How can liquidity providers profit through fee sharing when a certain exchange launches an AMM automated market maker tool?

robot
Abstract generation in progress

【Crypto World】A well-known exchange recently launched an interesting automated market-making tool—AMM Bot, which brings a new liquidity solution for spot trading pairs.

How does this tool work? It's actually very simple. It is based on the constant product market-making algorithm, automatically placing orders across multiple price ranges in a separate liquidity pool. In other words, you don't need to manually place orders; the system can automatically maintain the buy and sell depth of the trading pair without human intervention.

Participation is also straightforward—simply inject two types of assets into the liquidity pool, and you become a liquidity provider. And then? Sit back and collect the fees. All transaction fees generated by the trading pair will be distributed to you according to your share in the liquidity pool. The more active the market, the more your earnings.

What's more flexible is that the AMM Bot supports adding or removing liquidity at any time. You can adjust flexibly based on market conditions and your own capital needs, without being locked into the liquidity pool. This greatly improves capital utilization efficiency.

To sum up simply: invest assets → become a market maker → enjoy fee dividends → manage funds flexibly. For traders seeking passive income, this market-making approach indeed offers a new idea.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • Repost
  • Share
Comment
0/400
BlockchainRetirementHomevip
· 8h ago
Getting paid while sitting? Sounds good, but what about impermanent loss? No one explains these details.
View OriginalReply0
FadCatchervip
· 8h ago
Collecting fees while sitting? Sounds good, but how long can this wave last?
View OriginalReply0
RegenRestorervip
· 8h ago
Getting paid while sitting? Sounds great, but what about unpredictable losses? That wasn't mentioned.
View OriginalReply0
GateUser-44a00d6cvip
· 8h ago
Sounds good, but I'm worried about slippage and impermanent loss... Can it really earn steadily without risk?
View OriginalReply0
CafeMinorvip
· 8h ago
This sounds good, but what about impermanent loss? Isn't it mentioned anywhere?
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)