In decentralized exchanges run by an Automated Market Maker (AMM) the providers of the liquidity pool...
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In decentralized exchanges run by an Automated Market Maker (AMM) the providers of the liquidity pool do so because O They believe in the blockchain technology and are donating their crypto assets for liquidity. O They are speculating that their crypto assets will increase in value. O They are avoiding taxes on their crypto assets by donating them to the liquidity pool. O They are getting paid a return to provide liquidity. QUESTION 5 The main difference between a book built DEX and and Automated Market Maker (AMM) DEX is that O An AMM gives liquidity to buyers and sellers through pools of assets where a book built DEX matches people who want to buy with people who want to sell. O A book built exchange cannot be decentralized, but an AMM is normally a decentralized exchange. O A book built DEX records transactions on the blockchain and an AMM DEX does not. O There is no smart contract risk with an AMM DEX, but there is with a book built DEX. QUESTION 6 Determining the price at which an asset will be bought or sold is determined on a book built DEX by O Finding the price at which the buyer wants to buy and the price at which the seller wants to sell and matching them. O Through a mathematical formula that tries to balance the number of tokens left in the liquidity pool. O By using an oracle to report the average of the last several trading prices from centralized exchanges such as Coinbase and Kucoin. O None of the above. In decentralized exchanges run by an Automated Market Maker (AMM) the providers of the liquidity pool do so because O They believe in the blockchain technology and are donating their crypto assets for liquidity. O They are speculating that their crypto assets will increase in value. O They are avoiding taxes on their crypto assets by donating them to the liquidity pool. O They are getting paid a return to provide liquidity. QUESTION 5 The main difference between a book built DEX and and Automated Market Maker (AMM) DEX is that O An AMM gives liquidity to buyers and sellers through pools of assets where a book built DEX matches people who want to buy with people who want to sell. O A book built exchange cannot be decentralized, but an AMM is normally a decentralized exchange. O A book built DEX records transactions on the blockchain and an AMM DEX does not. O There is no smart contract risk with an AMM DEX, but there is with a book built DEX. QUESTION 6 Determining the price at which an asset will be bought or sold is determined on a book built DEX by O Finding the price at which the buyer wants to buy and the price at which the seller wants to sell and matching them. O Through a mathematical formula that tries to balance the number of tokens left in the liquidity pool. O By using an oracle to report the average of the last several trading prices from centralized exchanges such as Coinbase and Kucoin. O None of the above.
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