Understanding AMM users

USDFI AMM Operations are made up of a diverse group of users who all play important roles in making the platform function smoothly. These users can be broken down into three main categories: Liquidity Providers (LPs), Traders, and Developers. These users all interact to create a positive feedback loop for the ecosystem.

Liquidity Providers, or LPs, are individuals or organizations who provide their crypto assets to liquidity pools. These pools are crucial for facilitating trades and ensuring that there is always enough liquidity available for users to buy and sell their tokens. LPs earn a fee, and they can choose to provide liquidity passively, as a way to earn passive income, or actively, by focusing on market making as their primary strategy.

Traders, on the other hand, are the individuals who actually use the AMMs to swap one token for another. These traders can include speculators, who use various community tools and products to make trades, arbitrage bots, which compare prices across different platforms to find any competitive advantages, and dApp users, who buy tokens from USDFI and then trade them in other applications on the same network or bridge to other chains.

Developers also play a crucial role in the USDFI ecosystem, as they are the ones building dApps and services on top of the USDFI protocol. Developers are invited to launch their own front-ends to interact with the USDFI protocol. There can be also many USDFI protocol tools built by the community, such as DEX aggregators that pull liquidity from several liquidity protocols to offer traders the best available prices.