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The phenomenon known as price impact is a constant pain for traders who are familiar with high-frequency trading or have ever traded on cryptocurrency exchanges. When the effects of a price impact take place, traders are at a loss, bringing about frustration and financial setback. What Is Price Impact? The phenomenon of price impact can be best explained by the sudden change in the price of an asset as a result of the processing and execution of the transaction related to it. The price impact itself is calculated in the form of the size of the order being traded in relation to the amount of liquidity currently available. The relation

The cryptocurrency space is still teeming with all manner of fraudsters, scammers, hackers and ne’er-do-wells, all seeking to profit illegally in an industry that is still suffering from lack of proper law enforcement. The year 2023 has seen a considerable decline in crypto-related crimes, according to a report by Chainalysis, largely due to the overall slump in liquidity volumes on the market, making it less attractive for criminals. Still, crime still runs rampant throughout the crypto industry and the following is a list of the most common types of fraudulent schemes encountered by users in the market in 2023. The Investment Manager

Decentralized asset trading, or liquidity pooling in decentralized finance services, is inextricably connected with the risk of losing funds due to the inherent price volatility of cryptocurrencies. One of the most common reasons for the deterioration of profits and portfolios on decentralized trading platforms is the risk of impermanent loss. Impermanent Loss Explained Impermanent loss is the potential loss of value or profits sustained as a result of the price difference of an asset within the timeframe when it was provided to a liquidity pool and the moment it was withdrawn. The loss will depend on the size of the difference in price

Crypto space is determined by profitability, making select projects attractive from a financial point of view. One of the most important indicators determining the profitability of a project or liquidity pool is the APY – Annual Percentage Yield. What Is APY? The APY is a formula that calculates the rate of returns one can expect to receive from the funds they deposit into a liquidity pool or farming platform. The APY usually includes compounded interest, making the returns users can expect to receive rather considerable over a period of time. Most platforms and liquidity pools indicate high returns of APY for advertising purposes. Howe

The blockchain is a fully-digital system that has no link to the real world. The smart contracts that networks run on have no access to off-chain data, meaning that the blockchain’s application becomes limited to online events. However, the introduction of oracles changes that by creating a link to the outside world. Blockchain oracles are services provided by third parties that feed information about events outside the blockchain to smart contracts. By providing verified off-chain information about real-world events, oracles act as bridges that make blockchain applications in the outside world possible. There are currently three main t

The problem of blockchain scalability requires solutions. One of them was the development of the concept of sharing on the Ethereum network, which entails the breakdown of network data into smaller sections, which are called shards. The shards contain their own packets of data, allowing them to essentially become distinct from others and thus work on strictly assigned sections of network information. The application of sharding can help reduce network latency, as they free up more processing power from each network node. The nodes store and process all network data, and the ability to lessen the load on each will allow them to work more ef