Decentralized exchanges (DEXes) have become increasingly popular in the cryptocurrency industry due to their lower fees and increased security. However, with the rise of DEXes comes the need for traders and liquidity providers to understand the risks involved, particularly when it comes to using automated market makers (AMMs).
In this episode, we'll take a closer look at the risks associated with AMMs, including impermanent loss and price slippage, and provide insights on how to calculate these risks accurately. So if you're looking to get smart about DEXes and AMMs, keep reading to learn how to define the risks using math, instead of relying on random excel sheets to calculate.
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EP 25: Calculating 2 Risks in DEX, Price Slippage and Impermanent Loss