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All you need to know about price impact on decentralized exchangesEver swapped tokens on a DEX and wondered why the price suddenly shifted before your trade was confirmed? That’s price impact in action. Unlike centralized exchanges (CEXs), where order books match buyers and sellers, decentralized exchanges (DEXs) use liquidity pools to execute trades. This means your trade size directly affects the price of an asset, sometimes more than you’d expect. If you’re serious about optimizing your trades and avoiding unnecessary losses, understanding price impact is key. Let’s dive in! Understanding Price Impact What is Price Impact? Price impact refers to how much your trade moves the market pric -
Impermanent losses on DEX platforms – the how and whyThere’s a hidden risk lurking in liquidity pools that every provider should be aware of: impermanent loss. This phenomenon can reduce returns even when liquidity providers (LPs) are earning trading fees. But what exactly is impermanent loss, and how can you manage it? Let’s break it down! Understanding Impermanent Loss What is Impermanent Loss? Impermanent loss occurs when the value of your deposited assets in a liquidity pool changes relative to holding them in a wallet. This happens due to price fluctuations in the paired assets within the pool. The greater the divergence, the higher the loss. The Mechanics of Impermanent Loss -
The Great Fix™ is complete.Over the past few weeks, we have been working diligently on a number of improvements aimed at optimizing DEX performance by strengthening its internal structure. We are proud to announce that The Great Fix™ is complete, and you can now witness an improved version of DEX. The Great Fix™ includes: Users now always see the correct token value in dollar equivalent. We have improved the complex algorithm on the backend, and it is now capable of accurately determining asset values even under high blockchain or DEX loads. From time to time, we restart DEX to add a new feature or perform technical maintenance. As part of The Great Fix™, we
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Multipools and How They WorkMining forms the backbone of the entire blockchain framework, allowing transactions to be processed and hashed in the decentralized ledger. As a rule, the transactions are processed by miners, or node operators, who have a vested economic interest in supporting the operability of the network. The miners receive rewards for their efforts in the form of native blockchain coins, which can later be sold, as are Ethereum, Bitcoin, and many others. Though the period between 2022 to 2023 has seen a considerable drop in blockchain activity overall, with the slump in crypto trading, mining remains a viable and attractive form earning cryptocurrenci
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The Perils of AI-Assisted TradingThe advent of artificial intelligence heralded a new era in both data processing and the utter diminishment of human critical thinking and information analysis. The ability of AI to process vast amounts of information makes it an ideal instrument for the identification of possibly beneficial grains of data that can be used to derive insights and trends. However, the forecasting abilities of AI are extremely limited, since they rely on the information that the machine is provided with. Considering that the AI is devoid of the ability to apply critical thinking and distinguish truth and facts from garbage data, the reliability of the derivation
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Blockchain as a Streamliner of FinanceBlockchain technology was initially developed as an alternative for the traditional financial industry. Considering the many limitations of such gateways as VISA, MasterCard, and traditional banks, Bitcoin – the original cryptocurrency – leveraged blockchain as a means of accelerating transactions and eliminating intermediaries from the chain of operations. By making payments faster, more transparent, and more affordable, blockchain was conceived as an ideal alternative to international gateways and the financial infrastructure as a whole to facilitate cross-border monetary transactions. As time passed and the blockchain and cryptocurrency
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Uses of AI in Web3 and Web3.0The use of Artificial Intelligence, or AI, is slowly spreading, with new applications being discovered for the technology, and some previous ones – discarded. And while some are questioning the real-life applications of AI, others are stressing the vital role it will play in the formation of the internet of the future, or Web3. However, there are still some misconceptions about Web3, or to be more specific – about the differences between Web3 and Web3.0. The fact of the matter is that both of these technologies have some aspects in common, but are rather different, with AI being the major factor uniting them under the banner of the interne
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Web3 and Trading – The MergerWeb3 is the next stage of the Internet, as described by most tech enthusiasts and experts alike. The decentralized version of the web is predicted to be much faster, more intuitive, reliable, transparent and user-oriented than its Web2 counterpart that we are all using today. Most importantly, Web3 is supposed to be based on blockchain technology, meaning that it will be entirely decentralized and will eliminate the need for any intermediaries, thus greatly expanding the liberties of users and ensuring the security of their personal data. Web3 will be using artificial intelligence and machine learning as a basis for many of its services, t
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Crypto Portfolio Rebalancing – The Key to a Lasting Market StayThe cryptocurrency market is in perpetual motion, meaning that no single asset can expect to retain its original value for too long. Such volatility places the portfolios and, therefore the potential profits of investors, at risk. In order to avoid such loss of value arising from price dynamics, investors resort to a tactic called portfolio rebalancing. Portfolio Rebalancing Explained If portfolio rebalancing is to be explained in short, it is the redistribution of available assets through subsequent purchase and sale operations with the aim being their return to original weightings within the portfolio. A simple imaginary case can b
