderbook system which operates on FiFo (first in, first out) model so you compete with traders on a trading level and do not have to worry about the complexities or the inner workings of the blockchain. ​ tldr: open orderbook, competitive rates (gasless quotes), no getting rekt by mev bots (because of FIFO principle)

ashtegro

Tegro is an orderbook based exchange. Majority of the decentralized exchanges out there rely on an AMM model where users pool in liquidity and the price is discovered through a constant product formula. Out in the real world, swap based solutions are used by lite"/"casual" users whereas real traders prefer the ability to seamlessly quote the price they want to buy/sell at. The current swap infrastructure is rife with grey/bad actors. On one side, you have these arbitrage bots who keep the pool price consistent by running an arb strat against the pool and their CEX account. On the other side, you have Jared and other leet guys who are looking to frontrun your trade so you always pay the worst rate and get rekt. ​ Traders just want to trade without worrying about the complexity of blockchain. That's why we focused on developing the tried and tested orderbook model in the DeFi sense. With us, you deal with a transparent matching engine that follows the FIFO (first in, first out) principle, no jumping the queue to get your orders executed. This ensure fairness in the ecosystem by having a level playing field, so you compete with others users at a trade level and not at a blockchain skill level. ​ tldr: better rates because market makers can quote offchain without gas, limit orders (no paying extra), no getting rekt by mev or subway guys

BuddhaSource

GEN1 — Liquidity for Retail Traders on Chain: Retail traders now have enhanced liquidity on-chain. GEN2 — High-Frequency Traders:These traders, who account for 80-90% of exchange volume and operate 24/7, expect chains to rival platforms like Binance, with the added benefit of keeping funds in personal wallets. Note: High-Frequency Traders do 80-90% of the volume on exchanges and are active 24x7. **AMM Exchanges (Gen1):**AMM exchanges made a significant breakthrough by bringing liquidity on-chain for trading, which was a crucial development. However, they are primarily suited for quick swaps with notable price slippage, not for high-frequency traders who still struggle to adapt to this model. **Gen2 Spot DEX:** \- The next-generation DEX aims to extend the market from retail swaps to more serious traders. \- High-frequency traders need efficient markets; every millisecond of latency matters. Some even relocate their bots closer to exchange servers to reduce latency. \- Gasless bids and asks: This feature, unachievable with AMM due to its inherent slowness, is a hallmark of GEN2 DEX, promising tighter spreads. \- Significantly cheaper, with a potential 30-60% reduction in gas fees. The higher the trading volume, the lower the fees, thanks to bundling. \- Operates similarly to centralized exchanges like Binance or Coinbase Pro, with user-friendly APIs. ​ Bottom Line:Expect DEX volumes to multiply as more serious traders transition onto the chain.

CointestMod

#DEX Pro-Arguments Below is a DEX pro-argument written by Shippior. > A Decentralized Exchange, often abbreviated to DEX, is an exchange that does not belong to a central entity and all transactions happen on a blockchain. The three largest DEXs by [Total Value Locked](https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter) (TVL) are [Curve Finance](https://curve.fi/#/ethereum/swap), [Uniswap](https://uniswap.org/) and [PancakeSwap](https://pancakeswap.finance/). For a full list of DEXs see this [dashboard](https://defillama.com/protocols/Dexes). > > The largest difference between a CEX and a DEX is the way that liquidity is provided. Most CEXs use an [order book](https://learn.bybit.com/trading/order-book-explained-for-beginners/_ style ) for transactions. Most DEXs employ [Auto Mated Market Making](https://blog.0x.org/market-making-in-defi/) (AMM). These type of transactions are essential for operating an exchange with low liquidity. The supply and demand are matched by a protocol to prevent orders from not being fulfilled for a long time as there are generally less transaction offers available when there is lower liquidity. > > AMM works by users "lending" their crypto as collateral for others to trade. This is done by depositing tokens in a [liquidity pool](https://www.moonpay.com/learn/defi/what-are-liquidity-pools). Users are often provided incentive by the protocol to deposit their tokens by receiving a fixed interest rate on the crypto that they deposit. Therefore users who wanted to hold their crypto for the long term can actually put them in a pool via a smart contract to earn interest on this crypto without having to trade it whereas it would be collecting dust on an CEX. APRs are as high at 100%+ on larger DEXs like [Curve](https://curve.fi/#/ethereum/pools) and higher than 250% for smaller DEXs like [Crescent](https://app.crescent.network/farm). > > Trading fees of DEXs are mostly rather straightforward. Uniswap take a flat 0.3% trading fee, just like [Osmosis](https://osmosis.zone/) on each trade on top of the network transaction fee. Transaction fees can go as low as 0.02% for Curve Finance. These swap fees are provided to the people providing liquidity in the pool as an incentive for putting in their crypto. > > All trades made on a DEX are available as they can be found on the blockchain. Therefore it is possible to base your trading activity on the activities of other people. This also means that you can verify that your assets are where you think they are at all time. Your assets can not be lended to other people without you knowing of it and in most cases without you agreeing to it through the use of a smart contract. > > Compared to a CEX (with the exception of Coinbase) it is possible to own a part of the DEX. Many DEX have their own tokens. For example Curve Finance has [Curve DAO](https://coinmarketcap.com/currencies/curve-dao-token/) and Uniswap has [UNI](https://coinmarketcap.com/currencies/uniswap/). These tokens are used to pay for transaction fees on the DEX, they can be just held on to in the hope of them increasing in value but most important of all these tokens can be used to participate in governance. Everyone can put a proposal for improving a DEX, see the [Curve DAO](https://gov.curve.fi/) as an example for this, up for vote and everyone that owns the token of the DEX can vote (mostly 1 token = 1 vote) to determine how to go forward. Thus one can decide how to go forward to make the DEX even better. Something that is almost entirely impossible with a CEX. > > Privacy on a DEX is much better than on a CEX. On most DEXs no Know Your Customer (KYC) is required, a wallet that can not be linked to the person that is using it is sufficient. > > DEXs can have all assets on their platform that are available on the blockchain itself of made available through wrapped assets by [bridges](https://blog.liquid.com/blockchain-cross-chain-bridge). In theory the number of bridges that can be made between blockchains is infinite thereby the number of assets that can be listed on a DEX is also infinite. In reality though there are only bridges between the major blockchains available at the moment. This still provides plenty to chose from. According to Coinmarketcap there are currently [935 coins](https://www.coingecko.com/en/exchanges/uniswap#:~:text=Currently%2C%20there%20are%20938%20coins,a%2024h%20volume%20of%20%24319%2C357%2C719.14.) available to be traded on Uniswap and [3,223 coins](https://www.coingecko.com/en/exchanges/pancakeswap) on PancakeSwap. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DEX) to find submissions for other topics.

