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…Essentially, users of DEXs interact with smart contracts on the relevant blockchain. There are three main types of DEXs, all of which allow users to trade directly through smart contracts: Automated Market Makers (AMMs)Order book DEXsDEX aggregators Automated Market Makers (AMMs) An AMM relies on information provided by exchanges and blockchain oracles to set the price, where — instead of matching buy and sell orders — the smart contract uses a liquidity pool, which is funded by other users …
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…Essentially, users of DEXs interact with smart contracts on the relevant blockchain. There are three main types of DEXs, all of which allow users to trade directly through smart contracts: Automated Market Makers (AMMs)Order book DEXsDEX aggregators Automated Market Makers (AMMs) An AMM relies on information provided by exchanges and blockchain oracles to set the price, where — instead of matching buy and sell orders — the smart contract uses a liquidity pool, which is funded by other users …
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…Taker Fee A succinct definition of Taker Fee Taker FeeLevel UpNEWIndividualsBusinessesDevelopersDiscoverCompanyGLOSSARYTAKER FEECopy linkShare on TwitterShare on FacebookShare on LinkedinTaker FeeA taker fee in cryptocurrency trading is a fee charged by an exchange to traders who remove liquidity from the order book by executing trades that are immediately matched with existing orders. These traders are referred to as ‘takers’ because they ‘take’ liquidity away from the market by complet…
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…Maker Fee A succinct definition of Maker Fee Maker FeeLevel UpNEWIndividualsBusinessesDevelopersDiscoverCompanyGLOSSARYMAKER FEECopy linkShare on TwitterShare on FacebookShare on LinkedinMaker FeeA maker fee in cryptocurrency trading is a fee that cryptocurrency exchanges charge to users who add liquidity to the order book by placing limit or stop-limit orders that aren’t instantly matched with an existing order on the exchange. These users are referred to as ‘makers’ because their orders …
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…It is short for ‘Let’s f—ing go!’.Full definitionLightning NetworkThe Lightning Network is a Layer-2 protocol built on top of the Bitcoin blockchain.Full definitionLiquidation CallA liquidation call is the process where a trading platform forcibly closes a trader's position because the margin account balance falls below the required maintenance margin.Full definitionLiquidityLiquidity refers to the ease with which a cryptocurrency can be bought or sold in the market without causing a sig…
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…DEXs offer users a more decentralised service than a standard centralised exchange (CEX) because they are Automated Market Makers (AMM), which use liquidity pools to allow for trades. In traditional order books, the CEX connects buyers and sellers to perform transactions, and users only have access to the tokens it provides. Whereas, on a decentralised exchange, users have access to virtually any token, since any user is able to provide liquidity. To access dozens of DEXs in one app, download …
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…These orders sit on the order book and ‘make’ the market. Taker fees are charged to users who remove liquidity by executing trades that match existing orders on the order book. These users ‘take’ the existing market liquidity.In blockchain networks like Ethereum, users pay ‘gas fees’ to execute transactions or smart contracts. Gas fees compensate validators for the computational work required to process and confirm transactions, and the cost of gas can fluctuate based on network cong…
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…It is owned and run by a central authority figure or company in a centralised manner.Centralised exchanges typically have an order book, which is how they facilitate trades. For example, a trader puts in an order when they wish to sell a token at a particular price, and another trader sets an order to buy the asset at the same price. The CEX will connect these two traders so that a trade can be completed on both ends. This is how the order book works: cataloguing every buy and sell order and con…
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…What Is Uniswap (UNI)?Level UpNEWIndividualsBusinessesDevelopersDiscoverCompanyUNIVERSITYAltcoins10 Nov 2023|BEGINNERS|5 MIN READWhat Is Uniswap (UNI)?Learn about Uniswap, an exchange on the Ethereum blockchain that uses the Automated Market Maker model and liquidity pools for decentralised trading. Key Takeaways: Uniswap is a decentralised exchange (DEX) built on Ethereum using the Automated Market Maker (AMM) model.Trades on Uniswap are made against liquidity pools instead of the traditional …
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…DEXs offer users a more decentralised service than a standard centralised exchange (CEX) because they are Automated Market Makers (AMM), which use liquidity pools to allow for trades. In traditional order books, the CEX connects buyers and sellers to perform transactions, and users only have access to the tokens it provides. Whereas, on a decentralised exchange, users have access to virtually any token, since any user is able to provide liquidity. To access dozens of DEXs in one app, download …
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