Gone are the days where trading was exclusively done by the order book model, where someone willing to sell would have to find someone willing to buy at the same price for the trade to become successful. The presence of market makers willing to buy and sell at any given time would eliminate the liquidity problem. In a world with no transaction fees, this would be the optimal solution, although that\u2019s not particularly the case for crypto markets, where gas fees have been steadily increasing for the past months. DeFi liquidity pools have become the solution to this problem, and here\u2019s exactly why.Let\u2019s say you put a single pair of different tokens into a pool, and you lock them in a smart contract. That single transaction creates a market at which the price of a token depends upon the price of the other, which is why the first liquidity provider (LP) sets the initial price of the assets. This incentivizes the LP to supply an equal value of the two tokens, given that if they decide to diverge from the current global price of any of the tokens, an opportunity for arbitrage will be created and the LP might suffer a capital loss. Consequently, all the following LPs that decide to add more tokens to a liquidity pool, must follow the rule of equal value among both tokens.Each token swap occurring in a liquidity pool is followed by a price adjustment set by an algorithm known as the Automated Market Maker (AMM), the mechanism through which the product of tokens can be held constant. For instance, if someone buys ETH from a DAI-ETH pool, the quantity of ETH will decrease, which will then push the price upwards. At the same time, the relative price of DAI will decrease as the\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Il est r\u00e9volu le temps o\u00f9 le trading \u00e9tait exclusivement effectu\u00e9 par le mod\u00e8le du carnet d'ordres, o\u00f9 quelqu'un dispos\u00e9 \u00e0 vendre devrait trouver quelqu'un [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts\/4271"}],"collection":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/comments?post=4271"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts\/4271\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/media?parent=4271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/categories?post=4271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/tags?post=4271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}