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About crypto exchanges

In the world of crypto exchanges, two primary models have emerged: traditional exchanges and Automated Market Maker (AMM) platforms. Traditional exchanges like Mango operate on the classic principle of a central limit order book (CLOB), where buyers and sellers are matched, facilitating direct trades. This model has been the backbone of financial trading for decades, providing a familiar structure for those accustomed to stock and commodities markets. It's also highly efficient allowing for price discovery, transparency and deep liquidity.

AMMs represent a novel approach in the DeFi landscape. Here, instead of the traditional buyer-seller matchmaking, trades are executed against a liquidity pool. These pools are essentially reservoirs of different tokens, allowing users to trade their assets without the need for a direct counterpart. This mechanism not only simplifies the trading process but also enhances liquidity, making it easier and often faster to execute trades.

Yield generation is a key feature of many modern crypto exchanges. It works through two main avenues: fees and farming. In the AMM model, a portion of trading fees are redistributed to liquidity providers as a reward for contributing their assets to the liquidity pool. This incentivizes users to deposit their tokens, ensuring that the pool remains robust and trades can be executed smoothly. Yield farming, another lucrative aspect, involves users staking or lending their crypto assets in return for rewards, often in the form of additional tokens. On Mango your deposits automatically earn interest. This not only generates passive income for the users but also supports the overall health and liquidity of the platform.

The landscape of crypto exchanges is always evolving, with traditional and AMM platforms offering diverse options for trading and yield generation. The growth of these platforms reflects the innovative and adaptive nature of, providing users with multiple avenues to engage with digital assets.