Decentralized Finance typically consists of four key features: Swapping, Providing Liquidity via staking to the Liquidity Pool, Lending, and Borrowing.
Swapping is the ability for the Automated Market Maker (AMM) to match two requested trades up in value. Consider a Market Order over a Limit Order, for reference.
Swaps have a few terms associated with them:
  • Slippage - This is the leeway you set for the price to move during the transaction. It is the difference in what you expect for the price, and the price the trade executed.
  • Impermanent Loss - Is when the Liquidity Pool changes in value less than the change of just holding the currency. This occurs due to Volatiliy, and is Impermanent (Temporary) until one exits the pool.
On Vy Finance, we hope to use our Neural Net AI to provide live impermanent loss values. More on this in the future.
To learn How to Swap on Vy Finance, head to the Swap section.
Read more about Automated Market Makers on the Binance Academy. Read more about Impermanent Loss on the Bancor Network Blog.
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