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How Do Decentralized Exchanges (DEXs) Impact the Liquidity Risk of New Tokens?

DEXs provide immediate, on-chain liquidity via AMMs, but small pools still pose slippage and volatility risk.
Greeks.Live17.11.25

How Do Decentralized Exchanges (DEXs) Impact the Liquidity Risk of New Tokens?

DEXs, through automated market makers (AMMs) and liquidity pools, provide immediate, on-chain liquidity for new tokens without needing a central listing authority. This reduces the initial liquidity risk compared to waiting for a centralized exchange listing.

However, if the liquidity pool is small, the risk of high slippage and volatility remains significant.

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