What is AMM？
In cryptocurrency, the AMM model was first practiced by Bancor and later successfully applied by Uniswap. AMM is the abbreviation of Automated market maker. Compared with the traditional centralized exchanges, AMM is equivalent to a decentralized market maker model where everyone can become a liquidity provider. They can obtain fees as income but also face "impermanent loss" risk. Similar to Uniswap, the core rule of OKX Swap is that the product of the pool balance of two assets is a fixed value: X*Y=K.
What is impermanent loss?
Impermanent loss occurs when an automated market maker's (AMMs) algorithmically driven token rebalancing formula creates a divergence between the price of an asset within a liquidity pool and the price of that asset outside of the liquidity pool.
How does impermanent loss occur?
|Change after adding liquidity||Impermanent loss(Difference between providing liquidity and simply holding)|
A step-by-step guide to purchasing and selling crypto on OKX,
Step 1: Log in to your OKX account
Before you can start buying or selling cryptocurrency on OKX, you must first log in to your OKX account. If you do not yet have an account, click Sign up and complete the registration process.
Step 2: Select Buy/Sell
Once you have logged in to your OKX account, click Buy Crypto in the upper left-hand corner of the screen to get started.
Step 3: Select your purchasing method
The next step is to choose how you would like to buy or sell . There are two primary options on OKX: Express and P2P trade.
Finally, simply confirm your transaction details.