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I have noticed some new coins go tits up when secondary pools are created in other dexs. Is there a wrong way to create additional pools that cam wreak havoc on price stability?

3 years ago by primateskulls.algo

Comments3

3 years ago by wojak.algo

There are arbitrage bots always on the lookout for new pools. If there is a huge imbalance between assets, they will exploit it. For example, if you create a pool with 1 algo and 1 million tokens, the bot can just spend 1 algo and get most of the tokens out.

3 years ago by primateskulls.algo

I remember the weblen crash when borderless dropped a massive amount into a humble or pact pool. Quite a rollercoaster.

3 years ago by primateskulls.algo

It just happened to copium coin a few moments ago. Price drop from 12A to 0.02A in a flash. Bots snatched up most of it quick.