Become a Market Maker and drive your own success

MVCswap is an AMM DEX, I will explain here what it is and will come back in a future email to explain how to use MVCswap.

Have you ever dreamt of being a market maker?

Picture yourself as a Formula 1 driver, always ready to set the price between two assets.

That's exactly what an "Automated Market Maker" (AMM) does.

An AMM is like a robot that works round the clock, setting prices using a mathematical formula.

It's like a chef who always uses the same recipe to make your favorite dish, ensuring the same taste every time.

For instance, Uniswap, a type of AMM, uses the formula x * y = k.

But how does it work exactly?

Imagine a large communal pot, filled with assets by users called liquidity providers.

It's like a party where everyone brings a bottle of wine to share.

The more wine, the merrier the party.

Similarly, the more liquidity in the pool, the less price fluctuation for large orders.

But beware! There's a snag called "impermanent loss".

It's like when you lend your vintage car to a friend and they return it with scratches.

If the value of your deposits changes after you've added them to the pool, you incur a loss.

That's why it's crucial to understand the implications of impermanent loss before you dive in.

AMMs are a major innovation in the world of crypto.

They're still in their infancy, but they promise a revolution in how markets are created and managed.

It's like switching from black and white TV to color.

To sum up, AMMs are like personal assistants, tirelessly working to facilitate transactions and create new markets.

Like any innovation, they have their limitations and risks, but the potential they offer is immense.

Talk soon,

JACQUES - SPACE EXPLORERS

PS: link for MVCSwap https://mvcswap.com/#/