πŸ’³Challenges 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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