AMM Liquidity Risks Due to Whale Withdrawals | Flash News Detail | Blockchain.News

AMM Liquidity Risks Due to Whale Withdrawals

9/17/2024 7:53:28 AM

AMM Liquidity Risks Due to Whale Withdrawals

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

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