JalalOnChain

What actually happens when you 'swap' on a DEX

A decentralized exchange swap doesn't match a buyer to a seller directly — it trades against a liquidity pool using an automated market maker formula (like Uniswap's constant-product x*y=k). Your trade size relative to pool depth determines your price impact, which is why a $500K swap on a shallow pool can move price far more than the same swap on a deep one.

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