Why Is It Crucial for a New Token to Launch with Deep Liquidity on a DEX? ▴ Learn

Why Is It Crucial for a New Token to Launch with Deep Liquidity on a DEX?

Deep liquidity is crucial for a new token launch because it minimizes price volatility and slippage during initial trading. Without deep liquidity, even small buy or sell orders can cause massive price swings, which can lead to rapid impermanent loss for LPs and poor execution prices for traders.

Deep liquidity fosters a stable trading environment, builds trust, and encourages wider adoption of the new token.

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