π³Challenges in the Field
Despite its advantages, token market making faces its own set of challenges:
Inherent Market Volatility: The unpredictable nature of cryptocurrencies adds complexity to market making.
Risks in Smart Contracts: In the realm of digital currencies, even a minor coding error can lead to substantial losses.
Potential for Impermanent Loss: Liquidity providers might encounter losses due to price shifts in trading pairs.
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