⚖️ Liquidity Pools on DEX ⚖️
Explains how liquidity pools on decentral exchanges like pancake swap behave in the Teneo ecosystem
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Explains how liquidity pools on decentral exchanges like pancake swap behave in the Teneo ecosystem
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Besides the another important part of the ecosystem is the existence of liquidity pools. With them Teneo creates trading pressure on the open market for . As soon as the price of an or a token changes in one pool, every other pool will follow because there are profit opportunities for . The liquidity pool also gains reflows like the pools of AMPL getting rebases. As an example: LP tenETH/BUSD -> x * y = k -> 100* 100 = k -> -> 101 * 100 = k -> the price goes down for . BUT: The ratio does not change. So more opportunities are generated by price differences and with this creating more trading pressure.