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Johnny-M

If eGLD goes down in value, how does the EGLD/LMEX

LP maintain parity? Typically, the LP would exchange one coin in the pair for the other coin in the pair. Can it do that with LMEX in the EGLD/LMEX pair given LMEX can’t be swapped?

#blockchain #cryptocurrency #elrond #english
0

4 ответов

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Johnny-M Автор вопроса

I said that in my comment…. With that in mind, how does the EGLD/LMEX LP maintain parity? Is the LMEX burned and replaced with MEX on the back-end?

0
09.12.2021
Marvin-
Johnny M
I said that in my comment…. With that in mind, how...

It is automated, by people swapping, the ratio between EGLD/lLMEX is just changing in the pool. There are videos explaining it better than me.

0
09.12.2021
Marvin-

Google for Understanding Liquidity and Liquidity pools istarivision

0
09.12.2021
Johnny-M Автор вопроса
Marvin
Google for Understanding Liquidity and Liquidity p...

That didn’t help, but thank you. Maybe an admin can explain?

0
09.12.2021

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