DEXes are eating up the trading volume of centralised exchange. We covered many areas of DEX, from understanding the mechanism behind to understanding the various math formulas. In the comments, people were asking how to calculate impermanent loss and the risks available.
So in this video, we cover 3 main things:
- What is the general formula for AMM
- What is the risk of trading within AMM (aka when you are a trader)
- What is the risk of adding liquidity in AMM and there is a price difference outside (aka when you are a liquidity provider)
Apologies for the late upload. I’m a few days behind. Just being slightly busy right now. But I’ll promise to continue uploading videos, content and explaining the math so it helps you to make informed decisions.