AMM Liquidity Risks Due to Whale Withdrawals
9/17/2024 7:53:28 AM
According to @intotheblock, Automated Market Makers (AMMs) face a significant risk from the dominance of whale investors in liquidity pools. If a large depositor decides to withdraw their funds, it can drastically reduce the available liquidity, leading to a significant price impact on trades. This potential volatility can affect traders who rely on AMMs for their transactions. (Source)
whales AMMs traders liquidity price impact