|
|
Uniswap is a well-known Ethereum-based decentralised exchange (DEX) that facilitates trades using an Automated Market Maker (AMM) algorithm.
The constant product formula, x * y = k, is the foundation of Uniswap's AMM model. In this equation, k is a constant value that doesn't vary when trading, while x and y stand for the quantities of two distinct tokens in a liquidity pool.
The token quantities are changed upon a transaction, but their product (k) is not altered.
The price of tokens fluctuates in response to trades, but this algorithm guarantees that the pool will always have liquidity.
This pricing change makes it possible for Uniswap to operate without a conventional order book. Despite the possibility of slippage and transient loss concerns, this strategy is attractive to both liquidity providers and traders because they receive fees from trades.
Start your own decentralised exchange, similar to Uniswap, using our premium services for Uniswap Clone Script Development from Zodeak Technologies With the help of our feature-rich, adaptable solution, you can build an effective, safe, and scalable AMM-based DEX that is prepared to upend the DeFi industry!
Mail : sales@cryptocurrencyscript.com
|
Locked
