Open Sesame is a decentralized cryptocurrency exchange based on the Ethereum blockchain. It uses an automatic market-making mechanism to provide the advantages of no intermediary, accessibility, liquidity, automation, etc., but it also suffers from high transaction fees, Disadvantages such as limited asset selection and slippage.
What kind of exchange is Open Sesame?
Open Sesame is a decentralized cryptocurrency exchange based on Ethereum blockchain technology.
Open Sesame Principle
Open Sesame uses a mechanism called automatic market making (AMM), which is a liquidity pool controlled by smart contracts. Traders can buy and sell cryptocurrencies by trading with pools without relying on other traders.
Smart contracts act as automated market makers (AMMs) for liquidity pools, adjusting prices based on a mathematical formula (constant product formula). This formula ensures that the product of the two assets in the pool always remains constant, thus keeping the price stable.
Advantages of Open Sesame
Disadvantages of Open Sesame
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