CointestMod

#DEX Pro-Arguments Below is a DEX pro-argument written by Shippior. > A Decentralized Exchange, often abbreviated to DEX, is an exchange that does not belong to a central entity and all transactions happen on a blockchain. The three largest DEXs by [Total Value Locked](https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter) (TVL) are [Curve Finance](https://curve.fi/#/ethereum/swap), [Uniswap](https://uniswap.org/) and [PancakeSwap](https://pancakeswap.finance/). For a full list of DEXs see this [dashboard](https://defillama.com/protocols/Dexes). > > The largest difference between a CEX and a DEX is the way that liquidity is provided. Most CEXs use an [order book](https://learn.bybit.com/trading/order-book-explained-for-beginners/_ style ) for transactions. Most DEXs employ [Auto Mated Market Making](https://blog.0x.org/market-making-in-defi/) (AMM). These type of transactions are essential for operating an exchange with low liquidity. The supply and demand are matched by a protocol to prevent orders from not being fulfilled for a long time as there are generally less transaction offers available when there is lower liquidity. > > AMM works by users "lending" their crypto as collateral for others to trade. This is done by depositing tokens in a [liquidity pool](https://www.moonpay.com/learn/defi/what-are-liquidity-pools). Users are often provided incentive by the protocol to deposit their tokens by receiving a fixed interest rate on the crypto that they deposit. Therefore users who wanted to hold their crypto for the long term can actually put them in a pool via a smart contract to earn interest on this crypto without having to trade it whereas it would be collecting dust on an CEX. APRs are as high at 100%+ on larger DEXs like [Curve](https://curve.fi/#/ethereum/pools) and higher than 250% for smaller DEXs like [Crescent](https://app.crescent.network/farm). > > Trading fees of DEXs are mostly rather straightforward. Uniswap take a flat 0.3% trading fee, just like [Osmosis](https://osmosis.zone/) on each trade on top of the network transaction fee. Transaction fees can go as low as 0.02% for Curve Finance. These swap fees are provided to the people providing liquidity in the pool as an incentive for putting in their crypto. > > All trades made on a DEX are available as they can be found on the blockchain. Therefore it is possible to base your trading activity on the activities of other people. This also means that you can verify that your assets are where you think they are at all time. Your assets can not be lended to other people without you knowing of it and in most cases without you agreeing to it through the use of a smart contract. > > Compared to a CEX (with the exception of Coinbase) it is possible to own a part of the DEX. Many DEX have their own tokens. For example Curve Finance has [Curve DAO](https://coinmarketcap.com/currencies/curve-dao-token/) and Uniswap has [UNI](https://coinmarketcap.com/currencies/uniswap/). These tokens are used to pay for transaction fees on the DEX, they can be just held on to in the hope of them increasing in value but most important of all these tokens can be used to participate in governance. Everyone can put a proposal for improving a DEX, see the [Curve DAO](https://gov.curve.fi/) as an example for this, up for vote and everyone that owns the token of the DEX can vote (mostly 1 token = 1 vote) to determine how to go forward. Thus one can decide how to go forward to make the DEX even better. Something that is almost entirely impossible with a CEX. > > Privacy on a DEX is much better than on a CEX. On most DEXs no Know Your Customer (KYC) is required, a wallet that can not be linked to the person that is using it is sufficient. > > DEXs can have all assets on their platform that are available on the blockchain itself of made available through wrapped assets by [bridges](https://blog.liquid.com/blockchain-cross-chain-bridge). In theory the number of bridges that can be made between blockchains is infinite thereby the number of assets that can be listed on a DEX is also infinite. In reality though there are only bridges between the major blockchains available at the moment. This still provides plenty to chose from. According to Coinmarketcap there are currently [935 coins](https://www.coingecko.com/en/exchanges/uniswap#:~:text=Currently%2C%20there%20are%20938%20coins,a%2024h%20volume%20of%20%24319%2C357%2C719.14.) available to be traded on Uniswap and [3,223 coins](https://www.coingecko.com/en/exchanges/pancakeswap) on PancakeSwap. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DEX) to find submissions for other topics.

RatherCynical

Except for AMM DeXs. Those operate on a liquidity pool rather than an order book

psychadelicbreakfast

Yeah I disagree with you. A blanket statement is not always true. Jupiter AMM on Solana is doing an airdrop next week for users of their platform.. they don’t seem scammy. So tread carefully for sure but not “avoid like plague”.