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2024-09-17 07:53 |
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) |