This article is machine translated
Show original

💎 Magma: When Does Price Impact Increase? Price impact is an indicator of how much your swap will push the market price. In Magma, the expected price impact is clearly displayed before the swap. ✅This is important because, in the CLMM structure, liquidity is divided into price bands. 🟢Small swaps are usually processed within the current tick. ➡️There is little price impact. However, 🟠As the swap size increases, ➡️multiple consecutive ticks pass. If this process encounters a band with thin liquidity, the price will move sharply. Therefore, a high price impact value signifies that "this swap is pushing the market." 💬 Comment Price impact is a warning indicator The larger the swap, the more important it is to check. The tick structure is more important. Source 👍Magma Official Link Website | Twitter | Discord | Korean Community | Event Announcements #Magma

Telegram
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments