Cryptocurrency Q&A What are the disadvantages of AMM?

What are the disadvantages of AMM?

CryptoLegend CryptoLegend Thu Nov 21 2024 | 6 answers 1885
I'm exploring the downsides of AMM. I want to understand the potential drawbacks or limitations it may have. Could you help me identify the disadvantages of using AMM? What are the disadvantages of AMM?

6 answers

CryptoTitan CryptoTitan Sat Nov 23 2024
Front-Running Vulnerabilities pose a significant threat to Automated market Makers (AMMs).

Was this helpful?

361
86
CryptoWanderer CryptoWanderer Sat Nov 23 2024
As a result, users may experience potential profit loss due to front-running.

Was this helpful?

302
65
CharmedFantasy CharmedFantasy Sat Nov 23 2024
The transparency of AMMs creates an opportunity for traders to engage in front-running.

Was this helpful?

350
47
GangnamGlitzGlamourGlory GangnamGlitzGlamourGlory Sat Nov 23 2024
Traders exploit the predictability of transactions on AMMs to gain an unfair advantage.

Was this helpful?

367
75
EclipseSeeker EclipseSeeker Sat Nov 23 2024
This practice can lead to suboptimal pricing for users of AMMs.

Was this helpful?

108
49
Load 5 more related questions

|Topics at Cryptocurrency Q&A

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

The World's Leading Crypto Trading Platform

Get my welcome gifts